Are we been realistic?

MrsJT_2

Hi All

Were is trying to obtain a mortgage on an apartment so far so good couple more hurdles but hopefully we shall be able to have the mortgage.

My question is we will have approximately 800 a month to pay for the mortgage and all the bills plus food is this do-able or are we been un-realistic? mortgage would be about 370 a month leaving us 430 for bills.

Bills would be for a 2 bed top floor (2nd) apartment with 2 people living there.

Sorry to ask what may seem a daft question but I've never run a property.

Thanks in advance

P.S Sorry if i've put this in the wrong thread

TrickyDicky101

Hi

Have you taken into account the ground rent and the service charge payable on the property? On flats the service charge especially can sometimes be significant.

Caroline_a

That looks tight to me. What you also have to think about is what you would do if the interest rates went up - do you have a fixed rate? You need to think that it will be around £100 a week for everything, food, fuel, travel, clothes, holidays, presents, internet, mobiles, credit cards, etc etc.... work out what that costs you now (well, the ones that you know about like mobiles etc), take those away from the £100 and see what is left.

firstaspect

That's going to be pretty tight. We're in a 2 bed terrace and our average budget works out at around £800 a month AFTER the mortgage has been paid. That's for utility bills, food, petrol, TV, mobile, socialising etc. Depending on where you are the council tax alone could be well over £100 a month.

MrsJT_2

HI

Yes we are aware of the ground rent and service charges also the £800 we would have left would be after any other bills we have mobiles, running the car etc the £800 would purely be for the mortgage and household bills plus food.

pinkshoes

You should be looking to spend about 1/3 of your income on rent/mortgage, so yours will be nearer 50%.

I lived in a 2 bed flat for years:

Water £10
Gas £25
Elec £35
Council Tax £110
Phone/Internet £25
Food £250
Total £455

Car tax/insurance/MOT/petrol? Mobile phone? Intend to have a life?

Personally I wouldn't do it, as it's just too tight and potentially asking for trouble.

MrsJT_2

pinkshoes wrote: »

Car tax/insurance/MOT/petrol? Mobile phone? Intend to have a life?

Personally I wouldn't do it, as it's just too tight and potentially asking for trouble.

This is all paid for totally seperate and isn't included in the £800

£800 is what we have left out of our income after all other bills, CC's, insurance, mobiles etc etc

firstaspect

The other thing to think about is are you going to have any spare cash to save each month. If something goes wrong (which can happen a lot when you own a place) like boiler breaking down, electrics have a fault, TV stops working etc. then if you haven't got anything saved you'll be stuck for the repair bill. I personally like to have at least £200 spare a month to put into savings.

MrsJT_2

Hi,

Yes we would be putting 150 a month into a savings account for any problems that could occur (hopefully not, but to be on the safe side).

Thanks guys, please keep your responses coming

pinkshoes

Don't forget you also want to be building up enough savings (putting aside say £200/month) for anything that should go wrong, and have enough to pay your mortgage for 6 months should you become unable to work, so this should be factored in.

MrsJT_2

Also, partner does have regular overtime which we have not included in any available funds.