Income multipliers or actual affordability?

poppy10_2

callmechar wrote: »

My point is it is dead money.

What about your mortgage interest?

callmechar

poppy10 wrote: »

What about your mortgage interest?

Yes but thats getting us something....albeit it a lot of interest, its towards the house

somethingcorporate

Interest towards the house is dead money. Only the capital element goes towards owning it.

If you have an interest only mortgage you are not paying for your house, only paying the interest on the money borrowed.

This is just as dead as renting.

callmechar

somethingcorporate wrote: »

Interest towards the house is dead money. Only the capital element goes towards owning it.

If you have an interest only mortgage you are not paying for your house, only paying the interest on the money borrowed.

This is just as dead as renting.

Yes but its OUR house not someone elses

poppy10_2

For a £190,000 mortgage at 6% over 30 years, you will be paying £1150 per month, of which £950 will be 'dead money' going to the bank as interest, while only £200 will be going towards paying off the capital for the house.

callmechar

poppy10 wrote: »

For a £190,000 mortgage at 6% over 30 years, you will be paying £1150 per month, of which £950 will be 'dead money' going to the bank as interest, while only £200 will be going towards paying off the capital for the house.

We would not get 190k mortgage at 6% (prob 5%)

I do appreciate we need minimum of 10% deposit and the interest we pay needs to be less than we pay now in rent.

Thanks

callmechar

I also think many of you are right that we need to get a cheaper mortgage but that means we cannot get what we want so not sure what to do

beecher2

callmechar wrote: »

I also think many of you are right that we need to get a cheaper mortgage but that means we cannot get what we want so not sure what to do

Postponing buying until you can afford to do so seems the wisest move.

callmechar

beecher2 wrote: »

Postponing buying until you can afford to do so seems the wisest move.

Quite possibly but my other half is in his mid thirties and we want to but asap

beecher2

callmechar wrote: »

Quite possibly but my other half is in his mid thirties and we want to but asap

I want a bungalow by the seaside but it isn't realistic for me at the moment so I'm planning for when it is realistic - that's life, surely?