Mortgage payment £1100 on take home of £3700?

[saverssavedsavanak]

Is this bonkers?

Mortgage company says it's fine, I feel a bit nervous about it. Have had a small mortgage for years but found dream home. Payment would be £1100 pcm. My take home is £3700. Feels too high or have I just been used to a small mortgage for too long?

I pay £950 rent on £2800 take home (2400 atm because pandemic)
It's not a lavish lifestyle but it's absolutely fine

OP, I’m not quite clear what the worry is.

Is it that you are worried about possibly not being able to pay the mortgage in the future if you lose your job? Is there any danger of you losing your job?

Otherwise, yes, you are worryingly needlessly.

£2600 is more than a lot of people’s take home salary. Is that what you wanted to hear?

Thanks for all helpful comments.

And it's myself, a child and a dog. I suppose the actual number is so high it's scary, especially versus current mortgage payment. But yes when you break it down into what I'll have leftover I suppose it does sound a lot.

Sorry, I didn't mean to offend or upset anyone.

Our take home is £3300 ish. Our mortgage is £880. All our bills including savings are just under £2000. The rest is for food clothes socialising etc. I'd say you'd be fine.

I would find it a bit steep personally. My mortgage is £800 against an income of around £4.5k a month and I wouldn’t want to go much higher than that if I could help it. But ultimately it’s not ridiculous and clearly affordable so go for it if it’s what you really want!

Wow. Our joint take home is around £2k a month just now and Our mortgage is £900.
You literally have it made. Buy the house.

OP we’ve actually been considering similar. Take home pay is around £3400 and our current mortgage is only £500 and that’s with us overpaying over £200 per month. Looking at houses where the mortgage is closer to £900 and it definitely makes me pause. I think when you’re used to a certain payment you have all your other income accounted for even if some of that is savings so to have to juggle that around and put a lot more to the mortgage it is scary.

We still aren’t sure whether to go for it.

Will your council tax go up too? Ours would almost double so that’s something to think about as well.

That's completely fine. You still have 2.6k to live off & save.

I'm looking at a mortgage of 1,100 on a salary and cm of 3000 a month once I've separated from my husband. After all bills I'll have left 800, that's got to buy food and petrol. It's tight, I'm nervous, but it's OK.
Rent would only be a 100 or so cheaper! You live to your means I think. Sounds fine to me.

We have similar left over a month to support a family of 5. We can afford extra curricular activities for the kids, hobbies for the adults, weekends away, holidays, clothes, toys, savings, birthdays, Christmas... a bit baffled by this.

Jesus do people live in the real world on MN-

Nope, many are older &/or got on the ladder a long time ago, are not used to expensive house prices.. You could easily be paying 50% in rent.

Obviously your used to living on less as your pay has only just gone up & have saved 7k

Whilst it's a lot of money, you clearly earn a lot of money! So go for it! But i would try to save more so you've got more of a buffer - just with things being the way they are atm.
I was only earning roughly the amount of your mortgage in my last job!

£2.6k is surely plenty?

What other outgoings do you have?

Are you currently saving the difference between your current mortgage and the higher amount?

Do a proper budget. Include higher overheads for the new, presumably bigger house, C.Tax, water, extra heating, higher insurance etc.

Are you making pension payments?

If that is all one salary you are presumably in higher tax band; consider a salary sacrifice to make pension payments rather than making contributions out of your taxed income, it will be way way more tax efficient and make your pension work harder for you.

is 3.7 your take home after pension etc?

Write down all your outgoings (mortgage/life insurance/coucil tax/food/etc etc) all of it, make sure you cover every expense and some for repairs/birthdays/school uniform... done to the minor things.

Put some money aside for emergencies each month.

If you still have money left then go and enjoy your new home.

Best wishes

Wow.
I'd be laughing on figures like that.
Of course you can afford it

Look at moneysavingexpert.com there is a spreadsheet that you can put all income & outgoings on so you can play around with figures, don't forget that interest rates are very low now & may go up once we come out of the pandemic, can you get a fixed deal for a long time or can you factor in interest rate increases?

Are you serious? Your salary is £63k? Your take home pay is £3700?

Yes. You should be able to afford it!

What's your job security like op? You say you haven't been earning that amount for very long. Do you think your income always be high?

*Will always be that high

I've paid more than that on a similar salary in the past. My circumstances are different now so mortgage a lot higher but bigger joint income. I would be more concerned that I was overpaying for the house in the current market than the amount of the mortgage payment. Make sure you are buying something that will do you for a decade in the current financial climate as you may find yourself stuck.

agree with @memberof5

For Gods sake

You have a shit load left AND savings .

Sorry OP I just saw your update

I take back my comment .