Take Home £3800 per month is £1000 mortgage manageable

SandC

Maybe I'm a bit simplistic but then I take home about one third of what you take home (just me, total household income), but it's less than a third of your pay so of course it's doable.

Why interest only? £1k is less than a third of what you are taking home and your bills will be less than £1k easily. Okay so I've got a smaller house probably and a very small mortgage as I bought years ago but my outgoings are about £550 after mortgage including savings (that's essential bills and insurances, doesn't include food and petrol).

riverboat2001

SandC wrote: »

Maybe I'm a bit simplistic but then I take home about one third of what you take home (just me, total household income), but it's less than a third of your pay so of course it's doable.

Why interest only? £1k is less than a third of what you are taking home and your bills will be less than £1k easily. Okay so I've got a smaller house probably and a very small mortgage as I bought years ago but my outgoings are about £550 after mortgage including savings.

My partner is 53 next month, and so we can only get a 12 years motgage, so cannot possibly afford a repayment mortgage.

TrickyDicky

riverboat2001 wrote: »

My partner is 53 next month, and so we can only get a 12 years motgage, so cannot possibly afford a repayment mortgage.

So how do you intend to pay back the mortgage when the 12 years is up?

WeBeBroke

riverboat2001 wrote: »

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

Stamp duty is 1% for properties between 125k and 250k - 3% above 250K. However stamp duty is calculated on the entire property price - it's not segregated to 1% for under 250k and 3% for anything over.

So if your house is 250K: SD=£2500
if your house is 250,001: SD=£7500

Also, if your mortgage is for 12 years, you may find it hard to get an interest only mortgage?

dave82_2

"£280k, and are thinking of making an offer of £240."

Don't think they will sell you a house valued at £280,000 for £240.

Sorry I am in a silly mood!

getmore4less

Whats happening to the place you are living in?

You have a serious repayment issue to consider if going interest only with retirement looming in 12 years.
with £250k +£48k say £300 needs £2000pm before interest.

You are going to come up short so need to consider the long term plans and liquidating assets

£250k @ 5% is around £1kpm interest only what do they rent for? MIght be cheaper.

I think you need to sit down and do proper SOA/budget planning to see if you really can give up the lifestyle.

£1k pm savings is not doing that you need, you need cut back much more.

With the current housing costs I think £1500pm is probably more than enough to live on including the small £48k mortgage @ 0.5% so you need to be looking at saving £2kpm that still leaves £300+pm to squander.

4week pay is easy to manage just pay it into another account and pay yourself on the first to the account you use if that what you want.

Most people have weekly,monthly,quarterly and annual bill so when you get paid is not going to be right for one of those so just get your head round an annual budget and plan properly money inn /money out can be totaly seperate issue unless you spend it all(perhaps thats been your problem).

riverboat2001

TrickyDicky wrote: »

So how do you intend to pay back the mortgage when the 12 years is up?

By selling up the other property mentioned in my original post.

riverboat2001

p00hsticks wrote: »

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.... ?

:eek: Oh, sh*t i haven't even considered that!:eek:

We Brits truly are being taxed to death

blueberrypie

riverboat2001 wrote: »

By selling up the other property mentioned in my original post.

That might not be enough to convince a lender.

In your position, I would save like mad - you've a good income, well above your needs, and tbh there are a lot of people on this forum who are saving more than you on substantially lower incomes. I would also talk to an independent mortgage advisor, because there are several factors which complicate things: your partner's age, the fact that you want to borrow on an interest-only basis, the fact that you have another mortgage...and it does sound like you need someone who can point out to you all the other bits of information that you need and might not even have thought of - like CGT and stamp duty etc.

picardygirl

riverboat2001 wrote: »

By selling up the other property mentioned in my original post.

So, your selling the other property your Mum lives in to pay off your mortgage, where is your Mum going to live then? Or have i missed something?