Mortgage over what period?

milliebear00001

Thrugelmir wrote: »

Borrow less. If money is that tight and you are banking on future pay rises to speed up debt repayments. Both tax and interest rates will rise in the short term so over committing in the current economic climate is not advisable.

Thanks for that. Things will be tight, but the alternative is never to buy - something I really want to avoid as I have children. I am a teacher, and so am more likely than most to be able to rely on a fairly swift salary increase over the next 6 years at least. I intend to get a long fix in order to have some security of outgoing/income ratio.

getmore4less

milliebear00001 wrote: »

Thanks for that. Things will be tight, but the alternative is never to buy - something I really want to avoid as I have children. I am a teacher, and so am more likely than most to be able to rely on a fairly swift salary increase over the next 6 years at least. I intend to get a long fix in order to have some security of outgoing/income ratio.

That assumes you have a job.

Some regions are seeing roll numbers fall so much they are making teachers redunant

The age demographics show falling numbers for 8y+ for a few more years as the low birth rates in 2002 filters through the system.


The trouble with borrowing tight is making sure that when the rises do happen they don't get absorbed by other things, like something for the kids, holiday, cars etc.

What does the 5 year budget look like?
Have you done one that shows everything needed can be saved for without needing further borrowing?

dimbo61

Have a look at YBS 5 year offset fix and also Coop 3.99% 5 year fix FEE £999

milliebear00001

getmore4less wrote: »

That assumes you have a job.

Some regions are seeing roll numbers fall so much they are making teachers redunant

The age demographics show falling numbers for 8y+ for a few more years as the low birth rates in 2002 filters through the system.


The trouble with borrowing tight is making sure that when the rises do happen they don't get absorbed by other things, like something for the kids, holiday, cars etc.

What does the 5 year budget look like?
Have you done one that shows everything needed can be saved for without needing further borrowing?

Thanks for the advice, but my school is an extremely popular one and has been for many years. Our waiting list suggests I won't be on the redundancy list anytime soon.

The rate will be a five year fix, because the teachers' payscale increases every year for the first 6 years of employment (and then continues to rise according to performance). By that time, my salary will be at a level that allows me to ease up a bit (assuming interest rates aren't through the roof, but then that's something none of us can really know). We will be able to save while paying the mortgage - that is factored in - but it won't be large amounts. Needing to replace a car would make things harder, but then we'd either have to manage with a cheap car, or take out a loan to buy one and forgo adding to savings for a while. Ordinary expenses like a new boiler/expensive car repair etc should be manageable within the budget.