Do you think this mortgage amount is manageable on our income?

Kel_3

Hi,

I know this is a bit of a stupid question but would really appriciate someone elses veiw on this.

We have put an offer in on a property for £260,000. We have £100,000 equity in our current house so would be looking at getting a £160,000 mortgage. The monthly repayments will be between £930 and £1000 a month (not sure what lender we will go with yet). DH earns roughly £40,000 a year and I earn £7500 part time, so a joint income of 47,500. We don't have any other debts and our current monthly bills come to approx. £470 (although obviously this will be slightly higher on a bigger house).

Do you think this all sounds quite resonable? We are quite good with money (thanks to MSE:D ) so don't see any problems but just need some reassurance!

Thanks

Kel

Ian&Kel

It sounds OK to me. In fact the situation with me is going to be quite similar. I am looking at the same sort of income (slightly less for us) and the same sort of mortgage (slightly less for us). Our repayments will be around £850.

As long as there is no other debt then affordability is fine. And with a huge LTV like that lenders should be falling over themselves to offer you money. You should get a great rate too!

redballoon_2

What is your total monthly outgoings per month? including food, clothes, petrol as well as household bills?

Ian&Kel

I would think you could als get those monthly payments down with a good deal, seen as you are putting such a hefty deposit down.

I would have thought roughly guessing it would leave you with approx £800 free money at the end of each month

herbiesjp

Just under 3.5 times your joint income looks like an average level to be at.

Kel_3

Thanks or the replies.

We put £350 onto a tesco club card plus evey month and this covers food and petrol for the month. Current household bills come to approx £470. Also pay nursery fees for 2 little ones which are £250 (tax free as use nursery vouchers).

redballoon_2

OUt of the £350.00 how much is food? This can be reduced if you read the threads on the old style board.

I am sure that you will be fine on this mortgage.

Kel_3

redballoon wrote:

OUt of the £350.00 how much is food? This can be reduced if you read the threads on the old style board.

I am sure that you will be fine on this mortgage.

I'm already looking into this redballoon. I say about 270-280 that is spent in the supermarket which is quite alot I guess for 2 adults, 1 toddler and a tiny baby.

redballoon_2

yes that is a lot and could be reduced with careful shopping and planning.

The os board is really good and has helped me reduced our food bill down to £80.00 a month (thats for two adults and we eat well and healthily) I would encourage you to check the board out and reduce it! If you managed to reduce it it would mean more money for you left over per month to put towards savings/holiday or whatever!

Also dont' forget with the tesco club card vouchers - dont spend them in store!

Are you signed up with Pigsback?

Kel_3

Thanks for the advice Redballoon.

I signed up to pigsback the other day and i'm currently saving my tesco vouchers to convert to deals (Have about £100 worth at the moment:D )

£80 a month for 2 adults is very impressive, I definatly think we can cut the food bill down then.

Kel