Mortgage - 2k per month?

[frank2011]

Does anyone pay this much for their mortgage? We have seen the house of our dreams but can only afford if we up our mortgage to 2k per month. Seems like a massive hike & makes me feel so nervous. Husband feels we can do it as houses like this hard to find. At the minute we have no major money worries- can eat out, have nice holidays etc. Hate the thought of struggling when we have a nice lifestyle now. House is gorgeous though & actually good price for the location, space etc

Think what I mean is has anyone doubled their mortgage then totally regretted it?

I wouldn't, as my parents nearly lost our family home in the UK when they did something similar in the 80s and then interest rates went up to 14%.... Our mortgage is about 1/5 of our monthly income and I have a fixed rate for 20 years (I'm lucky enough to live in an EU country where fixed rate mortgages can last for the whole duration of the mortgage).

Well that's considerably more than I earn per month so no, I wouldn't do it but regardless of your income no house is worth stretching yourself for.

We bought a slightly crap house that we could afford on one salary if need be so we are never too stressed about it.

My sister, otoh, has a "dream house" but is mortgaged up to the eyeballs and there is no breathing space.

I know which I'd prefer.

Ours is a fair bit more than that, on a 25 year fix. It’s about 30% of our post tax income. I think the traditional affordability criteria is that the absolute maximum you should be spending post-tax is 35% (including bills) though that seems high to me. A more conservative ratio of 25-30% is more comfortable and gives you breathing room, especially with kid costs to consider.

Monthly income 5.5k. childcare costs £400. You can definitely afford mortgage of £2k! That still leave £3k to spend. Most ppl don't have that before any bills go out.

And interest rates going up massively over the next few years is unlikely as economy is too unstable at the moment. And if they do-it-yourself you have spare income to support it

Unfortunately you can't predict future. But if things to change, then you adapt (change jobs, sell house, get loan, accept help, cut back on spends, go for longer term mortgage to reduce cost temporarily)

The only time I don't support this advise is if you want more kids.

Definitely do it 😊

She's probably done it by now as the thread is from 2016

Oh yeah ,🤣