Can we afford this mortgage?

[bitpissedoff]

DH and I take home 4200 per month. Mortgage on new house would be 1400 per month. Is this realistic?

Have looked through my outgoings and it seems fine but I am scared.

If you don't mind sharing, what is your mortgage to salary per month ratio?

It's not really about your salary, it's really is the out goings.
Someone may earn a lot but pay for a car loan, have credit cards, pay maintenance, expensive gym etc.

It's that that matters really.

Surely it's not the ratio that's important though, is it? It's whether your family will have enough £ left to live on after you've paid the mortgage every month.

Thanks for replies!

We don't have any loans or credit cards. Childcare is taken out already.

You need to do a spread sheet of all your incomings and outgoings and see how they balance up

25% of your take home income is considered 'affordable', so it's a little over going by that definition. However, as others have said, it depends on your other outgoings, e.g. Other loans, childcare, travel, etc.

I have £900 for bills, £500 for food

I would definitely add up your monthly outgoing. When you do, make sure you update for your new address. So if your mileage will go up, increase petrol. Check out council tax, think if the house is bigger if heating will go up.

Mine's 30%, but our figures are way lower than yours. But it does really depend what you spend the rest of the money on. I wouldn't have a mortgage that high, but then I don't want to have to worry about keeping high paying jobs. Consequently I don't live in a big house, or drive an expensive car, or go on expensive holidays, or buy lots of clothes, or much really. But that's me and my priorities. Depends what matters to you really.

Are you planning on having kids?
Stating the obvious, you are going to lose one of those salaries if you do.

What current IR are you paying?
Do the percent of take home using base rates at 6%

How much deposit are putting down?
A LTV less than 70% will let you get the cheapest mortgages.

Could you afford it when interest rates rise? Which will happen in the future.

When we first took out or mortgage we were paying 960 a month. We are now paying 600 on the same size mortgage, over approximately the same term and that includes an overpayment. We still have approximately the same size mortgage as we've added to it over the years with some home improvements.

The massive drop in interest rates since 2007 has really helped us, but we are forever aware that what goes down can go back up again!

If one of you loses your job, and mortgage rates jump to 8%, can you manage?

how easy is it to get a equivalent paying new job in your line of work?

Both teachers so have job security.
Family finished.

Have 60% deposit.

Hereandtherex we are currently mortgage free hence all the uncertainty.
We currently save £1000 per month easily.

What sort of mortgage rate is this based on? There are some longterm fixes out there (over five years, some up to ten) which will at least protect you from rates going up.

It is quite a big mortgage, relatively, but with your teaching jobs and large deposit, I wouldn't be too worried. We are at about the same ratio but part of it is childcare, and with much less deposit.

How much will you have left over to save up each month with new mortgage?