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Original poster

Is 200k deposit enough

122 replies

eyeeyeeyeeyeeye · 02/03/2025 06:50

I posted a thread the other day about stamp duty.
I inherited the house we're in (gifted) it's estimated approx £204 on Zoopla, it's had an extension kitchen diner, new garden, soon to have a larger porch and new windows on the front, so we've done alot of work to it.
We earn between us about 77k, something like that.
The house we love is £550k.
Do we stand a chance ???
This is all new to me, I've never had a mortgage as this was gifted and it's mortgage free.
Thanks all

OP posts:
crumpleduppieceofpaper · 02/03/2025 08:12

We are on a similar income (slightly more) and that kind of mortgage would scare the LIFE out of me. We only borrowed 200k for our last move and some months money is still not flowing from our ears! Infants become very expensive teenagers - essentially your food costs will double in 10-15 years, uni to pay for, cars, driving lessons, laptops and phones for all of you etc. don't saddle yourself unnecessarily with a large mortgage unless you have to. I'm forever grateful for our small home which means we can pay for stuff without sweating every month.

Twiglets1 · 02/03/2025 08:12

eyeeyeeyeeyeeye · 02/03/2025 07:28

So realistically what can we afford on our numbers ?

Better to ask a broker like the free ones at L& C suggested by a pp.

Bellibolt · 02/03/2025 08:13

How is your income split? If you have one high earner and one lower earner than you will be taking home less than 2 people who earn 38k each. I do think it's a bit too much. I would take a year to save as much as possible and then look again.

Laughinglama · 02/03/2025 08:21

I would say you can’t afford it, especially if you’re not paying a mortgage now and like your lifestyle.

We earn a similar amount (combined) and mortgage is £950 ( up £300 thanks to interest) we have x2 DC. Bills inclusive of mortgage/ food/ savings/ childcare is approx £3000. We have a good amount left for holidays and the fun stuff but that’s on paper and it never works out like that does it. If things crop up it can feel tight at times.

Ilikewinter · 02/03/2025 08:27

We also earn similar income to you, our mortgage is approx £1200pm, not a cat in hells chance I'd be comfortably paying £1800!
Personally I would look for somewhere more affordable.

MoserRothOrangeandAlmond · 02/03/2025 08:46

Unless you put at least 2 grand spare into your savings and also save for your future when you are mortgage free then go for it.
It doesn't sound like you do from your posts, putting 1500 in your joint account and you love holidays.

Me and my husband are jn our mid 30s and had a mortgage for 13 years, it has increased with interest rates and we borrowed way below our maximum we could borrow!

MoserRothOrangeandAlmond · 02/03/2025 08:48

Also our mortgage will be paid off at 55

Original poster
eyeeyeeyeeyeeye · 02/03/2025 08:51

Thanks all, reality check was needed.
I will see what the broker says also and go from there.

OP posts:
Ireolu · 02/03/2025 09:08

We had a 200k deposit OP but also earned just under twice what you do combined at the time we bought 5 yrs ago. Your deposit is great, the issue is combined income won't support such a large mortgage.

WhoAmITodayThen · 02/03/2025 09:18

Reugny · 02/03/2025 07:22

OP you are clearly good at budgeting just make sure you have a full survey on your new property and make sure you also get anyone you know who is a builder to have a look as well.

How can you tell?

Isobel201 · 02/03/2025 09:30

SquishyGloopyBum · 02/03/2025 07:23

Do you need to move? It sounds like you have a lovely house in a great area, you are mortgage free and have good savings.

To move will use up your savings, commit you to a big monthly mortgage for the next 25years.

This, it would be better to stay mortgage free if you can make your current house work.

JustGotToKeepOnKeepingOn · 02/03/2025 11:46

There was another thread on here last week about how so many people get sucked into what they want rather than living within their means.

You're in a good position financially, yet seem determined to risk it all to have the 'instagram house'.

You'd be far better off using your ££ on a house you can comfortably afford, so you can give your children great days out and holidays, and still have enough for you to have a great pension so you're not working until you drop to pay off a huge mortgage.

