Are we crazy to double our mortgage!

[onthefence23]

We need to move, schools are bad in our catchment and we live next to a couple experiencing DV.
The emotional strain of hearing shouting and banging as a DV survivor is terrible.

We have enough equity and savings to upsize to somewhere we would never have to move again but it is still a bigger mortgage!

One DD and can't have any more kids.

Both in secure jobs, after tax/pension/student loan etc I bring home 2300 and DH approx 4500

New mortgage would be 1020

Nursery is 680 (with tax free childcare)
Utilities 400
Cars 400
Fun (gym/tv etc) 120
Charity dd 50
Shopping (food and toiletries etc) 450

On paper it looks fine but I'm having a wobble as current mortgage is 400 on our small starter home

Ratio of deposit/mortgage is 40/60

I appreciate we're lucky to be considering upsizing at all but feeling a bit nervous at the state of the world

[AlexTheBird]

I guess it's all relative - for me, that would be quite a modest sum to pay out for a mortgage on a three bed house when I consider that most rental places are £1500 per month for a two bed flat round my way. You're used to £400 a month which is very manageable, but with your take home pay, you would definitely pass the affordability on a new mortgage, surely?
There's a really helpful budget tracker on the Money Saving Expert - if you fill that in as honestly as possible and look into your monthly spending, that would help?
Your reasons for wanting to move up the ladder are very valid. Have you spoken to an independent mortgage broker? Everything is going to be more expensive for a few more years yet, but if you can fix for three or five years, you'll have peace of mind and we might be out of the cost of living mess by that time. We're highly unlikely to experience 1/2% interest rates on mortgages again, mind you.

[BarrelOfOtters]

It doesn't sound unreasonable to do to me. You've got room to make more cuts if need be. The world is always unertain...and if you can fix now you'll have a bit of uncertainty out of the picture....

[onthefence23]

Thank you for your reply, I hadn't compared to renting but you're right it's cheaper than a similar property by a long way which seems madness. The rental market must be so so hard to navigate.

We have been to an independent broker and passed affordability, they got us the deal at 1020.
I just assumed that the mortgage company were likely to push you through so they can get your money! Like any business really it's in their interest.

[onthefence23]

@BarrelOfOtters

It doesn't sound unreasonable to do to me. You've got room to make more cuts if need be. The world is always unertain...and if you can fix now you'll have a bit of uncertainty out of the picture....

Very true we could cut out a fair few things like gong to one car and nice gym memberships etc

[onthefence23]

The sun mentioned is a 2 year fix

[Proudofitbabe]

Sounds fine. Your other big expense is childcare, which will reduce when they leave nursery.

[mrsnjw]

We moved nine years ago into a much bigger house. Our mortgage went from £375 to £1050. It was nerve wracking as it felt like a huge leap. We absolutely don't regret moving and have needed the space as the children have got bigger. Our income is less than yours and we manage fine. Factor in council tax will be more. Life insurance etc will cost more

[MakeADecision]

That definitely sounds doable, we are also looking to move our current mortgage is £520 per month and looking at a mortgage of £1.3K, we probably bring in around £6.2K a month with 2 kids, youngest starts school in September.

What we have started doing is overpaying the mortgage every month to £1.2K and living as if we would with that size mortgage to get ourselves used to it

[AlexTheBird]

@MakeADecision

That definitely sounds doable, we are also looking to move our current mortgage is £520 per month and looking at a mortgage of £1.3K, we probably bring in around £6.2K a month with 2 kids, youngest starts school in September.

What we have started doing is overpaying the mortgage every month to £1.2K and living as if we would with that size mortgage to get ourselves used to it

Brilliant advice from MakeADecision about overpaying to get used to the new amount... that's very sensible.

[Growlybear83]

I would go for it - you would have a fairly hefty amount left over each month. It's looks as though your total outgoings would be £2,100 per month, with net combined income of £6,800. Even if the mortgage rate doubles you will will have more left in disposable income than most people being home in a month.

[CatOnTheChair]

That's around 15% of take home on a mortgage. I'd say that's pretty affordable - in fact you'd probably get offered the mortgage on just DHs salary.
Go for it.

[DahliasDelight]

We’re on similar salaries and have recently moved and upsized and our monthly mortgage figure is approx £300 more than yours, although childcare costs not as high. I would double check your utility figures as bigger house = bigger utility bills and that seems a low amount, also factor in maintenance and any work you may want to do, redecoration etc

Looks doable, just factor in a good contingency each month for that safety net and peace of mind.

[Mummyme87]

Sounds more than reasonable to me. Our mortgage is £1580 a month for a 3 bed terrace in south london. OH takes home about £3.9k and I take home £2.8k a month. We have two children and pay childcare, plus car, gym, bills, etc etc. we will be increasing our mortgage a bit next year.

[ThankmelaterOkay]

Did you salaries increase massively since you got the mortgage at £400? Why so low? Surely just pay it down as quickly as you can?

[onthefence23]

@MakeADecision

That definitely sounds doable, we are also looking to move our current mortgage is £520 per month and looking at a mortgage of £1.3K, we probably bring in around £6.2K a month with 2 kids, youngest starts school in September.

What we have started doing is overpaying the mortgage every month to £1.2K and living as if we would with that size mortgage to get ourselves used to it

Thank you that's a great idea! We've been putting more into savings since I got a promotion which is what's made it seem possible but not strictly sticking to new budget I suppose.

I'm naturally a safe player and would still be living in my first two up two down with no garden without Dh

[onthefence23]

@DahliasDelight

We’re on similar salaries and have recently moved and upsized and our monthly mortgage figure is approx £300 more than yours, although childcare costs not as high. I would double check your utility figures as bigger house = bigger utility bills and that seems a low amount, also factor in maintenance and any work you may want to do, redecoration etc

Looks doable, just factor in a good contingency each month for that safety net and peace of mind.

Good point that's what we're spending now so I'll factor in it being at least £100 more

[onthefence23]

@ThankmelaterOkay

Did you salaries increase massively since you got the mortgage at £400? Why so low? Surely just pay it down as quickly as you can?

Yes both had a few promotions at work, stayed in the same industries and moved up the ladder. We knew it wasn't our forever home but was great for 5 years and as we got paid just tried to put the difference into savings.

[FoolsOld]

We've just over doubled ours from £630 to £1427. Dream house, close to great primary and secondary. Combined income of £6k so felt very doable for us and I will hopefully never have to move again!!

[isthisit83]

Sounds very affordable and don't forget that as house values rise you should build more equity in the more expensive house over the long term. You can always downsize if you need to in 10 years.

[Bearpawk]

Depends how old you both are and how long you have to pay it off, but DP and I bring home less than you and our mortgage is 1150 pcm and we have more than enough left over ( no childcare though) I imagine you'd be fine

[onthefence23]

Very reassuring to hear other people in similar circumstances have made the same jump!

[BarrelOfOtters]

We went from no mortgage as had paid it off to back to having a mortgage. You get used to it and like you we'd both had pay increases. We've got a plan for paying it off and managed to fix for 5 years.

[onthefence23]

Early 30s. Aiming to overpay too over the years, 32 year mortgage and both expecting to retire at 65

[ThankmelaterOkay]

Isn’t a take home £4500 like £80k?

I don’t think you intend it Op, but to me this is a bit of a goady thread. Early thirties. Those incomes - you should pay your mortgage off in 15 years to be honest.

[ThankmelaterOkay]

Your husbands student loan is probably almost as much as your current mortgage payment! So if that’s not already done, when it will be, that will basically make up this new increase.