Mortgage Madness

hpjpmpmp

:money: Hi
Can someone just reassure me. We have just sold our house for 165k. We owe 127k on it. We are in process of buying our dream home for 250k with a £220 mortgage on it.
My husbands salary is 35k and mine 28k per annum. We have no debt and have no children.

We have been offered a two year deal on a tracker mortgage with RBS rate 6.19% payments £1300 repayment per month over 30 years. Am i mad to buy this property? We have worked all figures out so many times and it seems ok but is that a huge mortgage or is it normal? Do people pay £1300 a month or what?!?

Need reassurance i suppose - couldnt sleep last night for worrying about it all.
We also have another property we are selling, although we have only £12k of equity in it.
HELP!!! PLEASE!

downs523

did you get any money off the asking price for your new home? if so how much. because in this falling market it would need to be quite alot. 1300 a month on a mortgage that size sounds reasonable.

getmore4less

Is this a one off house or are there other the same/similar around?

How much do they rent for?

How secure are your jobs?

If prices drop you will be in the place for some time and get into trouble if you lose one of the incomes or have to move allthough the money from the other place will tide you over for a lot of months if you can sell it.

One thing is sure house prices are not going up, so if it is cheaper to rent I would do that for a while and sit on the cash.

In time another dream home will come along probably cheaper than this one.

I would be looking at the £250k-£300k bracket and making offers at £250k no point in paying all that extra stamp duty.

hpjpmpmp

We intend to stay in this new house for many years. We have got £45k off the asking price already . Our jobs are secure.

hpjpmpmp

And yes - this new home is a one off house, its truly unique and our dream

downs523

hpjpmpmp wrote: »

We intend to stay in this new house for many years. We have got £45k off the asking price already . Our jobs are secure.

your sorted then, thats quite a good amount to get off, plus if your staying there for a long time its fine

beecher

You say you have no children, but if you are thinking of having any (sorry if this is too personal to talk about) then are you confident of affording the mortgage on one salary and maternity pay? Also child care costs would have to be looked at.

hpjpmpmp

The job i do i can work some from home. We do want children and soon - i think we are really careful with all finances so should be ok. Also this new property has a seperate annexe that we intend to let out as a holiday home as its in an area of outstanding natural beauty so that will bring in income.

wendybird

Is that the best mortgage you can get? I know First Direct's SVR is 6% now (or it was last week). We're moving to a 5.25% fixed with them. It may not seem like much, but does add up over time.

hpjpmpmp

whats a ten pound a day challenge? am new to all this!
will check out first direct - do they do 90% mortgages?
am i being crazy???!!!

wendybird

hpjpmpmp wrote: »

whats a ten pound a day challenge? am new to all this!
will check out first direct - do they do 90% mortgages?
am i being crazy???!!!

I'm not sure if they do 90%, to get their best deals you can only borrow up to 80%. You do have to have an account with them (I opened a current account just before I applied).

I'm not sure if you are being crazy or not - as long as you are being realistic about your budget and ability to pay the mortgage you are probably sane, just scared! Do a budget for when you have kids including loss of income and cost of childcare, etc. That should give you a good indication. We're trying for our first and the budget really helped me be realistic - we've started saving already for when our income drops while I'm on maternity leave.

The challenge is to earn 10 quid a day over a month on top of your regular income via e-bay, cashback sites, extra work, daily clicks, etc. There is a thread on the debt free wannabee board, it is usually on the first or second page.