Original poster
eyeeyeeyeeyeeye · 02/03/2025 12:29

JustGotToKeepOnKeepingOn · 02/03/2025 11:46

There was another thread on here last week about how so many people get sucked into what they want rather than living within their means.

You're in a good position financially, yet seem determined to risk it all to have the 'instagram house'.

You'd be far better off using your ££ on a house you can comfortably afford, so you can give your children great days out and holidays, and still have enough for you to have a great pension so you're not working until you drop to pay off a huge mortgage.

There's something in my gut holding me back from selling this house. I just keep thinking why would we sell a mortgage free home to take on one...
the reasons for moving are in few years the infants will need their own bedrooms, at the moment they're sharing a big room between them. Ds10 has his own room, and we have a bedroom but it's downstairs.

OP posts:
Original poster
eyeeyeeyeeyeeye · 02/03/2025 12:30

We're a mid terrace so can't extend upwards. Don't want to extend out the front as we would lose the drive way. We could technically extend above the kitchen extension maybe, not sure if that would be allowed though

OP posts:
JustGotToKeepOnKeepingOn · 02/03/2025 13:03

If you need to move because you've outgrown your current home, that's fine. But you need to be realistic about what you can afford. It's easy to be wowed by a big house - we'd all love the dream home!

Your son is 10. In 8 years he could be away at university, leaving you with a huge mortgage to provide an empty bedroom.

Completelyjo · 02/03/2025 13:34

eyeeyeeyeeyeeye · 02/03/2025 12:30

We're a mid terrace so can't extend upwards. Don't want to extend out the front as we would lose the drive way. We could technically extend above the kitchen extension maybe, not sure if that would be allowed though

Mid terrace doesn’t mean you can’t extend upwards.

FondantFancyFan · 02/03/2025 15:58

Get your house valued by 3 estate agents as a more reliable method.

Original poster
eyeeyeeyeeyeeye · 04/03/2025 07:10

Going to see the broker today! Any advice?

OP posts:
BunnyWilliams · 04/03/2025 07:28

Absolutely use a mortgage broker. They are invaluable! We use Megan from FB Mortgages. She does charge a small fee but she's been absolutely invaluable and made the whole process so stress-free.
L&C offer a free mortgage broker which many people take advantage of. I didn't find them that useful when I spoke to them. They very much just cater to 'standard' situations. My friend used them and had a good experience though.

BunnyWilliams · 04/03/2025 07:29

eyeeyeeyeeyeeye · 04/03/2025 07:10

Going to see the broker today! Any advice?

Sorry, just seen this post after my previous!

Just be completely open and honest about your spending. They can only help you if they know all the facts.

Good luck!

Mwydryn · 04/03/2025 07:43

Brokers are great but the onus is on you to work out what's affordable. I am in a similar position to you OP- house I own outright is now on the market, we need more space. I earn about 80k. The amount lenders are willing to lend me is absolutely ridiculous- I could get a 300k mortgage and I'd default more or less straight away on the payments. I'm now looking at getting a mortgage of less than 100k, and less than £500 pcm.

Snoski · 04/03/2025 07:54

You are also completely ignoring how much kids cost as they go up through the teen years. There’s no way I would look at prices that high.

Thethingswedoforlove · 04/03/2025 08:01

I would try to factor in any realistic and likely increases in your income over the next 5 years. Stretching yourself now will be something future thanks you for if you can more comfortably afford it in a few years. We didnthis and im so glad we did. But we knew we would get pay rises and promotions etc.

Wibblywobblybobbly · 04/03/2025 08:07

Call London and Country. They look at the whole market and they don't charge a fee. They can give you an idea of what you can borrow.

Also think about future earning potential. Stretching yourself is much less scary if you've got good job security and a realistic prospect of future salary increases.

Wibblywobblybobbly · 04/03/2025 08:09

Call London and Country. They look at the whole market and they don't charge a fee. They can give you an idea of what you can borrow.

Also think about future earning potential. Stretching yourself is much less scary if you've got good job security and a realistic prospect of future salary increases.

Also, if you can buy something where you have a 40% deposit thst will give you much better rates.

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