Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Original poster

Anyone maxed on a house?

117 replies

ChubSeedsYorkie · 21/07/2024 10:06

We looked at a house yesterday that is top of budget. It has been on a few weeks and I was hoping it would sell quickly so I could forget about it but it didn’t so I booked a viewing.

We viewed it and I thought the price would put me off and I’d decide it wasn’t worth it, but very much just wanted to get it out my system as it’s in our dream location.

My husband loved it and said it’s got everything we need. Lovely garden which is important to us, two reception rooms and utility room. Plus 5 bedrooms (we’d be happy with a 3/4 bed).

It was a bit more tatty than the photos let on but it’s perfectly liveable, a family of 6 currently very happily live in it.
If it was a 4 bed and 50k cheaper I’d be all for it. But the price is really worrying me.

Its on at £635k.

Our mortgage would be £480k. Hopefully a bit less if we offered under asking. I’m going £610-£620k given it’s not been on a little while now and the vendors have found an onward purchase.

We also have a little one starting nursery in January and would love one more child. Still doable on this house but we’d be quite stretched.

Mortgage would be about £2200 a month based on porting our current mortgage and borrowing a bit more. Our income is about £6k a month. Nursery fees once 30 hours come in is £500ish. I do take some salary as shares so if we were really struggling I have about £300 extra a month I could take as cash.

Wed also wipe out our savings on fees and stamp duty. I’ve calculated to have about £5k left over.

Has anyone over extended themselves for a house? Did you regret it? Or is it the best thing you’ve ever done?

Im such a risk averse person that I think it’s maybe too much but the house is ideal in that wee never have to change the layout etc. it is all cosmetic work we can do over 10 years to get it to our taste.

Edit: just to add someone else viewed the house yesterday and I’m hoping they put an offer in that gets accepted just so we don’t have to make this decision. I do wonder if that a sign it’s not the one for us.

OP posts:
Jessforless · 21/07/2024 10:08

If you’re planning another child wouldn’t this affect your earnings? At least temporarily?

Monkeysatonthewall · 21/07/2024 10:09

Personally, I wouldn't.
Doesn't matter how much l liked the house, wouldn't be buying a 5 bed if 3 or 4 bed would do.

Overthebow · 21/07/2024 10:10

£2200 a month is a lot but it depends on your income and opportunities for higher salaries. We did max ourselves out for our first house but we knew our income would rise so we wouldn’t always be stretched.

Original poster
ChubSeedsYorkie · 21/07/2024 10:10

Jessforless · 21/07/2024 10:08

If you’re planning another child wouldn’t this affect your earnings? At least temporarily?

Not really. I get 6 months full pay on maternity leave and I’d take 9 months. 3 at statutory pay and we could afford the 3 months. We wouldn’t start trying for another until next summer.

OP posts:
Janedoe82 · 21/07/2024 10:11

We take home 7k and mortgage is £1200. It’s grand but I wouldn’t say we are living it up- children are really expensive and with the cost of living etc there isn’t much left over. I would think carefully.

watchuswreckthemic · 21/07/2024 10:12

What about when interest rates rise? I think it's a big push but I'm conscious with these threads that my first mortgage interest rate was 5.3%

Janedoe82 · 21/07/2024 10:13

Other think to think about is the longer term value of the house. If by doing it up you are going to substantially increase the value I would consider it as it would be a good asset.

Original poster
ChubSeedsYorkie · 21/07/2024 10:13

Overthebow · 21/07/2024 10:10

£2200 a month is a lot but it depends on your income and opportunities for higher salaries. We did max ourselves out for our first house but we knew our income would rise so we wouldn’t always be stretched.

Edited

I’m also thinking this but then worry it puts pressure on us. My next job/promotion I could be on £100k and my husband is currently doing a qualification that will boost his employability in the future but I’m very much of the mindset that that just hasn’t happened yet so we should wait.

OP posts:
LindaDawn · 21/07/2024 10:14

If you have done the sums carefully, double checked them and love the house and think there is nothing else out there that you would like better then go for it. Also do you have quite secure jobs? And maybe help from family if the worst were to happen. Maybe get income protection?

Original poster
ChubSeedsYorkie · 21/07/2024 10:16

watchuswreckthemic · 21/07/2024 10:12

What about when interest rates rise? I think it's a big push but I'm conscious with these threads that my first mortgage interest rate was 5.3%

Doesn’t worry me in the short term, perhaps the long term. I also think you can extend the term if it got tricky etc.

I am also a bit less impacted by rates as I get preferential rates at work as I work for a bank. We’d also lock in for 5 years to get us through most of the nursery years. I think if nursery fees weren’t a thing we’d go for it.

OP posts:
rainingsnoring · 21/07/2024 10:18

I really wouldn't stretch yourself financially at the moment in order to afford a home that is much bigger than you need and particularly if you want another child.

FragmentedProvision · 21/07/2024 10:19

We did and though the first couple of years were tough and stressful, we have no regrets and a house we love in our perfect location.

Original poster
ChubSeedsYorkie · 21/07/2024 10:19

LindaDawn · 21/07/2024 10:14

If you have done the sums carefully, double checked them and love the house and think there is nothing else out there that you would like better then go for it. Also do you have quite secure jobs? And maybe help from family if the worst were to happen. Maybe get income protection?

Yep both secure jobs. Both professionals and been there a while.

No income protection but my family I think would help in a worst case scenario. And my parents occasionally gives us lumps of money which I know you should not expect or rely on but at the back of my head I know if the worst happened we’d be ok in that sense.

