Page 2 | Mortgage amounts

JustOneMoreSec · 2023-05-29T15:01:59+00:00

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??

midsomermurderess · 29/05/2023 18:26

I agree with other posters, ‘quite like’ surely isn’t good enough reason to stretch yourself financially to a point you aren’t comfortable with.

toothbrusher · 29/05/2023 18:29

Our mortgage is currently 20% of our take home, but we also have massive childcare bills. I wouldn't stretch tbh but also, if you're both earning that much presumably you have the brains to work out your budget 🤷‍♀️

Quitelikeit · 29/05/2023 18:38

It must be a pretty special house for that price. The only thing I would say is your council tax is going to be expensive as is your gas and electricity bills.

What do you think we are talking? Maybe £600?

That would leave you £3400 a month to play with

im guessing you spend around 1300 on food?

that leaves 2100 a month - extra curricular activities?

then savings/fuel/ utilities

you’d manage but you wouldn’t be living in luxury that’s for sure!

Well not until you sell it (then you can live in luxury!!)

Original poster

JustOneMoreSec · 29/05/2023 18:50

toothbrusher · 29/05/2023 18:29

Our mortgage is currently 20% of our take home, but we also have massive childcare bills. I wouldn't stretch tbh but also, if you're both earning that much presumably you have the brains to work out your budget 🤷‍♀️

The problem is that on paper it works out. After bills we've worked out that we'll have about 1k for savings / optional expenses (going out, birthdays, trips, meals...)
We will have to make some compromise for sure.
I totally don't want to compare my situation with others, just came here to see how other people do it. People are always very coy to talk openly about money so just wondering if it's something other people are comfortable with

OP posts:

Original poster

JustOneMoreSec · 29/05/2023 18:52

Quitelikeit · 29/05/2023 18:38

It must be a pretty special house for that price. The only thing I would say is your council tax is going to be expensive as is your gas and electricity bills.

What do you think we are talking? Maybe £600?

That would leave you £3400 a month to play with

im guessing you spend around 1300 on food?

that leaves 2100 a month - extra curricular activities?

then savings/fuel/ utilities

you’d manage but you wouldn’t be living in luxury that’s for sure!

Well not until you sell it (then you can live in luxury!!)

Council tax and bills will be similar to now.

Mortgage will go up by about £1.3k

OP posts:

Megamopyeah · 29/05/2023 18:58

How much do you save a month now? Take off the extra 1.3k the new mortgage would be and surely that gives you a rough idea what you’d have left per month.

EggInANest · 29/05/2023 19:10

Work put your monthly budget, based on life in the house.

Increased energy bills for a bigger house?
ditto house insurance and Council
TAx.
And maintenance.
All you current expenditure
Savings
Contingency.

Does it work?

EggInANest · 29/05/2023 19:11

In my book £4k after housing cost should be OK, but only you can do your budget.

KatieKline · 29/05/2023 19:20

I personally wouldn't go for a mortgage at that percentage of household take home.

We always have used the rule that one of us should be able to pay the mortgage just in case, and that has stood us in good stead for the past 21 years, and we have gone through 4 rounds of redundancies (2 each).

FrownedUpon · 29/05/2023 19:25

We have a similar income & I wouldn’t spend that much on the mortgage. We pay extra into pensions & go on holiday a lot though.

NicLondon1 · 29/05/2023 19:49

You could also try putting in a cheeky offer… get it down a little bit if poss?

