panic - am i borrowing too much?

luckyfool

Did you already have an agreement in principle with HSBC? My understanding is that their income multiples are very low, so they would have been unlikely to offer you enough for what you require anyway.

As long as you intend to stay there for the medium to long term, I would agree that fixing for at least 5 years would be the way to go.

pip27

No i dont think i had an agreement in principle. But they did go over my income and the girl seemed to think they would lend me 90. It was a good deal and i am going to see them on saturday to see what they can offer. I really want a five year fixed just so i can budget for the future. I'm thinking that as my salary goes up the raitos will be more in line in a few years anyway.

benjo

You probably cant live with relatives for ever, so you have a couple of choices, rent for £700 a month or buy at (currently)£550 a month + insurances + money for house maintainance = works out pretty equal if you choose products carefully.

You then have 5 years to make a decision about what you will do next, ie sell, down size (assuming you are not in negative equity), stay where you are etc.

During that 5 years you can make your upcoming decision easier to make, rent out your room and bank/overpay whatever you can, even small overpayments make a difference. Supplement your income, perhaps you may be in a position to go full time in a few years, perhaps you could do some privite teaching, I paid my sons chemistry teacher £25 an hour for help in the run up to his exams. Working in the school holidays - maybe thats a possibility. That should help ease your worries by building up your buffer again.

It is a frightening decision to make, especially if you are on your own and have nobody to bounce ideas off - goodluck, I think you are being sensible in taking it all seriously, but I also think there are options open to you to build up your savings/buffer in ways you perhaps havent explored yet.

dimbo61

Some times you just have to make the big decisions yourself.
You are right to think long term and a 5 year fix gives you reasonable security as your kids will be 18 and 15 when that deal ends.
Just use Martins website for everything you spend money on and dont be in a big rush to buy SKY, broadband, new items for the house.
GOOD LUCK