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  • FIRST POST
    • xapprenticex
    • By xapprenticex 18th Jun 17, 5:30 PM
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    xapprenticex
    question regarding salary and expenses.
    • #1
    • 18th Jun 17, 5:30 PM
    question regarding salary and expenses. 18th Jun 17 at 5:30 PM
    i could ask this on another board but i like you guys the most.

    im starting to pay off my debts so i can get a mortgage. i can see myself settling down soon and was wondering, is it feasible for one salary to go on the mortage and the other salary to go on living expenses and food?

    with that a mortgage can easily be paid off in less than 10 years, is this a common thing? im sure i didnt come up with it.
Page 1
    • getmore4less
    • By getmore4less 18th Jun 17, 6:18 PM
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    getmore4less
    • #2
    • 18th Jun 17, 6:18 PM
    • #2
    • 18th Jun 17, 6:18 PM
    It's called budgeting

    Why not put one and 1/2 salary and pay it off even quicker.

    You can pay as much as you want towards the mortgage.

    THe trick is to keep the contractual payment small
    • YorkshireBoy
    • By YorkshireBoy 18th Jun 17, 8:29 PM
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    YorkshireBoy
    • #3
    • 18th Jun 17, 8:29 PM
    • #3
    • 18th Jun 17, 8:29 PM
    In my opinion it doesn't make sense to overpay a 2% APR mortgage when you could save that overpayment amount and receive 5% AER on it.

    Use the (built up) savings account balance(s) if necessary at remortgage time, ie if doing so will allow you to drop a LTV interest rate tier.
    • xapprenticex
    • By xapprenticex 18th Jun 17, 8:30 PM
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    xapprenticex
    • #4
    • 18th Jun 17, 8:30 PM
    • #4
    • 18th Jun 17, 8:30 PM
    thats true, but i would want to have a certain quality of life too (for better or worse). in the above scenario i could easily put 25k per year on the mortgage but thinking about it, most money goes on rent which i wouldn't have so more could go on the mortgage.

    contractual payment small... do you mean your monthly payment?
    • xapprenticex
    • By xapprenticex 18th Jun 17, 8:31 PM
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    xapprenticex
    • #5
    • 18th Jun 17, 8:31 PM
    • #5
    • 18th Jun 17, 8:31 PM
    In my opinion it doesn't make sense to overpay a 2% APR mortgage when you could save that overpayment amount and receive 5% AER on it.

    Use the (built up) savings account balance(s) if necessary at remortgage time, ie if doing so will allow you to drop a LTV interest rate tier.
    Originally posted by YorkshireBoy
    whow, pretty advanced stuff (for me), def something to look into thanks,
    • Sanne
    • By Sanne 18th Jun 17, 8:34 PM
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    Sanne
    • #6
    • 18th Jun 17, 8:34 PM
    • #6
    • 18th Jun 17, 8:34 PM
    I suppose it depends what the salaries are and how high the mortgage is!

    We're down South and in the town I'm looking there's hardly any 2 bed flats under £300k. I have a good income and currently save a bit more a month than my other half earns. So one salary on the mortgage + housing related costs such as insurances and one for all other expenses (+ some savings - the difference of our current rent and the mortgage is about £500 which we could put away) is feasible for us. Paying a mortgage off in 10 years or less is most definitely not!
    • xapprenticex
    • By xapprenticex 18th Jun 17, 8:47 PM
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    xapprenticex
    • #7
    • 18th Jun 17, 8:47 PM
    • #7
    • 18th Jun 17, 8:47 PM
    I wouldn't expect it to be more than 200k (first house), mortgage would be a little less due to deposit. Yeah 300k in ten years is a bit much, 200k is do-able (not a real word)
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