Stretch for forever home or accept moving?

[Maybeforeverhome]

We have a combined net income of circa £10,000 pcm. We’re in our thirties, DH isn’t a FTB but I am and we’re currently renting. Our rent is £2200 pcm.

We’re currently TTC which means my income is likely to fall but DHs will increase over the next few years (for unrelated reasons) so it should balance out but it will mean more expense/outgoings.

We can buy a house for £750k with a 15% deposit and mortgage payments will be circa £3500 pcm. We will likely outgrow this house in 5 years. This means the expense of moving but also the stress and difficultly in trying to find a “forever home” in that area.

Alternatively we can buy a house for £950,000 with a 15% deposit, which would mean maxing out our savings. Mortgage payments will be circa
£4300. This would likely be our forever home.

Bills in both houses will be expensive due to poor EPCs.

What would you do?

You are high earners and young

950k and stretch the term if you want comfort (30 years maybe)

I say this as a slightly less young high earner with 2 kids.
We do okay on 10k pm including full time childcare x2 and 2500 pm mortgage and a 2200 sq ft period house that costs a bomb to run. One uk based 1 week hol per year (our choice as we dont fancy plane travel with such small kids)

This would all worry me tbh. Our salaries are similar and we've just bought a £730k house with a 30% deposit. Mortgage is £2800 per month.

That is affordable, according to the mortgage advisor "easily affordable", but by the time you pay all your bills, nursery for one, pay for cars, save for holidays (nice but not hugely extravagant), birthdays, rainy days and give yourselves each a very modest amount of spending money each month, the money is gone.

In your shoes I'd consider a cheaper area near where you want to buy and keep things more affordable.

I would be inclined to push for the bigger house as you talk about the smaller house as a significant compromise already. However I would consider what your wider circumstances are. For example we stretched ourselves knowing we are lucky enough to have parents who could help us if needed e.g. lending us money in an emergency. It hasn't been needed but it's a safety net. I also have a job where I could earn extra at the weekends if needed. I have known friends push to buy and have to prioritise each month what to spend on e.g. boiler this month, carpets next month (as in they currently have floorboards). Understandably others don't want to live that way.

These threads are always fascinating, as many people are saying you can't afford the mortgage, yet others (including us!) live off less than you will have after you have paid your mortgage. People have very different expenses based on their bills (how much you heat your house), childcare, do you run 1/2/no cars, how much you spend on clothes, socialising etc that it's hard to compare.