OP posts:
Original poster
ChubSeedsYorkie · 21/07/2024 10:20

FragmentedProvision · 21/07/2024 10:19

We did and though the first couple of years were tough and stressful, we have no regrets and a house we love in our perfect location.

This is what I’m hoping. We’d be there for decades but obviously don’t know if we’ll feel like that until we move. It’s so difficult to know.

OP posts:
FourToTheMFingFloor · 21/07/2024 10:20

We have a similar income and no way would I touch those monthly payments; you'd have no money left to enjoy life.

RosesAndHellebores · 21/07/2024 10:22

We did but in 1992 and at the bottom of a very different market. We first viewed the house six months earlier and it was beyond budget. Nothing else came close then the developers went bust and it was available for £50k less. I never thought I hope someone else gets it so a decision needn’t be made. We couldn’t afford it, then we could just. It was still £25k over the nominal budget.

other optics - we were planning to start a family and could still just about do it on one salary but on brass tacks, dh’s career was on an upward trajectory, we thought it a forever home and the location was perfect but temporarily blighted and we had over 50% equity. It was recently developed so no immediate refurbishment needed.

We sold it 22 years later for vast multipliers more but maxed the price by redeveloping it to top end contemporary standards.

TemuSpecialBuy · 21/07/2024 10:22

Is your income 6k net or gross.

if net 6k is okay.
we have a similar mortgage and need 10.k net as 2x ft childcare at approx 4k net pm

we went for 30 year term and we are happy that if circs didn’t change that we might have to downsize early when kids were at uni as we didn’t want to pay full amount on the mortgage

in your circumstances I’d say it’s inadvisable unless one of you expects substantial career progression in 2-4 years… like 30-40k gross

ViciousCurrentBun · 21/07/2024 10:23

We did the opposite and bought under budget, granted it was 1999 so house prices were much cheaper. But I have seen the outcome of over extending. One friend’s partner became unwell and has not been able to work for close to 20 years. She has had to pay for almost everything and there is no spare money. When young you don’t think of disaster.

Interest rates are actually at the sort of rate they should be. The low rates we had previously contributed to the shitshow that is the housing market now.

You have no flexibility and would wipe out your savings, income protection doesn’t always pay out either. Fine print has to be read in detail for any kind of policy, so it’s a hard no from me,

Original poster
ChubSeedsYorkie · 21/07/2024 10:25

TemuSpecialBuy · 21/07/2024 10:22

Is your income 6k net or gross.

if net 6k is okay.
we have a similar mortgage and need 10.k net as 2x ft childcare at approx 4k net pm

we went for 30 year term and we are happy that if circs didn’t change that we might have to downsize early when kids were at uni as we didn’t want to pay full amount on the mortgage

in your circumstances I’d say it’s inadvisable unless one of you expects substantial career progression in 2-4 years… like 30-40k gross

Edited

Net, if it was gross it would definitely be unaffordable.

OP posts:
RosesAndHellebores · 21/07/2024 10:25

ViciousCurrentBun · 21/07/2024 10:23

We did the opposite and bought under budget, granted it was 1999 so house prices were much cheaper. But I have seen the outcome of over extending. One friend’s partner became unwell and has not been able to work for close to 20 years. She has had to pay for almost everything and there is no spare money. When young you don’t think of disaster.

Interest rates are actually at the sort of rate they should be. The low rates we had previously contributed to the shitshow that is the housing market now.

You have no flexibility and would wipe out your savings, income protection doesn’t always pay out either. Fine print has to be read in detail for any kind of policy, so it’s a hard no from me,

I disagree. We took the risk on the basis that if the worst happened we could sell and move sideways for a lower price. However we were in zone 2, London.

Karmatime · 21/07/2024 10:26

How much extra is it compared to houses you have been looking at?
If it saves you a move in the future then it could be worth it in the long term and you get to live in the house that you love.
However if it’s maxing out your savings get a very thorough survey.

ViciousCurrentBun · 21/07/2024 10:26

What jobs though? DH and what was my sector but I have now retired now has redundancies or severance schemes in virtually every UK University, a decade ago this was unthinkable. So far three of my friends in that sector have taken redundancy granted they were all very late fifties and one of 61 so it was a good time for them.

TemuSpecialBuy · 21/07/2024 10:27

ChubSeedsYorkie · 21/07/2024 10:25

Net, if it was gross it would definitely be unaffordable.

Show quote history

Yeah suspected so but you never know on here 😅

The extra child is what will make it tricky…it depends on childcare costs

Original poster
ChubSeedsYorkie · 21/07/2024 10:29

ViciousCurrentBun · 21/07/2024 10:26

What jobs though? DH and what was my sector but I have now retired now has redundancies or severance schemes in virtually every UK University, a decade ago this was unthinkable. So far three of my friends in that sector have taken redundancy granted they were all very late fifties and one of 61 so it was a good time for them.

I’m an actuary so earn well and I’m still relatively junior. I qualified a couple of years ago so next role I’m hoping will be a step up. I’m in model development so lots of coding skills that are transferable if the insurance sector suffered.

Husband is a facilities manager for schools. So would always be needed.

OP posts:
Alwaystired23 · 21/07/2024 10:30

You say it's a bit tatty. What needs doing to it? Do you think you could afford to do the home improvements you need? To be honest, if you're in 2 minds, I'd say no. I think you need to be 100% in when buying a house. We viewed a more expensive property that would have stretched us. We put in an offer, but the seller took the house off the market. We bought another home that was cheaper, had more land, and I just fell in love with it. We are now in a position where we are overpaying on the mortgage. Looking back, I'm so glad we didn't get our 1st offer accepted. That house was also more tatty than the photos. The bathrooms needed redoing in the next few years. It would have needed a new kitchen, etc.