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Original poster

Increasing mortgage payments

18 replies

daisydaisy21 · 19/04/2023 17:56

Is increasing mortgage payments from 8.5% of household net income to 30% of net income a stupid idea?
On paper we can afford it but we are comfortable at the moment and worry we might be sacrificing too much to make the house worth it.
But also, if we don't upsize now then when? We want to kids to benefit from more space while they are young too.

We just can't decide what is best for our family!
Mid twenties, 2 dc, no childcare costs (thank goodness for amazing grandparents)
We go back and forth with the idea of moving. There isn't much wrong with where we live, we'd just like more outdoor space for the kids, a drive etc.
We have a viewing booked for a great house but want to make sure we're doing the right thing.

Would tripling our mortgage with everything going on be a crazy idea?

OP posts:
OnlyFoolsnMothers · 19/04/2023 18:02

Everyone on MN will say no way and quality of life- but I say majority of my life is spent in my home so that needs to be the best it can be. So I would upsize to about that.

Original poster
daisydaisy21 · 19/04/2023 18:06

OnlyFoolsnMothers · 19/04/2023 18:02

Everyone on MN will say no way and quality of life- but I say majority of my life is spent in my home so that needs to be the best it can be. So I would upsize to about that.

That's a very good point. We do spend lots of time at home!

OP posts:
KievLoverTwo · 19/04/2023 18:06

daisydaisy21 · 19/04/2023 17:56

Is increasing mortgage payments from 8.5% of household net income to 30% of net income a stupid idea?
On paper we can afford it but we are comfortable at the moment and worry we might be sacrificing too much to make the house worth it.
But also, if we don't upsize now then when? We want to kids to benefit from more space while they are young too.

We just can't decide what is best for our family!
Mid twenties, 2 dc, no childcare costs (thank goodness for amazing grandparents)
We go back and forth with the idea of moving. There isn't much wrong with where we live, we'd just like more outdoor space for the kids, a drive etc.
We have a viewing booked for a great house but want to make sure we're doing the right thing.

Would tripling our mortgage with everything going on be a crazy idea?

Affordability stress tests are something like 33% of net income, so I say go for it. You will have better memories with your kids to cherish.

Also depends on your income. Ours will be more like 45% but we will still be left with over 2k disposable which is enough to overpay and save some.

CatOnTheChair · 19/04/2023 18:50

I think it depends on your income.
If you both earn 20k, so bring home 3k total a month, I think 30% is tight.
If you both earn 50k+, you are much mote likely to be able to enjoy the remaining money, even tho the mortgage is much more.
It is as much about what is left over as what it costs.

Original poster
daisydaisy21 · 19/04/2023 19:08

CatOnTheChair · 19/04/2023 18:50

I think it depends on your income.
If you both earn 20k, so bring home 3k total a month, I think 30% is tight.
If you both earn 50k+, you are much mote likely to be able to enjoy the remaining money, even tho the mortgage is much more.
It is as much about what is left over as what it costs.

Very good point!
After bills, food, kids activities etc we would have £750 a month left after the bigger mortgage which doesn't sound loads but I appreciate that's probably more than some people have.
I do only work 14.5 hrs a week so there is scope for me to increase my hours which I plan to do when our youngest is in school but don't want to have to rush into it.

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EstherHazy · 19/04/2023 19:14

Not mad at all - anyone renting could only DREAM of your current set up with such a lot of disposable income. 30% should be completely manageable (though of course a lot depends on your commitments) - I'd snap at the chance of only 30%!

OnlyFoolsnMothers · 19/04/2023 22:00

Have you calculated the increased bills that will come with a bigger house?

Original poster
daisydaisy21 · 20/04/2023 09:01

OnlyFoolsnMothers · 19/04/2023 22:00

Have you calculated the increased bills that will come with a bigger house?

Yes we did that last night 🙂

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DrySherry · 20/04/2023 09:28

Your in a good position to take advantage of the current market imo. But wait, until next spring at the earliest. Its important to recognise that moving up the ladder in a falling market doesn't make good economic sense. Wait until the falls have leveled off and interest rates at least have stabilised or are showing signs of reducing. Your more expensive new house will be in cash terms a much better deal by next year ;)
Don't rush now if everything is OK where you currently are. Better opertunities to move up are coming.

Londongent · 20/04/2023 09:52

At your age your earning are only likely to go up in the medium to long term so in theory you will be at your worst off in the first couple of years of moving then things will get easier financially.
So bearing that in mind I think it makes sense as long as you find the right house for you.
As you and a PP said you spend a lot of time at home, it may as well be the best one you can comfortably afford.

FoxFeatures · 20/04/2023 09:54

What about saving the extra each month and then paying a chunk off each year - if your mortgage allows.

Original poster
daisydaisy21 · 20/04/2023 11:07

This is all really great advice. Thank you!

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rcat74 · 20/04/2023 12:43

We are increasing to 28% of our income only I work as a locum so my work is not guaranteed and it is nerve racking. We desperately need the extra space downstairs and outside and think our standard of living will improve.

mac1974 · 20/04/2023 12:56

I think it's a good idea to maximise what you can on property. We love our house so much but the reality is that it is potentially part of our pension. We've had times where we've had lots of disposable income & times where it has been tighter but we've managed.
One this to consider is your kids....mine are now 8&12 and their hobbies cost us about £300 per month which when they were very small was not something we really had to think about but like a PP said, your income is likely to increase.

Original poster
daisydaisy21 · 20/04/2023 13:15

Thank you.
We are desperate for more downstairs and outside space more than anything.
I'd like to think our salaries will increase. I've only just returned to work pt after being sahm for 3 years and my husband has lots of opportunity for progression in his role.
It's just a big scary decision!!

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Flimflamma · 20/04/2023 13:44

We’ve recently done very similar and we are ten years older than you. We’ve always even far too cautious with our mortgage and have lost out as a result. This was our final chance to get the house we wanted in the location we wanted. It’s been a brilliant decision, yes money is tighter but we spend so much time at home and are much happier there.

You need to factor in some money for kids hobbies in that budget though. Mine are 5&10 and activities are about £200 per month.

Sundaefraise · 20/04/2023 13:48

I would do it, you are only mid-twenties, definitely too young to just settle for what you have got. Also, if you are not being hammered by nursery fees, then I have found having teens is the most expensive time, so I would do it now before your kids get to that stage.

Original poster
daisydaisy21 · 20/04/2023 13:56

Thank you again! Some really good advice!

Dc are 6&2.
Youngest does various toddler groups but aren't very much money and I take her swimming myself once a week. 6 year old swims and dances which is about £110 per month for both so I'm assuming her sister will do something similar which would be affordable

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