Would this make us overcommitted?

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Hi,

we’re desperate to move house and have seen our dream property. The concern is that the mortgage would be £2200 per month.

we both work in well paid jobs and bring home £7100 per month combined. We have zero credit card or Lian debt but we do pay £350 per month for our car.

I estimate that other household bills and essential direct debits would be around £900

food ( family of 5) would be £600 per month

this means that we would be spending just over 4K per month,

would you be comfortable with this?

As a percentage of your joint income, I think it's fine. However, how is your income split? I'd want very good insurance to cover repayments in various situations & good life insurance.

Yes! It sounds like you will still have a large disposable income. I would go for it!

Yes that sounds fine to me, unless you have high childcare costs? Less than a 3rd of your take home

That still leaves you with £3000 per month, which is far more than a huge proportion of the population being home in a month for all their living expenses. Your mortgage would be less than one third of your joint take home income, which seems really low. When we bought our last house, our mortgage was around 70% of our joint income, which wasn't that uncommon the . But we wanted our house and economised in other areas until our salaries went up and interest rates came down.

Sounds fine and far more comfortable than most but it's still worth thinking about:

How realistic is your estimate of £900 pm for 'other bills'?

On top of the above, how much do you need to pay out for annual and irregular costs/do you save for things like insurance, car servicing/repairs, Christmas, school clothes etc, replacement of cars, white goods etc?

£600 pm sounds quite low for groceries for a family of 5 with a good income - are you sure this is all you spend?

Income security/protection, especially if one of you earns the majority of your income although your comment about both being in well paid jobs sounds like you both earn around £50-70k rather than one of you being on £100k and the other a low earner?

How much of a jump is it from now and would you need to change your lifestyle at all? Do you have any expensive hobbies or habits that you'd have to reduce spending on to balance the books? What's your spending on things like eating out, coffees, lunches etc?

Do you have any savings/have money left over at the moment, indicating that you can afford to increase your mortgage?