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Original poster

mortgage broker commenting on size of mortgage

39 replies

bearsbath · 27/09/2014 11:12

Name change to add personal details

L&C broker commenting a few times on what a large remortgage we will have

joint income is £4000 per month, child care £850, house value £230,000 and re mortgaging for £155,000. No other debt.

I was like oh is it? We are in zone 3 London so feels like a bargain and well within our capabilities. ..have I just got a bit numb to the figures?

OP posts:

VivaLeBeaver · 27/09/2014 18:46

You'll have over 2k left a month after childcare and mortgage.

Sounds ok to me.

lulupeg · 27/09/2014 18:51

Sounds brilliant to me for London! We are looking at raising a small amount of capital on our 4 bed, which will mean a total new mortgage over 100k more than yours, have only slightly more disposable income than you and our monthly payment will be over £1k. I know interest rates can and will go up but thinking about what you can rent for £700-1000pcm (errr a room in a house share?) we are both incredibly lucky if you ask me! We have done our own stress tests and will be fine but looking at your figures I'd be thrilled!

Moreisnnogedag · 27/09/2014 18:56

You'll be paying less than me (plus I have a lower monthly income)

ChippingInLatteLover · 27/09/2014 18:56

I think he's in the wrong job

It sounds totally fine. Don't let him worry you.

Original poster

bearsbath · 27/09/2014 19:00

Sorry George I'm probably being thick, but I dont understand your post? I am paying off debt...my mortgage? I am switching lender as I've come to the end of the term, I have a better LTV and am getting a better interest rate

OP posts:

msfreud · 27/09/2014 19:44

London prices have gone up so much in the past couple of years that you would really be better off having a new valuation survey done - I bet your house is worth more than £230k and your LTV and rates would be much better!

Original poster

bearsbath · 27/09/2014 21:13

thanks guys, you've made me feel better! When we first took out the mortgage I panicked as I thought it seemed like a lot of money then and a lifetime commitment! I cried for about the first 2 months we moved in

I love my house now and we are trying to overpay as and when we can while still saving like mad (like I said I'm pretty risk adverse so trying to cover all my pots) but I really was quite pleased with the £155,000 figure until he said something.

Those of you with bigger mortgages than me have also about double the size house as me! (which I'm a little bit envious of as I don't know if I'll ever be brave enough to make that move - see first paragraph and tears! )

OP posts:

ChippingInLatteLover · 27/09/2014 21:20

Zone 3 London as well. I'll be getting you to house hunt for me :)

LondonGirl83 · 27/09/2014 21:33

Based on your take home pay it sounds like you make circa 80K. You are borrowing circa 2x your income which is sensible. Less than 20% of your income is going towards income which is considered very affordable.

If you really have no other debts, even when interest rates increase you should be fine.

Not sure what George is on about either...

HolidayPackingIsHardWork · 27/09/2014 21:44

It sounds like a much better position than most young families in London. It sounds like you'll be paying out less than 25% of your income on mortgage, which is considered manageable. I don't know what other expenses you may have, but your child care costs should go down as the children get older.

mrscog · 29/09/2014 12:31

Your figures are all quite similar to ours - loan amount, property value, salaries, childcare and we feel we're at a sensible level. I wouldn't want to push much further as I'm very risk averse too. I think you should be very proud of yourself and carry on with the sensible overpaying etc :)

SqueezyCheeseWeasel · 29/09/2014 12:34

Sounds very affordable to me, with a good LTV. I think your broker is being v conservative (unless there is some huge outgoing you've accidentally failed to advise us of).

Original poster

bearsbath · 29/09/2014 13:31

no, no other debt and no huge outgoing I've forgotten to mention here

He asked what we did with the remainder of our money each month and I said I bank £1000 each month and then what's left over is what we can spend for the rest of the month.

OK, maybe he was a newbie. On a different note it's quite liberating having name changed and putting all my details out there! Hopefully I remember never to use this nickname again

OP posts:

lovingmatleave · 29/09/2014 14:31

It might just seem high compared to what they have themselves. I remember going over finances for a mortgage application years ago and being asked how much I spent per month on certain things. I said about £80 per month on clothes. The advisor was like ooh thats a lot, lets just say £20! She wore a uniform for work so it maybe did seem high.

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