So we’ve seen a house that’s up for sale on our development (which we love) it’s the last lot until they complete the development.
Currently in a 3 bed with 1 child but eventually hope to have a second. The house we would be buying would be our forever home.
After taking into account mortgage we’d be left with about £3.8k a month. After our bills, food childcare etc we’d have about £1500 left a month. We don’t have any debt and our cars are both paid off. They’re not new but are running well and good makes so I don’t think there would be problems in the near future. That money would include money for holidays, birthdays, Xmas etc and general monthly spend. Already factored in savings for MOT’s, gym, hair appts, petrol, subscriptions, charity donations etc.
I’ve done a couple of pressure tests and if my mum couldn’t look after my son two days a week for whatever reason and our mortgage went up from 4% to 6% we’d have £900 to live off a month for fun money, savings anything going wrong etc not including child benefit.
Do you think that is enough? We are fixed for 4 years and hoping to just borrow more on our current mortgage. I’m in a career where every 5 years my income can increase by £10k or more so I’m hoping by the next remortgage to be on at least £5-£7k more and am willing to move jobs if need be to achieve that. With my student loan that gives me an extra £300 or so a month to play with, but obviously it guaranteed.
I live in Kent and house prices are predicted to go up by 20% in the next 5 years so I’m scared to not move now and be stuck in my current house.
So do you think £1500 is enough and worst case would £900 be?
I’m a new mum so I’m a bit ignorant to ongoing expenses with kids and whilst he’s so little I know costs are lower (excluding childcare). I just don’t want to be house rich and money poor and I’m just trying to figure out what the best thing for my child’s future is.