A first-time buyer: is this amount too much?

[meistar]

I'm a FTB and about to make an offer for a house we really like. It's a 3-bed property in West London and the asking price is £900k. We have an AiP with 85% LTV and planning to apply for a mortgage immediately if offer is accepted.

I am a bit stressed - is 900k too much for a FTB? As I have no experience with mortgages, do you think we'll have any problems getting an approval? Our credit score is literally "excellent" but still, I cannot be sure..

What do you think?

I agree ... all it takes is 1 serious issue and ‘safe as houses’ is no more ...

If I had the money, I’d probably split across various assets, but I don’t do not for me to worry

OP: is there a specific reason your 1st purchase is a higher value property (were you working overseas or some other barrier to buying before?)

Do you NEED to stretch so far, is there something special about this house/do you just want to buy one house and live in it for a v long time?

I ask because you seem slightly apprehensive

@meistar: you can always get life insurance/critical illness cover to pay off the mortgage (Or even redundancy cover but that’s probably really expensive right now)

Look into that as I’d say that’s the main risk, even more than losing job as you can always find something else & downsize if that were situation

That's a lot of money for a 3 bed house. What're you smoking?

Move somewhere cheaper and buy a 4 to 5 bed house with a very large garden for £500k to £600k and use the extra £300K make up the house. Build a garden room/gym or annexe. Extension, conservatory etc.

Please don't waste your money.

@chukwe welcome to London. Sounds fairly reasonable to me esp if in zone 4 or lower

The reason I didn’t buy a 1m pound house recently was because I didn’t want to take out more than 60% loan to value. I imagine next year as property prices fall those with more equity to cushion them will obtain better remortgage rates. However I imagine West London prices won’t really fall much so you should just go for it.

However I imagine West London prices won’t really fall much so you should just go for it.

The more prime and central areas have been falling already. Nowhere is immune.

[quote Bells3032]@chukwe welcome to London. Sounds fairly reasonable to me esp if in zone 4 or lower[/quote]
Yes, in the West London around Chiswick, Hammersmith etc. Not the case some places in SE London where I live.

@chukwe Agreed. For £900k you'd be looking at a decent 5-6 bedroom in SE London.