OhcantthInkofaname · 29/05/2023 19:51

Simply - yes. How scary if one of you would lose a job..

creamteaandfishcakes · 29/05/2023 19:58

I’m currently in the same position. About to buy at the same repayment and take home amounts. Does feel a lot but I’m not sure where the OP lives but for us we would be paying near enough the same amount in rent. Well £2.5k. That’s how I am justify the amount to myself.

x

Wednesdayonline · 29/05/2023 20:33

We take home about 35% less than you and our mortgage is going to be 1350. Will leave us with about 1400 a month after all expenses including spending money and that is way more than enough for us. We don't spend much generally. Everyone is different but as you've said you'll have 1k left that seems loads to me, and if you think you can be comfortable with that then go for it. People have different priorities and if home is a big one for you it seems worth it :)

Pteryl · 29/05/2023 21:13

After savings, pensions, work travel, company car, and phones we take home £8k a month (not including bonuses, but we put those straight into our pensions to save tax). We upped our mortgage repayments to £2k from £1.2k 2yrs ago to pay it off sooner as we are looking to move this year. We are also looking to buy our ‘forever’ home and think £3k would also be our limit.

At £2k currently we are feeling the pinch as we haven’t changed our lifestyle. We have nursery fees also, so that doesn’t help. We’re debating what to do now as we’re thinking of having another child but currently can afford our mortgage and bills easily on one salary. It would be a big jump, long term benefit, but I would certainly miss the holidays and being carefree. I’m not sure if children do get cheaper as they get older judging by some of the posts on here!!

Twiglets1 · 30/05/2023 05:17

Pteryl · 29/05/2023 21:13

After savings, pensions, work travel, company car, and phones we take home £8k a month (not including bonuses, but we put those straight into our pensions to save tax). We upped our mortgage repayments to £2k from £1.2k 2yrs ago to pay it off sooner as we are looking to move this year. We are also looking to buy our ‘forever’ home and think £3k would also be our limit.

At £2k currently we are feeling the pinch as we haven’t changed our lifestyle. We have nursery fees also, so that doesn’t help. We’re debating what to do now as we’re thinking of having another child but currently can afford our mortgage and bills easily on one salary. It would be a big jump, long term benefit, but I would certainly miss the holidays and being carefree. I’m not sure if children do get cheaper as they get older judging by some of the posts on here!!

It depends if they go to private school or not. If state educated then they do get cheaper as they get older with no childcare fees.

OrderOfTheKookaburra · 30/05/2023 05:49

If it works out on paper that's good. But the proof is in living it. Give yourselves 12 months with putting the additional money away into a savings account and if you ever need to touch it, then you can't afford it.

afterdropshock · 30/05/2023 11:25

How is having £4k per month to live on after mortgage difficult?

afterdropshock · 30/05/2023 11:26

Unless your job is not secure.

GiveupHQ · 30/05/2023 11:27

afterdropshock · 30/05/2023 11:25

How is having £4k per month to live on after mortgage difficult?

Really?

depends on your financial commitments ie school fees, loan repayments, whether supporting parents etc

Quitelikeit · 31/05/2023 13:57

afterdropshock · 30/05/2023 11:25

How is having £4k per month to live on after mortgage difficult?

Believe me the money just goes!

council tax, and utilities are usually more expensive for a start

fuel, food, extra curricular activities, school lunches

holidays, clothes, savings, Christmas, eating out,

MakeADecision · 01/06/2023 16:56

We bring in a similar amount and our new mortgage is going to be £1.5K a month, going up from £600 and it’s making me slightly anxious. £3K would be too much. We have 2 primary aged kids as well.

SweetSakura · 01/06/2023 19:09

Twiglets1 · 30/05/2023 05:17

It depends if they go to private school or not. If state educated then they do get cheaper as they get older with no childcare fees.

Show quote history

Yes but if state educated I'd want to have money spare ideally for decent extra curricular activities and tutors etc. So it's still worth not having it all locked up in mortgage payments

(We have a bit higher household income and our mortgage is £1.3 k/mth which is quite tolerable but I definitely wouldn't want to double it)

Michmash37 · 20/03/2024 10:14

Hi There, We are in exactly the same position currently and I was wondering if you went for the house? and how your situation has been since? Thanks Michelle

LindaDawn · 20/03/2024 13:23

I would go for it. Sounds like you can afford it.