Mortgage amounts

[JustOneMoreSec]

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??

3k per month isn't much...what matters is that you won't go bankrupt should you or your partner be made redundant...

So we didn't go for it in the end. We decided to pull out, mainly because of the uncertainty of interest rates this time last year.
We have now sold again and found another house that we love. Mortgage payments have come down a bit and our salaries have gone up a bit, so in retrospect it was a good decision! We'll still be stretching ourselves a bit, but with an income of about 8k and a mortgage of £2,700. Wish me luck!!

Hi Cream Tea, I saw your reply about the mortgage last year having similar payments of 3k a year and a take home income of 7k. I just wondered do you have kids? And how are you finding it? Thanks

Thanks for your reply! Sounds like it all worked out for the best in the end! I’m still nervous of our situation but not sure how we will move to a bigger house without a bit of a stretch at the start!

Our take home is more than that but mortgage is £2000. We do have 2 other mortgaged flats we rent out, but if we couldn't get tenants our total mortgage would be pushed to £4k which is >40% of income. We could always drop to interest only mortgage on the rentals or sell them so it doesn't worry me. But spending so much on one mortgage (which is your main home) would. Because your main home is not an asset you can liquidate in emergencies cheaply or easily - no matter how much equity you have in it. All it takes is one medical emergency or accident to scupper savings and future payments.

It depends on your risk appetite really.