Help with budgeting - mortgage of £100,000 and salary of £43,000

[IlanaK]

I am trying to move house and trying to work out on paper if we can afford the move. We currrently have no mortgage and would need one of 90 or 100 thousand to make the move we want. I do not earn. DH earns 43 thousand. We have written down all our expenses tonight and tried to think of everything including adding allowances for general spending etc. We have cut right back in the last couple of months - no more holidays, takeaways, meals out, etc etc. But it is too early to see if it is making a difference.

So, what I am asking is, any of you with similar pay and mortgage (we live in central london by the way) - is this realistic? Any I just forgetting lots of things when writing out he budget that is making it look better?

Any thoughts?

do you think you will be able to sell at the price you expect with a crippling service charge?

Hope it works out but you need to really budget properly. Have you looked at moneysavingexpert.com?

If your dc are old enough can you do the family budget as part of your HE?

We have had an offer on our place (not what we would like to get, but realistic in the circumstances) and have worked out the mortgage based on that sale price.

Yes, budgeting is certainly part of our daily discusssion at the moment with the kids - they were too used to getting what they asked for!

you can certainly do it and have an okay lifestyle, we certainly live on less with 4 dc. We don't have holidays but we're certainly not hard up just choosy about what we spend our money on. I would try and take out the longest term you can and ensure you can overpay monthly without penalty. Once you clear your debts then concentrate on clearing your mortgage prior to the interest rates rising.

I wonder if you can borrow extra to clear your current debts? Unless of course they are already 0% interest.

Good advice thanks! The credit card is 0% interest. The overdaft is not. Probably the mortgage will be with our bank (had a previous mortgage with them) and maybe offset.

Moving will actually allow us to shop cheaper! Where we currently live, the only supermarket is Waitrose and there are no pound shops etc - all pricey stuff. Where we want to move to there is a large Sainsburys as well as lots of pound shops and the like (making it sound really attractive aren't I?!)

I think Nationwide would let us have a 40 year term, but only until the breadwinner was 65. Def worth shopping around for the cheapest variable & fixed rate. I guess focus on clearing your overdraft.