Reasonable mortgage?

[expuffinbookclub]

Contemplating 205K mortgage for 25 years (I'm 38, DP40) to buy family house for 355. 5 year fix so monthly payments just under 900. Our monthly net income will be 3,000. I'm only working 2 days a week and in 3 years will probably do full time. I'm a teacher. We are moving north out of London and mortgage is same as current outgoing in a shared ownership property so part mortgage, part rent. It's just overall amount we are borrowing will have doubled and back up to 25 year loan from 18 remaining on current one. Does that sound do-able? I'm risk averse but DP confident it's fine!

Well it sounds fine to me, if it is the term length your worried about can you overpay?

Can I be nosey and ask if you have children or are planning any? The only reason for asking is that £3k net, less the mortgage, less childcare will leave you with very little. You'll also need to factor in the cost of life insurance for the additional amount you're borrowing which, given that you're presumably 7 years older than when you took it out for your current house, might be more than you think.

When we first took out our 137K mortgage back in 2002 our repayments were £950 a month (interest rate of 5.99%). We were on a fixed rate mortgage and when DS came along we continued with those repayments. We were on muc less thatn 3K a month net and had a £500 a month nursery bill.

We coped (we weren't flush with cash but weren't on the breadline either).

Eventually your income will rise and you'll be able to overpay.

I'ts not like you're going to be able to retire much before you're 67 anyway!

It seems more than reasonable given it's fixed for 5 years and it's less than a third of take home, and you've been comfortably paying similar already.

If you're worried, start saving extra in an ISA, so that way if you have major outgoings or you / your partner gets made redundant and needs to find a new job you'll be more able to manage.

not a financial advisor, so don't take this as advice

Hi Mandy214, we do have 2 kids, one starting school in reception in September and a1 year old. Luckily grandparents will look after them/take to school while I work so no childcare costs. I think I have got used to London weighting and paying mortgage very comfortabley and being in a new build that has no maintenance. We are buying Edwardian terrace but builder checked it out yesterday after survey and gave clean bill of health. Will overpay too. I think it's partly worry as my Dad died suddenly a month ago and feeling unsettled and strangely vulnerable. He was the everything will be fine voice for me. My Mum will be closer when we move but still 2 hours drive away which I know is very do-able and she us not against moving closer to us in future. Just wish she was down the road at moment. Think I'm not much of a change person!