Take Home £3800 per month is £1000 mortgage manageable

ginvzt

riverboat2001 wrote: »

We have about £7000 savings to put towards any costs, hoping to get solicitors at cost. Seller going into rented to might be an adjustment for fixtures and fittings.

£250k is my maximum that i want to borrow, but i guess for the right house that could change, but think stamp duty is the diving cost.

I have another mortgage currently on a standard repayment of about 0.5% apart from that NO other money owed anywhere (At Last!)

Thanks to you all for putting my mind at rest, just seems an awful lot of money....:eek:

Am I the only one to think that £7k is not enough for costs/fees if you are buying over £250k? Just the stamp duty will be £7500+, and then there are other fees as well, even if you get the solicitor at 'cost'.

hillcats

I also get paid 4 weekly = 13 x Per year, I have never known any different TBH.

This is splendid, as it means we always have some point in the year when we have
effectively a free month / free 4 weeks money... as all the bills have been
paid etc, this allows us to make a 13th mortgage payment every year without batting an eyelid as being used to paying it out anyway, the rest gets saved / used for little luxuries etc...

Nixxx

ginvzt wrote: »

Am I the only one to think that £7k is not enough for costs/fees if you are buying over £250k? Just the stamp duty will be £7500+, and then there are other fees as well, even if you get the solicitor at 'cost'.

Stamp duty is not payable for first time buyers for properties under 250k. I was under the impression that the OPs max budget was 250k so assume he wants to spend less. I think 7k is quite doable.

ginvzt

He already has a mortgage - so not a first time buyer. Also, OP was talking about £250k.

If we are pushed to £250k the morgage payments will be about £1000 per month. We take home £3800 every four weeks.

I have another mortgage currently on a standard repayment of about 0.5% apart from that NO other money owed anywhere (At Last!)

GMS

Surely the only person capable of answering your question is yourself?

I know of people earning £1000 per month and managing to live, and know of people earning £5000 per month who never have a penny to their name.

If YOU think it is manageable then it is.

riverboat2001

I've always found getting paid four weekly a pain, i know you get the 13th pay packet with no commitiments, but i'd rather get paid on the 1st of the month and have all my bills paid out on the 2nd!

As for the stamp duty, this is my only other concern.
It's the first time buyer bit that is confusing.

Yes I have another property (that Mum live rent free in)
My partner DID have another property, but gave it up to his ex wife about 15 years ago in a divorce settlement,
And the property we want to buy now will be our sole home, or main residence (not sure what correct term is, but it's where we will be living for the foreseeable future.

So what rate of stamp duty will we have to pay?

Lastly, Mum works for a conveyancing solicitors, and such i "should" be getting the solicitor side of things done at cost, although she thinks they will be tightening their belts soon too!

picardygirl

riverboat2001 wrote: »

I've always found getting paid four weekly a pain, i know you get the 13th pay packet with no commitiments, but i'd rather get paid on the 1st of the month and have all my bills paid out on the 2nd!

My OH gets paid every 4 weeks and we love it! The month that he gets paid twice in we can put a good majority of it away into our savings without even noticing that we are saving! We cant put it all away as we still use a few hundred quid to live and eat etc......

ginvzt

If you ever owned a property, you are not a first time buyer for stamp duty purposes. So, you will pay 1% if you agree on the price under £250k, and 3% if it is £250k and over.

As you still own a property - you do not qualify for first time buyer exemption.
As your partner HAD a property - he does not qualify for he exemption either.

Even if one of you did qualify, if buying together you would not be exempt.

p00hsticks

riverboat2001 wrote: »

The AIP is for a three year fixed deal, interest only, original property will be sold within three years and clear new mortgage.

Have you taken into consideration the fact that, as you are not living in this property, you may be liable for CGT when you come to sell it.... ?

riverboat2001

ginvzt wrote: »

If you ever owned a property, you are not a first time buyer for stamp duty purposes. So, you will pay 1% if you agree on the price under £250k, and 3% if it is £250k and over.

As you still own a property - you do not qualify for first time buyer exemption.
As your partner HAD a property - he does not qualify for he exemption either.

Even if one of you did qualify, if buying together you would not be exempt.

Hmm, thanks very much for that, so 1% on 249.99k
for some reason i thought it was higher on the over 250k part, but because new mortgage would be interest only, i will definately be staying under the 250k mark