Do I have enough left after a mortgage

andrewmp

wastedtalent wrote: »

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.

I doubt it really matters but I pay mine over 12 months anyway!

His figures sounds fine except for the mortgage which is a risk when it goes variable in two years.

Can't you get a 10 or 25 year fix or something?

AFK_Matrix

Just a few other things to consider are do you have anything like breakdown cover for your car as I pay something like 13 odd quid for my AA cover and also are you going to be getting any mortgage insurance for if you do become unemployed etc?

Best bet is to sit down with a couple of monthly bank statements and see what your spending. In my case I am paying £610 for renting a 2 bed flat and have to pay for all my bills on top so have a good idea of what everything is going to cost me and even with the £400 spare I can still make some savings if necessary. I don't see £695 being to big for my income which is around £1900 a month and I have done lots of work on my budget to make sure things will work out. If you can get a lodger it will help things massively but you may have some months where you don't have a lodger. My budget has been done without the lodger amount to see if I can handle it on my own and I am happy that I can.

Clearlier

It's a bit tight but doable. You don't mention anything about a rainy day fund? 3 months salary minimum in an account that can be accessed fairly quickly. As you're planning on owning a property I think 6 months is a better idea. There will always be repair and maintenance bills that crop up from time to time.

From a financial point of view taking on a lodger is a no-brainer. Only you can tell how it will fit in with your lifestyle. If you haven't got a rainy day fund then I'd strongly advocate taking on a lodger at the very least until you had that fund in place.

mattdragon2

It's a big change.

I was saving 1k a month. My petrol was only 45 for 1 and half months.
My rent is 505. My bonus paid for anything else like car costs.

My breakdown cover is about 150 pounds and I forgot to get it changed to AA, so I can save some money there too.

All I've been spending for entertainment is 35 pound a month and I'm happy with continuing doing that as I have got used to it for 5 years.

I think the car costs are about right since having it for a few years and looking at the repairs.

My aim will be to save at least 350 a month which over 6 months should cover me for anything breaking down. I also have my bonus coming up in April for 4k too.

My intention is to get a lodger, but I am not factoring the money I get from a lodger to ensure I can do this alone.

I have a payrise in Jan where my monthly pay becomes 1828 a month. I need to sit down and think about it.

shop-to-drop

Is your bonus guaranteed? As this would make your figures look healthier.

mattdragon2

It is expected to get a bonus. They have been giving them out for 10 years over 4k but I don't like to take a bonus into account because anytime they can turn around and say no more.

AFK_Matrix

Oh hey if your changing your breakdown cover or anything else for that matter don't forget to sign up to topcashback or even quidco so you can make some cashback. Every little helps!!

parent_of_too_many

Please, please don't take this the wrong way, as i'm not trying to be sarcastic or clever, but I think the fact that you felt you posted your dilemma on here to gain reassurance is a pretty good indication that you yourself are not 100% convinced. If this is the case, which it seems it is, then that should answer the question for you? ONLY YOU know if you can survive comfortably on what you have stated as a disposable income, and if you're not sure that you can, especially combined with the fact that those figures stated could change considerably for the worse as other posters have pointed out, then personally I would look at other options?

Sorry if this comes across a bit negative, but I have seen numerous close friends go down exactly the same route, to be met with a less than favourable outcome.

dodger1

If you wait until you can afford it you will wait forever. Sometimes you just have to take a chance so take that chance and get on the ladder. You can also use some of the spare money to get income protection or mortgage protection insurance. Of course rates may rise but equally they may not, your salary may rise as well, you have nearly £250 per month spare money and could make that £300 if necessary with a few small cuts. Just save that money for emergencies until a decent sized pot is there, just do it take the leap.

Caveat_Mortgagor

Matt

Your petrol costs have spiralled. Are you moving further away from work? Its seems insane to move further away and commit to living on such a tight budget in the process. As others have said, what if you have car maintenance expenses? - you cant put them off if you are more reliant on the vehicle.

Also, you can get a phone line, free eve&weekend landline calls and broadband for less than £20.

You seem to display a sensible outlook by not counting on your annual bonus. I think you need to show the same level of common sense when making this decision.

Good luck.