Simple Mortgage Question

noakesc

Thanks for the help everyone. I am in a bit of a pickle really. My job is an Estate Agent, therefore I have a very low basic salary, but earn commission. I have to take 60% of my commission into consideration (according to other Estate Agents I know), which led to my figure of £17,000 (although I am currently new to the profession and this commission is a realistic estimate). I would hope that my real earnings would be roughly £20,000.

Is 40% of take home pay suicidal? Maybe me and my partner should go for a much cheaper property. But it won't be anything that we will be too happy with. To add to the complication, I practically have to move out by May time next year.

Thanks

somethingcorporate

You will be stretching yourself - there are a lot of other costs to owning your own home aside from paying the mortgage. You both earn less than national average yet you want to buy an "average"-priced house.

We recently had this choice, stretch ourselves for the very expensive property or buy a more modest one. Every time I look at my bank account and see money in it I am happy I took the more modest option.

noakesc

I understand we will be stretching and this is the problem. Where we live and are looking to stay near to, £200k would only get a house needing lots of work and of a small size. £190k around this area will get you a 2 bed flat in a slightly less desirable area.

I think I have to just hope that my job goes well and my salary improves.

Thrugelmir

noakesc wrote: »

I understand we will be stretching and this is the problem. Where we live and are looking to stay near to, £200k would only get a house needing lots of work and of a small size. £190k around this area will get you a 2 bed flat in a slightly less desirable area.

And if you moved further afield? Would prices drop at all.

noakesc

Thrugelmir wrote: »

And if you moved further afield? Would prices drop at all.

Yes they would, but it would have to be maybe a bit further out than I would like. Too far from job and family/friends etc. 200 can just about get me a 2 bed house a little further away in a particular area. That is now what we are both looking at.

Just have to hope I start earning more money sometime soon.