disposable income- How much do you have?

[kbaby]

Heres the background. DH wants to buy a new house but it means our morgage would increase from 100k to 185k. I think we cant realisticaaly afford the extra payments ie £300 extra per month he thinks we can.

It would leave us with disposable income of £800 between us. Bearing in mind we have to do up this house and should MIL be unable to look after DC possibly pay child care.

Is he barking in thinking we could go for this house or am I just trying to find excuses not to move?

rofl rofl

you poor lamb

If by disposable income you mean what's left after bills, food and car running costs, then we have none.

My heart bleeds for your tough decision.

What do you mean by disposable income, this is the question. If I had to pay my childcare out of £800 that would be 3/4 gone in one hit and I only work part time. Do you need to buy food, petrol, holidays, bills etc out of this or is it just clothes, nights out, magazines?

thsi will not end well

When you say disposable, do you mean after deducting all bill payments, insurances, pension payments etc? What is your definition of disposable?

I have a feeling that maybe kbaby's meaning is different than we might initially think.

are you sure that an extra 85k mortgage is going to be just £300?

it sounds a bit optimistic to me

This is a wind up, no?

It is so far beyond gauche to talk figures like that, IMO.

MN rule #7934: if discussing money on MN, never name a number.

what's disposable income??

No seriously, with rising interest rates I would think very carefully about committing to a bigger mortgage regardless of whether you can afford the repayments or not. Do you REALLY need a bigger house?

or we will all mock you

Apart from the number ZERO disposable income

We have about 10p left.

£800 disposable I wish.

Hi Kbaby - the answer's about £80 between us a month after all bills, food, petrol, and other essentials, so your £500 with new house still sounds very manageable tbh.

But it's a risky time to be committing to a much larger mortgage in today's market, don't you think? And also bear in mind any unexpected costs that come along. If our boiler broke down we'd be stuffed, ditto the car. It's not a nice position to be in.

lol so far. This won't end well.

You need to define 'disposable' for us to be able to answer your question but, roughly, if you have a 'spare' £300 a month then yes, you can afford it, if you don't, you can't.

I don't know how disposable income is defined and it is frankly impossible that an extra 85k mortgage is only an extra 300. Unless you had a particularly bad mortgage deal previously. It sounds to me like you are looking at the initial payments on a new mortgage with a good deal for maybe the first year.

So the only thing I can say is please look at what your mortgage payments are in the future. Bearing in mind that interest rates are currently on an upward curve.

Finally am relatively new to MN. Why do these threads end badly?

Bozza - would you really count holidays as an essential to be accounted for before disposable income?!

quattrentro- its so vulgar to discuss your income on here when so many mumsnetters, quite frankly live hand to mouth.

if you have been putting at least £350 into a savings account each month for the last year or so then you could manage it, if not don't go there!

And I just checked, that much is about £400-500 extra a month

No I wouldn't. But the way we work our finances is that we put a certain amount of money away each month to pay for holidays by standing order at the beginning of the month so it comes out at the sametime as the bills. So it doesn't "look" like disposable income IYSWIM, but I realise it is really. Just like the £100 we put away to save towards a new car.

Our monthly payment is £550 on a £93k mortgage, that's not a great rate as we have a long term fix and have a small endowment but makes your £300 a month sound dubious.

That's like asking 'how much do you earn?'

thank you tiredemma. Just wondered if there was history like the McCann type threads, which it sort of seems there is. Appreciate the sensitivities.

I'd be really interested to hear other views of what disposable income is. Our £80 a month goes on the occasional takeaway, toys/nice clothes for DS, the odd bottle of wine/beer, birthday cards & presents, coffee money/snacks at work, fags (DH grrr) etc.