sensible affordability?

lincroft1710 · 12 July 2017 at 4:20PM

On a net of £9K pm you surely cannot be worrying about a mortgage of £1.5K pm?

dimbo61 · 12 July 2017 at 4:28PM

Higher income = higher spending.
Are you and your wife spenders or savers ?
What part of the country do you live in ?
You are on the right track MSE is the best website to start.
Are you saving £2/3K a month

fairy_lights · 12 July 2017 at 4:35PM

mp80 wrote: »

We earn 185k between us, which equates to about 9k per month net once deductions, childcare contributions, etc are taken out.

So even after your mortgage you'd have 7.5k a month :eek:
Unless you've got a horrendous coke addiction I think you'll be fine.

[Deleted User] · 12 July 2017 at 4:37PM

fairy_lights wrote: »

So even after your mortgage you'd have 7.5k a month :eek:
Unless you've got a horrendous coke addiction I think you'll be fine.

Well.. the guy might be thinking forward towards the cost of private schooling.

OP, consider how much disposable income you've got at the moment. Would you be fine with £800 less a month?

mp80 · 13 July 2017 at 5:53AM

Thanks all for the replies. Ringo you are correct, I'm thinking 5+ years down the line, where circumstances may well be very different (high interest rates, maybe jobs different, etc) but I think we are going to try and move forward as nobody really knows and I guess you can't spend your life worrying what might be. We live in the NW and with this income we have a very comfortable lifestyle right now.

I'm personally extraordinarily risk averse when it comes to taking any sort of very long term debt where as the OH has the attitude of trying to push on as quickly as possible, which I can understand as we're probably at peak earning so won't get a better chance.

mp80 · 13 July 2017 at 5:59AM

TBagpuss wrote: »

If you're unsure, why not start overpaying your current mortgage by £1,000 a month (or put that amount into savings, if over payment is not an option on your current deal) for a few months to get a feel for what your budget will feeel like after the move?

That's quite a good idea, I think we're limited on overpayments as we're on one of those low interest rate fixed deals but worth looking into.

I'll be honest I don't really look at my balance, I know we can afford just about anything we buy without having to forensically balance the books. I'm quite disciplined though and only buy things that would be deemed 'non essential' after a period of time cooling-off to determine if I really do want it! Years ago I would have bought anything, and be skint a week after payday :cool:

getmore4less · 13 July 2017 at 8:38AM

Do a SOA and work out where you are wasting money money.

With £9k pm with a tiny £600pm on accommodation you should have oodles of cash.

Might be you are just wasting more than you think if £1,500pm is a problem/worry.

as above the trial run by putting aside the money now while you think about it will be the test.

work out what the new place will cost to run and make sure you are covering not just the mortgage but the bills.
I would aim for £2,500(less your current costs) and see how it goes,

end of the day it is just prioritizing your £9kpm if you have been spending it all then those priorities need to change if you want the bigger house.

Ask yourself where £108k has gone between Aug 2016 and July 2017 when less than £8k went on the mortgage?

Lizbragg33 · 13 July 2017 at 10:45AM

We pay £1450 on our mortgage and take home pay is around £4700 so I think you can easily afford to do it.
We were in a similar position to you last year paying a £400 a month mortgage but needed more space. I think it's the jump in monthly payments that scared us, an extra 1k a month but we are managing just fine and absolutely love our new house :-)
I'd say go for it.

mp80 · 14 July 2017 at 8:10PM

getmore4less wrote: »

Ask yourself where £108k has gone between Aug 2016 and July 2017 when less than £8k went on the mortgage?

Accruing savings, and also unfortunately paying off a 30k loan my wife had from her parents from years ago.

I still think you're right though, We buy £200 jeans, not £50 ones, etc. That will need to stop, definitely. Just the new house wasn't a priority at the time.

Marine_life · 14 July 2017 at 9:48PM

Me?

I would sit tight and put the money to early retirement ;-)

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sensible affordability?

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