£900 per month???

merkat1

Hi guys,

the info on this site is brilliant i must say!!

My boyfriend and i have seen a house that we like for £215k we have a deposit of £25k so have found the best mortgage for us to be the HSBC fee's free one.

The repayments will be around £900 do people think this is ok as we have a joint income of £2400 (and usually £3000 bonus each year)

I want to buy the best we can but i dan't want to push oursleves to much...we have no debt by the way and it is just us 2.

Looking forward to your thoughts...thankyou very much

Thrugelmir

Which mortgage product are you considering?

beecher2

Work out how much you'd be paying at 5% and make sure that's easily affordable. Can you manage if rates are at 8 or 10%?

What's your salary multiple as it sounds like it might be too high.

suisidevw

What % is that rate at? Sounds like quite a lot............ PS, that looks as though it'd be over about 40yrs?

LeeSouthEast

That's already 37.5% of your income, and rates are generally at their lowest for a decade. If interest rates rise to 8% you'll pay £1,659 a month. If they hit 15% like last time, you'll be hit with £2700.

It sounds like a very bad idea, in my mind. (Assuming 25yr repayment mortgage)

merkat1

Its 4.49% mortgage with HSBC Lifetime Tracker Fee's Free Mortgage for 25years, i understand what your saying about the interest rate going up and you are right we would struggle if it did, just can't see us saving up 20% deposit though! ( x

VIGILANT22

merkat1 wrote: »

Its 4.49% mortgage with HSBC Lifetime Tracker Fee's Free Mortgage for 25years, i understand what your saying about the interest rate going up and you are right we would struggle if it did, just can't see us saving up 20% deposit though! ( x

First time buyers...25yr Lifetime Tracker...did you receive advice on this???

iB1

I did a very quick search on HSBC. I assume that this is the life time tracker that you've found?

Correct me if I'm wrong, but that calculated that at 4.49% on a 30 year mortgage you'd be paying £962 per month?

If that's right, it's 40% of your take home pay, which is an awful lot - plus if rates go up, then you could be over stretching yourselves

beecher2

I make that £1,055 a month. When base rates return to a 'norm' of 5%, you'd be paying £1,593 a month. It would be madness to take this on, and it sounds like the salary multiple is too high to be approved anyway.

merkat1

ok thanks guys, seems i have been confused in looking at this, looks like more saving then! i get paid £1200 a month and im putting £1000 away each month and my boyfriend £600 so just have to wait a year or so...im just so scared that prices will shoot up on houses...but doesn't look like i have much choice other than to keep saving!

Thanks so much for all your advice on here...its brilliant! x

VIGILANT22

[QUOTE=merkat1;i_get_paid £1200 a month and im putting £1000 away each month [/QUOTE]

Maybe you need to teach us how to save 83% of our income (rolls eyes)