Repayments on a £400k mortgage??

[NoonarAgain]

Can anyone please help me calculate worst case scenario mortgage payments on £400k if interest rates went up to the worst conceivable level?

We are about to buy/ sell despite Brexit and i am trying to get our budget straight in my head.

BTW, i know its a lot of money to borrow but dh seems to think we could manage. However, i'd like to have the heads up on some figure before we discuss it properly tonight.

Many TIA

Actually, user, I find mumsnet to be an incredibly valuable source of info and have been getting amazing advice on here for over a decade, thanks.

My dh isn't he main bread winner and is arranging funding. we will, have no difficulty 'affording' the amount in the first instance. I am trying to improve my own understanding of what an uncertain market, post Brexit, could do to our repayments. At the moment, I feel that it is too much based on dh's stance on the subject so want research it myself.

Can anyone tell me this: when the repayments go back to a variable rate after the fixed term ends, is there much difference between lenders usually on the variable rate?

Sorry, stray comma...and should say dh 'is main breadwinner'

I am trying to improve my own understanding of what an uncertain market, post Brexit, could do to our repayments.

as of last week your house is worth 50p and half a Curly Wurly. But don't worry because we are all in the same boat.

I would say about £1800 per month too.

Lots of different types of mortgage. We found for a high mortgage it can be worth paying a bit more on fees to get a better rate over five years. The savings on the interest outweighed the higher set up cost.

We can also make regular overpayments or one off lump sums. There is a maximum per year and across the full mortgage term before a penalty is imposed.

Yy to mortgage term. We are 40's and couldn't get a 25 year term.

For working out an increase in interest rate, I calculated what we would owe in 5 years and then what repayments would be at a 10% interest rate. I think I used the bbc calculator.

Lenders' standard variable rates (SVR) tend to be all around the same so you shouldn't pick a lender based on that. Agree I'd fix for as long as you can and make over payments - make sure you tell the bank they're coming off the balance and not being used as advanced interest payments.

5 year fixed rate currently around 2% so well worth going for imo.

Thanks Tichy. Maybe I'm overthinking this. Plenty of families manage to pay £2k per month on rent don't they? Yet 400k mortgage sounds quite high. This thread has been really helpful, thanks everyone.

Can I ask another question? Would it be crazy to have a nice low fixed rate interest only for two years ( until eldest's school fees stop). Does that sound mad?

To be honest with the amount of uncertainty at the moment I'd fix for five years, particularly as you can get a pretty low rate right now. Interest rates could well be much higher in two years time than they are now so you wouldn't be able to secure as low a rate as currently.

No guarantees obviusly!

What about fixed rate interest only for 5 years and save to pay off capital as and when we can afford it? Does that sound viable?

as of last week your house is worth 50p and half a Curly Wurly

Be honest, you ate the other 1/2, didn't you user1465823522 ?

I would advise against interest only. The bank have a much more stringent criteria for interest only and they will most definitely want to see what sort of repayment vehicle you have in place to take care of the principal amount borrowed.

2yrs is not a long time. How about you and DH tighten your budget for 2yrs till DC is out of the school fees period?

Interest only is a very good option if you can get it. If the economy goes tits up and interest rates start to rise then you can reduce your monthly outgoings by paying the interest element only.

This is part of our contingency plan. DH has already lost a two month contract as a direct result of brexit. If things get worse we will pay only the interest element of our mortgage (we currently over pay to the equivalent of a repayment mortgage). Interest only gives you fantastic flexibility when the SHTF but pp is absolutely right in that the banks will want to see evidence of how you will repay the capital when the term is up.

hi redhat and notyet. We have irons in the fire that would ultimately enable us to pay off the mortgage, so i think dh could probably arrange the funding. for an interest only, as that is what he has mentioned recently.