Do I have enough left after a mortgage

DannyboyMidlands

What will you do if you can't remortgage onto a similar deal in 2 years time? Say the best you can get is 6%?

If I were you I wouldn't want to go much over 25% of take home. So that's £450ish. Your repayment of £700 sounds high. I just borrowed the best part of £100k and am paying £450pcm. Maybe find a cheaper property?

shop-to-drop

If you can take in a lodger I think it's doable but try to get a 5 year fix rather than 2.

spark9876

Can I ask how much your mortgage will be?

Looking at your figures for Council Tax (£78.75) it sounds like you're looking at a property in Band A however a £700 a month mortgage to me implies the value of the house might be quite high? I am aware of your 25% single occupier discount and have taken that into account.

I could be wrong but I'm thinking a house you buy may be in a higher council tax band than that? It won't necessarily be the same as you're paying now.

It does seem like a high monthly repayment in relation to your income. I'd think very seriously before you commit to that.

mattdragon2

A lodger would bring roughly £400-£450 extra a month.

At the moment I spend £140 on food a month and entertainment I spend 35 a month anyway (been saving for 5 years). So maybe I can adjust to that.

The house in in Band C.

I guess I need to think about how much I can afford. At the moment it costs me £505 a month but thats with council, gas, electric, water, tv license, building insurance included in the monthly cost.

spark9876

mattdragon2 wrote: »

A lodger would bring roughly £400-£450 extra a month.

At the moment I spend £140 on food a month and entertainment I spend 35 a month anyway (been saving for 5 years). So maybe I can adjust to that.

The house in in Band C.

I guess I need to think about how much I can afford. At the moment it costs me £505 a month but thats with council, gas, electric, water, tv license, building insurance included in the monthly cost.

Have you checked the council tax charges for band C with your local authority? I could be completely wrong but I think your figure is way too low!

bristol_pilot

You will be fine if these mortgage payments are at a fixed rate. 40% of take-home pay on housing costs for a single person is not madness, it is fairly typical - anything uo to 50% is normal. Where you may come unstuck is if the mortgage is a tracker - what are the monthly payments if base rates go to, say, 6%? I'd be tempted to go for a 5-year fix, rather than 2.

mattdragon2

Just checked, it's £1331 a year. So with 25% discount it's around £83 a month.

I will look into 5 year fixed. Thanks for advice.

wastedtalent

mattdragon2 wrote: »

Just checked, it's £1331 a year. So with 25% discount it's around £83 a month.

I will look into 5 year fixed. Thanks for advice.

But it's not because you pay it over 10 months, so for 10 months you'll be paying just shy of £100pcm and 2 you'll be paying nothing.

It'll even itself out but only by the end of the year. It may only be £20-30 but on a tight budget that matters.

superted187

I personally wouldn't do it.

You will want to live a bit and spend money on entertainment, holidays and going out.

The last thing you want to do is feel like a slave in your own home, to the point where you daren't go out because you're constantly over stretched.

shop-to-drop

I think you need to do a more detailed budget plan. You haven't budgeted enough for car expenses, don't seem to have included service costs and £500 for repairs may not be enough car costs are going up all the time too. Is it likely you will need to replace the car within 5 years? You have been saving for 5 years brilliant; how much have you been able to save each month? What have your housing costs been over these 5 years how does that compare? Thismay also help you see how well you will cope.