Overstretching?

SmartGirl_2

There are quite few posts on this board warning people not to overstretch themselves with their mortgages. What is considered to be overstretching? Is 50% of the income to be spend on the mortgage too high? It would still leave me approx £1600 each month of disposable income which is sufficient to maintain the lifestyle that I want and save a bit of money too.

libitina_2

Can you still afford it if your circumstances change ie children? What if the car breaks down or something else that can cost a fair bit of money? Is your job secure?

sarah_elton

Agree with libitina, although another big thing to consider is what you do if interest rates rise:

http://money.guardian.co.uk/calculator/form/0,,603156,00.html

Put in your figures, then increase the interest rate and look at what it does to your repayments. Know what interest rate you can afford up to, and think about what you'd do if they end up above that.

Edit: just noticed I'm two days late to the thread that's what comes with starting a new job this week lol