How manageable is my mortgage FTB.

capstain411

Hi.

I have put an offer of 265k on a house, we might get it. We absolutely love the place. I have around 88k saved. Plan to put 68k as deposit. The vendor is paying half the stamp duty.

I am looking at 5 yr fixed mortgage with Yorkshire BS with int rate of 4.39%. Monthly payments would be 1092 per month. I earn 3219 per month after tax. Missus earns 1500 after tax. Not factoring her salary as all she earns is going to be saving for future.

Are we chewing more than what we can swallow. Is the monthly payment too high as I am not sure how much insurance, and bills for the bigger house is going to be. Short term I think it should not be a problem, but in 3 years time we want to start family. Will bigger mortgage bite us then.

Muscle750

I would start askin a few questions here, firstly are you in a job that is reasonably secure. Second which is unanswerable what are the interest rates going to be in 5 years i wouldnt of thought insurance bills would be a big difference heating etc maybe abit more.
Would your wife go back to work after children? Have you a house to sell? If so whats owing etc on that or are you stating on the ladder .
I would sit and think if she lost her job tomorrow looking at the figures could we manage its no good having a £250k plus house and half a can of out of date baked beans for sunday dinner.
Council tax as well aint gonna be cheap, plus be carefull as i got caught as when we bought our house it was revalued and band changed they can only do this when the property changes hands
If it was me i think id have a long sat down chat and basically say "If it does all go bang we made a joint decision to go down this route" good luck
Plus if you know of any other jobs bringing home that give us a shout !!

CLAPTON

you have a combined income of around 80k

people on less than half that manage to live well with a 190k mortgage

capstain411

Thanks for replies.

Muscle 750 I am first time buyer. I work as community pharmacist. No dearth of locum jobs even if my employer who grew 4.5% last year went bust...people will always need their medications and they cannot bypass a pharmacist.

Wife is software developer. She is working for govt insolvency firm and was recruited on permanent basis after department restructuring. Whether she will go back to work after a child.....children no way!!!! is uncertain.

dwsjarcmcd

I can't see it as a major issue. As stated above, many people stretch themselves to get a loan but you appear to being pragmatic about it. You have clearly saved well and will doubtless manage your finances prudently.

My only other comment is could you negotiate the seller down to below £250k, with the sweetener for them being that you will pay all the stamp duty?

capstain411

dwsjarcmcd wrote: »

My only other comment is could you negotiate the seller down to below £250k, with the sweetener for them being that you will pay all the stamp duty?

Well the sellers knew the house is a good pick. They were not going to come any lower than 270k. My last roll of dice is 265k....started with 249 and then 258 both rejected. Lovely house. Has planning permission to extend lounge and build 4th bedroom. Don't see that happening for next 7-8 yrs.

dwsjarcmcd

capstain411 wrote: »

Well the sellers knew the house is a good pick. They were not going to come any lower than 270k. My last roll of dice is 265k....started with 249 and then 258 both rejected. Lovely house. Has planning permission to extend lounge and build 4th bedroom. Don't see that happening for next 7-8 yrs.

Fair enough, good luck and I hope you get it!

dimbo61

I am a customer of YBS and have just finished a 5 year fix with them now on a tracker!
My mortgage is an offset one and we have been very pleased with the flexability this offers.
If you paid your OH income into the offset each month and tried to live off your income alone you could build up savings in the offset account( emergency savings/extension savings) for when you wife is off work and also be saving interest on the mortgage in the mean time.
Good luck

capstain411

thanks dimbo61.

When we save money in offset account, just to confirm we do not get any interest right.

Whats the tracker rate. Is it say usually 2.5+base rate or ybs regularly changes it.

Apart from ybs and first direct does any other lender offer fixed offset mortgage.

dimbo61

Well thats 3 questions so let me answer them as best as I can!
1 you dont earn any interest on the savings in the offset account but as you know its " saving you whatever interest rate you are paying on the mortgage TAX FREE"
2 Our tracker which came with the mortgage 5 years and 5 months was a tracker at BOE base plus 0.75% BUT and this is the BIG BUT its got a collar of 3% so we pay 3.75% until the BOE goes over 3%
3 There are other lenders Barclays ( who allow ISA,s to be offset) and lots of others check out "moneysupermarket"