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Original poster

Mortgage amounts

55 replies

JustOneMoreSec · 29/05/2023 16:01

We have seen a house that we quite like, but it's a bit higher than our price. Our total net income is about £7k per month. This house would push our mortgage to about £3k. Is that an unreasonable amount to spend on a mortgage??

OP posts:
GiveupHQ · 29/05/2023 16:04

Fgs

seriously?

you and your partner must be at least semi fully functioning to be employed andYou honestly think anyone has even close to sufficient detail to answer your question?! 😂

DogInATent · 29/05/2023 16:11

You only 'quite' like it and need to asking if you should overstretch to make an offer?

If you're not gushing about loving it and seeing it as your dream forever home then you should not be thinking about pushing the budget you'd determined was affordable now and in the future.

marblesnottobefound · 29/05/2023 16:14

Only unreasonable if you can't afford it, or if affording it would negatively impact your life (by cutting costs which are crucial to your quality of living.)

Leo227 · 29/05/2023 16:14

we bring in more than that and 3k would be too much for us. but if you don't have kids /dogs/holidays/run 2 cars etc maybe OK??

Lcb123 · 29/05/2023 16:24

impossible to say without knowing your situation otherwise. Personally I think that’s too much, but depends if your other outgoings are low

Ccvyvyan · 29/05/2023 16:27

Need more info op, do you have big expenses like childcare etc? I don’t think it’s a great time to be over stretching.

Original poster
JustOneMoreSec · 29/05/2023 16:37

Thanks.
Sorry a bit more background. We have 2 kids 7. & 9 - both in the local primary school. 2 cars but not huge financial commitments. We do a couple of holidays a year but my family lives abroad so not mega expensive. Don't have any expensive tastes but we do spend quite a lot eating out and in our weekly shopping, which we could save a bit if we were more careful.
I appreciate it's not a lot of information but was wondering what were peoples gut feeling about it.
We do love the house. It's the right house in the right place. It definitely feels like a house suitable for the next 15-20 years.
We are quite savvy with money and always had savings and had a mortgage that we could serve if one of us lost their jobs, but we're quite secure work wise at the moment.
We feel that if we go for a cheaper house it won't tick all the boxes as this one does...
Thoughts?

OP posts:
NoDrinksForMe · 29/05/2023 16:55

Is it 3k a month at current interest rates? Would it be affordable at 6/7%?

What are your pensions like?

Does it need any work?

What about stamp duty, solicitors fees, any new furniture etc?

igglo · 29/05/2023 16:57

General rule of thumbs is that mortgage payments should be no more than 40% of take home pay. So you're going above that limit.

That is the average for everyone from singletons to retired child free people. You're at the stage with highest expenses (until the children become independent) so I would be limiting mortgage payments to 20-30% take home pay.

Original poster
JustOneMoreSec · 29/05/2023 17:12

NoDrinksForMe · 29/05/2023 16:55

Is it 3k a month at current interest rates? Would it be affordable at 6/7%?

What are your pensions like?

Does it need any work?

What about stamp duty, solicitors fees, any new furniture etc?

We would fix at 5 years. In the current market seems like the best bet.

We have quite good savings which will pay for all the expenses and we'll still have some left for unexpected expenses, but we wouldn't be able to save much.

DH has a good pension. Also the idea is to overstretch now so we can sell when we retire and downsize then

OP posts:
Ccvyvyan · 29/05/2023 17:17

I wouldn’t if it means I’ll also obliterate my savings but not sure if I’m misreading.

Itsanotherhreatday · 29/05/2023 17:20

Most people have rent at 50% salary - salaries will rise in the next 5 years and I would say go for it!

Twiglets1 · 29/05/2023 17:20

GiveupHQ · 29/05/2023 16:04

Fgs

seriously?

you and your partner must be at least semi fully functioning to be employed andYou honestly think anyone has even close to sufficient detail to answer your question?! 😂

Lol - another Mumsnet special. Expecting complete strangers to understand all the details of the situation in order to make sensible responses with .... absolutely no details given at all 😂

CatsOnTheChair · 29/05/2023 17:48

Well, if you look at your current mortgage plus (long term) savings each month, how different is that to your proposed mortgage?
It looks on the high side as a percent, but would still leave you with 4k a month to spend - which is a lot more than many households earn. I guess it depends how you spend, and what you might like to reduce spending on!

AnneElliott · 29/05/2023 17:50

We bring in similar per month and our mortgage is £1800. I wouldn't feel comfortable with a £3k commitment on a mortgage although everybody is different.

SwedishEdith · 29/05/2023 17:50

JustOneMoreSec · 29/05/2023 17:12

We would fix at 5 years. In the current market seems like the best bet.

We have quite good savings which will pay for all the expenses and we'll still have some left for unexpected expenses, but we wouldn't be able to save much.

DH has a good pension. Also the idea is to overstretch now so we can sell when we retire and downsize then

Show quote history

What about your pension? What's the plan for that?

peacelemon · 29/05/2023 17:53

How much are you paying at the moment? Will it male a big difference for you to pay that much more?

SweetSakura · 29/05/2023 17:58

I think it's a fairly stupidly high percentage of your income. But only you can know if other factors make it less unwise (eg. If salary rises are imminent)

Ccvyvyan · 29/05/2023 18:08

Itsanotherhreatday · 29/05/2023 17:20

Most people have rent at 50% salary - salaries will rise in the next 5 years and I would say go for it!

I didn’t know salaries were set to rise.

arlequin · 29/05/2023 18:11

I would do it. Our net income is similar and mortgage is 2.55k per month. You'll make it work!

Ccvyvyan · 29/05/2023 18:12

Live laugh love.

kerryno · 29/05/2023 18:12

I'm not sure why you think 3k out of 7k is overstretching...

kerryno · 29/05/2023 18:14

General rule of thumbs is that mortgage payments should be no more than 40% of take home pay. So you're going above that limit.

But the amount makes a difference. Someone bringing 1k a month with 40% mortgage payments will struggle a lot more than someone on 5k or 7k.

Flunkey · 29/05/2023 18:15

I'd go for it if you love it and see it as a long term home and pension investment to downsize later. If you have no expensive tastes and you're both homebirds then sounds great.

kerryno · 29/05/2023 18:15

You will get a lot of "we earn 20k a month but would not feel comfortable with a mortgage of more than £500" but for young families back in the real world you generally need to spend some of that income!