Experienced mortgagee's - Will we be overstretched? IYO??

thriftychap_2

hcb42 wrote: »

That kind of payment would scare me to death, and our income is significantly higher.

(just my opinion)

Can you tell me why? Cheers

thriftychap_2

dwsjarcmcd wrote: »

A few years ago, I originally 'reserved' a house and couldn't sleep for worrying about affording it. Decided to not proceed and buy something more manageable and was the best decision I made.

David

Very thought provoking - I think when it comes down to it this too will determine our course. I am debt adverse...........

The old saying 'sleep on it' sounds good advice.

The more replies I get the more im thinking to sit tight for a while and save more......or get a cheaper house (which are smaller and we dont like)

Swiss_Toni

thriftychap wrote: »

As a teacher you go up the pay scale each year. the same for a nurse. The pay freeze means that the scales are frozen but you still go up each year. You go up each year for 6 six years...

The Govts approach with other Public Sector workers has been that you shouldn't move up the scale simply as a result of "time served", and a pay freeze for others means just that - no increase, no move up the scales and in fact for those at the top of the scales, a pay cut as the top points are removed (on top of a freeze being a real-terms cut...).

I would be careful about budgeting on the basis of any pay rise in a Public Sector job.:mad:

Swiss_Toni

PS

Having said that, and to answer your question, I have a very similar income, similar outgoings and have a fixed mortgage (for the next 5 years) of iro £1100.

It is much more than the levels previous generations have been comfortable with, but then we will be paying for their past comfort for many years to come....!

thriftychap_2

Swiss_Toni wrote: »

The Govts approach with other Public Sector workers has been that you shouldn't move up the scale simply as a result of "time served", and a pay freeze for others means just that - no increase, no move up the scales and in fact for those at the top of the scales, a pay cut as the top points are removed (on top of a freeze being a real-terms cut...).

I would be careful about budgeting on the basis of any pay rise in a Public Sector job.:mad:

You move up annually on the MPS. To go over threshold to UPS 1,2,3 you have to apply. However i will have no problem meeting the criteria for each of these jumps. But your right, in real terms with inflation its a pay cut!

Currently, I am not aware of any proposed changes to they way teachers are paid (scales etc) if you know anything more ill be delighted to know.

Thanks.

InMyDreams

thriftychap wrote: »

My partner (23) and I (27) are aiming to move in the New Year. I’m a teacher, she a nurse. Combined income of 55k at present but this goes up each year by a few thousand. By the time we move it will be 60k. ... I would like to know from the more experienced members their opinions on size of mortgage. Between you, you have had many mortgages and a lot more life experience of dealing with ups and downs (rates, children etc) than we have. Do you think we might be biting off more than we can chew based on these figures and your experiences?

FWIW...

We are both teachers (in our late 30s) and that mortgage would scare us. The reason is because it would trap you into needing both incomes in the future. You do not know how you will feel or how your attitudes may change when children come along. Priorities can change beyond your wildest dreams. I can't imagine being in the position of having to fork out hundreds of pounds a month for someone else to have the privilege of looking after *my* children because putting a nicer roof over their heads seemed more important at the time.

GMS

thriftychap wrote: »

Hi again - once again I am not seeking approval. Im looking to be enlightened by expereinces that will endeavour to assist me in making a well informed decision. As a youngster I am not naive financially but know that people with more life experience than me will be able to offer some seeds of wisdom. If i can learn a lesson or two without making a mistake i would rather do that than fall flat on my face later because i was too arrogant or confident to ask advice.

Already I have been made aware of circumstances that i had overlooked.

I appreciate these responses very much.

Sorry for my previous reply - a little tempremental. I was not angered but frustrated, in no way am I seeking approval and being told I was from a financial adviser seemed a little ironic considering your job (is this what you tell clients seeking 'advice') Your responses are appreciated. Thank you.

My clients would receive advice from me after I have completed a full fact find. In no way would I advise in a forum. If a client of mine was unsure if they could afford a mortgage I would not try to talk them into it. I would assist in any way I could but at the end of the day the decision to enter into a mortgage is not one for anybody to make other than the borrower(s).

[Deleted User]

Hi, I’m not going to comment on the affordability of this or not as I too am yet to embark on a mortgage (currently saving for deposit, but still a bit behind you), but you are asking one of the questions I have been asking myself for a while now – what would I be comfortable with paying out for the mortgage each month? So I will be watching this thread.

I have made some comments next to your proposed budget:
Water – 60 To me this seems high
Gas - 60
Electricity - 60
Council Tax – 125 - For a £200,000 house this seems quite low – obviously this will depend on where you live – have you looked into what the council tax bands will be on the type of houses in your prefered areas and then looked them up?
Building & Contents Ins - 25
Life Ins. - 20
Car – 250– what is included in this monthly expense – MOT, maintenance, tax, insurance, car repayment?
TV License - 15
Phone & Internet - 20
Mobile Phones - 50
Gym - 60
Petrol - 100
Food - 200
Her money - 200
My money - 200
Invest – 200

Not sure if the following is meant to come out of your “own” monies but have you accounted for clothing, entertainment (eating out, cinema, going out etc), bigger yearly expenses like holidays, Christmas and birthday presents, haircuts, other work related costs (e.g. your OH will need to pay for her registration every year – currently £76 I think, and most likely union fees as well).

Also, you have mentioned that when you move you may have to look at getting a second car – have you tried to make a budget based on this? Have you considered what all the transport options will be to/from your current work to your preferred areas?

As for your deposit, have you factored in all the costs of selling and buying? Stamp duty, surveys, solicitors etc, moving costs, and furniture/white goods you may need? Obviously the bigger your deposit, the better mortgage deal you will get (but you’ve already mentioned that you are clued up on this).

Another factor to consider is that if one of you lost your jobs or became too ill to work, would the other be able to cope? Do you have emergency savings for such a situation that you could rely on even for a few months?

HTH

D9

Thrugelmir

From personal experience. Take your time. When the time is right you'll know it. Overpaying your current mortgage is one of the better ways of saving to become better off in the longer term.

sarahevie

Children are very life changing, I personally think that saying she will go back part time, her sister will look after them isn't necessarily something to bank on.

What if she wants to leave work and be a full time mum? What if the sister doesn't want to look after your children?

These things can't normally be decided until you have children. I speak from experience.

I had a good job in academia, yet I chose to be a full time mum, part time would have been a better option financially but I wanted to be full time with my girls.

Originally we had £3450 income for an £850 mortgage. We now have £1850 for an £850 mortgage. Financially we are worse off, but I wouldn't change it.

My point is incomes can go down as well as up.