Upsizing but scared ! Please advise on my budget

[Rosmah1511]

We are thinking of moving to a bigger house in a better area but I am scared . Growing up my parents were very risk averse and played it safe and it's made me very anxious amount money. We never had enough.

So, a break down for the new house.

Mortgage amount £300,000

Joint income £2900
Mortgage £1200
All bills and food £700
Money left £500 x this by 12 months =£6000
Of this £6000
£1000 emergency fund
£2000 savings
£400 kids clothes
£400 cars mot/service

£400 birthdays
£1800 holiday

I also have a part time side job that earns me about £700 per month.

Have a missed anything ? Any other tips please ? I think the size of the Mortgage scares me more than anything .

I am terrified that I will move , not be able to make it work ( my current Mortage only is £500) and lose the house ! Anxiety is high :(

Sorry Op but my view is that this is far too much of a stretch. Is the mortgage fixed rate and for how long? How would you be affected by a rise in interest rates in the future because you don't have a lot of slack in your budget or a likely rise in taxes next year?

People thinking it's too big a stretch, have you taken into account app's guaranteed salary increases of £200 pm take home each year for the next 5 years? In 5 years (unless I've read it wrong) they'll have an extra £1k per month disposable income. Tight in the short term, but sounds fine to me in the longer term...?

What’s the school like where you live? My friend who I house shared with at University went to a secondary school where the police would routinely bowl up to arrest pupils. I went to a school who in league tables was bottom 15% once they were published. We met at a RG University, we were both taking out first degrees. She went in to read a PhD and I took professional exams. What your dc have naturally between their ears and parental influence count for more.

I think that level of mortgage debt is risky on your income. Can you not move to the catchment area without taking on so much debt?

@Dinosauraddict
That I should correct. I am on a graduate salary atm £26k will increase to 35k I a years time. And then in another 2 it will increase to £45k-£50k

So I think the first few years might be hard but it should ease later.

@Valkadin that might be the case I also went to a Russel Group/Red brick uni and have MSc and went to a 'rough' secondary school. It was horrible in that school . I want better for my children :(

@swimster01 I could but the difference in Mortage payments would be £300 so not that much

I know it doesn't seem a lot but if you are £300 overspent every month, £300 makes a difference.

Have you factored in the Council tax on this bigger house? My Council tax is over £300 per month and my house isn't in the highest bracket.

Sorry for repeating myself OP, but do you actually have an agreed mortgage with a lender at this level?

It’s not just a matter of you being frugal to pay everything, a lender has to be prepared to take the risk of a higher than normal loan on your income too.