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?

@SailingAwayIntoSunrise It wasn't a put down, is was a question because I think that reaction is a little OTT & not the norm.

Don't people realise that many people particularly younger ones have no hope of having housing costs as low as 18% of their income?

We take home just under £6000 per month and mortgage is £1400. We considered a house at £1800 but it stressed me out a lot. We do have a lot of outgoings though. I think your figures sound fine

Sorry that your dream home has gone, but the basic maths there is simple

You've told us that you saved £7.5K in the last 12 months, whilst you weren't earning as much as you are now, and whilst you were continuing to spend without worrying about it at all, yet your mortgage payments were only planing to go up £6360.

So, without any changes in spending you've got the money in your usual spending, and you've already recognised that you will earn more in the next 12 months than in the last, and you've already recognised that you could esily cut down on spending without too much impact.

@mapsie of course it was a put down. Would you ask someone in RL if they were an anxious sort if they said they weren't comfortable spending X amount?

No you wouldn't.

That would feel like too much for me. We have a mortgage of £1100 a month but a combined net income of £5000 a month. I guess it depends what your other financial outgoings and commitments are.

@SailingAwayIntoSunrise that poster didn't say she wasn't comfortable spending X, she said spending what she could afford made her stressed out. I think that's extreme since the vast majority of people have to pay something for their housing.

If I was with a colleague (for your analogy to work I need an idea of their income) & they said something similar I would ask them if they were anxious.

My aunt has anxiety & one big issue she has is not spending money even though she can afford it. Her anxiety holds her back & therefore had an impact on her dc. My mum & her have always clashed about it. Silly things like not buying a big enough car so all the dc could fit in. Or not moving house or even considering a loft conversion because of the cost so the dc had to share bedrooms until they left home. Our families are close but I have to back off sometimes particularly since having my own dc because the negativity is draining & it's quite claustrophobic.

Sounds fine to me. My take home pay is £1100 and my mortgage is £550. So I have a lot less left over and manage ok.

We have £3500 salary coming in between us after tax/pension and mortgage of £1050 and there are 2 adults, 2 children, dog, 2 cars to run. I think it's manageable if you're only 1 adult, 1 child, dog, 1 car.

@locorito you don't get to decide what someone can afford.

Regardless, it's a shitty comment that gets thrown around MN too much. It's just fucking rude and a put down. Which was exactly how it was intended.

Mine is roughly the same and I have about £250 of childcare a month on top. I do have a strict budget I stick too and so wouldn't say I have a lot left to spare - don't really do holidays more just a weekend away. I also do try and save 10% each month as well as overpay mortgage by £100.

Like you though I am a single parent and I think this is the main area in concern to me - it's all down to me and if I did lose my job It limits how low I could in salary for a new one as obviously commitments are high.

OP are you in the UK?

I am interested in the fact that you have no council tax.

It may be that you are somewhere where all the other costs are not comparable with UK costs, so you need far more to cover costs beyond the mortgage?

@sailingawayintosunrise you don't get to decide what is or isn't a shitty comment or what's the intention is behind a question

When we first
Moved in. Our rent was £1150 and our take home was 3500

We did fine

That seems right - it’s 30%of your salary

I pay 40% on rent at the moment and I still can save money each Month in London

@yinminblue it was another poster that doesn't pay council tax, not me.

@YinMnBlue it was me who said I don't pay council tax. I'm in Ireland, we have no council tax and no water rates. I know things are more expensive here but it's much of a muchness Imo as I lived in the U.K. for over a year.
Child allowance is more here- €140 per child per month. (Not capped and not means tested)
Electricity for us is approximately 80 per month (no gas bill as we are rural)
Car tax and insurance is higher here for sure though.

Your mortgage company says it is fine, because it is and they're fairly conservative, eg stress test you to a high interest rate, assume that you will continue all your discretionary spending rather than cut back to continue with the mortgage payments if your income dropped etc.

I know £1100 sounds like a big number, but your salary is high and it's been assessed as affordable so no need to worry. You'll still have plenty of spare income, so still scope to save or overpay as you see fit.

It’s on the line in therms of general received wisdom WRT the 50/30/20 rule, but still within bounds. Will all of the house-related bills amount to less than 30% of take home? If so then I think you’re fine. I think a lot of posters have been a bit unkind about what you will have leftover. You won’t be on the bread line by any stretch, but upsizing means more utilities, more insurance, and bigger costs related to upkeep, so you are wise to be cautious. One roof replacement can decimate an emergency fund. If it were me, I would buy and then work to build up your emergency fund. That will give you the cushion to deal with any unexpected expenses that your marginally decreased monthly disposable income might not as easily stretch to cover.

@linguaphile thank you for understanding! It's a new build so hopefully no house-related repairs for at least ten years. The particular one I was looking at has now sold though, unfortunately.

That's a shame OP. Hope you find another soon.

I completely understand where OP is coming from. I've a low mortgage to income ratio that I would feel weird about increasing. But then I'm crap with money and have other debts (more than mortgage amount) to pay off. Mortgage company probably wouldn't let me increase because of this - they are cautious.

My mortgage is £1,000pm our take home is £3,300 we manage. A smaller mortgage for us would be a much smaller house and our lives would be not as pleasant.