First mortgage nerves

[iwanttogotobednow]

Morning everyone

So after years of renting we are finally buying a house! We have had offer accepted and have secured a mortgage with nationwide at 5.04%. We had a decent deposit which helped ( thanks to MIL and FIL).

I a so excited but also feel a little nervous about it all. We used a broker as we wanted to get the best possible deal. We passed all of the checks and affordability assessments etc. Our total mortgage is for £330K with a monthly payment of £1937 for 25 years - we will both be 60 when it's paid which we think is ok.

When we were first looking at buying a house the rates were far lower and we were looking at monthly payments of about £500 less. I know that they rates may drop in the future and that we may be able to move to a cheaper deal at a later rate. We can also afford the current payments. Our rent is currently £1300 so it's quite a hike from that, but at least it will be ours one day!!

Does anyone else pay a high mortgage payment. For context, we both have professional jobs and our take home pay is 6k combined. DC's are at full time school and we have no childcare costs ( thanks again to MIL).

We have a not dissimilar income and our mortgage is £1500 but we have £500 childcare costs.

It just depends on your outgoings.

Sounds like you are doing fine , what deposit have you put on house as mention mortgage is for 330k - obviously depends where on country you are. First few years you might find you’re not clearing much capital but as you get further down line you will see house price increase (over long term) and debt reduced, rates will reduce in second half of decade.

We took a mortgage of £327k in early 2021 to it's a 300k deposit.
Rate of 1.5%ish so monthly payment is just over £1300 a month.
Hoping the rates comes down a bit from what they are now before we re-mortgage in a couple of years but imagine our monthly payments will be nearer what yours are by then.

I'm a FTB at 51. My partner couldn't come on the mortgage with me so it's all on my head. My take home is around 2200 and the repayment is 950. To say I'm shitting myself is an understatement. But to rent similar would be nearly 1400 so I'm consoling myself with that.
My soon to be husband will be contributing but I still feel its all on my head.

As long as you can afford to pay the mortgage payments from a cashflow point of view, then I think it's a mistake to compare the whole amount to renting. When you are on a repayment mortgage, part of your repayment is coming off the debt balance so think of that as a savings account in a way. The interest portion of your payment is more comparable to rent in that it is money you are genuinely paying out and not getting back.

Over time, your mortgage payments will gradually shift more and more towards repayment and the interest portion will reduce. Whereas rent will always be "wasted". .. not to mention the capital growth you are likely to benefit from in the longer term.

Stay positive OP, you are doing the right thing! There is never a perfect time to get on the ladder but over the long term you will be glad you have.

Hold your nerve! It's a real shame about interest rates going up just as you've taken the plunge, but rents will go up too to cover that rise so try looking at it as getting out of renting at just the right time rather than getting into a mortgage at the wrong time, iyswim.

We had a similar payment on similar salaries and it was fine. I say 'had' because we finally managed to pay the mortgage off last year and there is no better feeling! We stretched ourself to do it and overpaid whenever possible - for eg if DH got a bonus, we put as much as we could into the mortgage. I think we knocked 8 years off the term by the end of it all. It's so worth doing as soon as you can, even £10 a month adds up.

@iwanttogotobednow you sound exactly like us! Very similar amounts and take home & 2dc in primary. Still very scary and we've had a wobble but ploughed ahead and trying to be positive accepted mortgage this week so on to next stage.