If you've bought a house for circa £1.25Million in the last few years how big is your mortgage?

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We've been in our current house for 11!years and we want to trade up.

The next jump is £1.25m ish.

The agents tells me that lots of people buying houses this level have £800k mortgages. Is this right?

We can borrow it but I just don't feel comfortable.

So just interested to know what others have borrowed.

Current mortgage is £380k and I think £600k is the max for me. Which gets us to £1.2m.

DH thinks we should go all out.

Out house is worth more than this and we have no mortgage

You have to look at if it is affordable for you AND if you will feel comfortable spending that much a month on your house

Also, think about what happens if interest rates rise? What if one of you can't work / loses their job? How much flexibility do you have in terms of spare cash for increasing utility bills, repairs, etc. These are all things to consider

We bought a house in the ballpark of that value last year and have a mortgage of around 400k. That felt fairly conservative at the time but now my job is looking less secure than it was and interest rates are going up it was probably the right decision.

My house is worth around that and we owe £360k. We bought for under £600k and took out a mortgage for £480k. I've just fixed for 5 years at £1700 a month and that feels a lot. I'll be much happier when the mortgage starts with a 2.

There are two ways of looking at it, and I take the view that we can afford it now and it doesn't actually matter if I never pay it off (although I hope we do). I'll make more equity on a more expensive house as years go on (my house has increased more in value in the last 10 years than my parents is currently worth). And in the meantime I get to
live in a bigger house and any equity I make is tax free. If we have to downsize in the end I'm not sure we are any worse off.

So if you can fix for a decent period and afford the repayments on balance I would go for it.

Fuck!¡!

That gives me the heebie jeebies.....

We bought four years ago for £1.3m, with a mortgage of £740k (double our previous mortgage) The half we ported over is a super low tracker, which even now it is rising, has a really low interest rate) the other part we’ve just renegotiated into a 5 year fix.

Technically we don’t need to borrow that much, but we wanted a large sum of cash for major works to the house. We’ve now done that work and increased the value of the house, as well as paid off some lump sums from the mortgage, so we owe £580k. Like a PP said, having more than 50% equity feels more comfortable, and like another PP said, we don’t have to pay it all off if we don’t want to (but it should be fine, the way things are going)

We’re on a tighter budget than you OP and have school fees to pay also, but it’s totally worth it to have the house we wanted! It’s such a personal thing though; it’s difficult to envisage other people’s finances…

interest only mortgage?? oh dear

Well it's what you asked. We have a house over this value mortgage free. I think the point is the level of security needed with more expensive houses in the event of illness or loss of employment.

Our mortgage is 200k house is worth around 1.3m. This is our 4th house. Each time we sell and buy again the house we sold is worth more than when we bought it and so we don't need to extend too much. The last time we bought we went a bit further our so we could buy semi rural and so we have a lower mortgage this time.

I believe some people buy with the intent to pay it off their whole lives until they sell and pay the rest off then. We buy with the intent to pay it off eventually. These days I wouldn't go over 300k mortgage if we absolutely had to.