260k mortgage on 65k salary doable or silly?

Louisdawg

sirmosh wrote: »

I totally agree, there may only be two of us but we spend under £300 for both and that's without being stingy at all.

Each to their own I suppose but it does seem like a lot of money - I couldn't think how you could get through that much food for 3 people.

Louisdawg

RenovationMan wrote: »

"260k mortgage on 65k salary doable or silly? "

We had a £300k mortgage based on a £60k salary and it's been fine. The main deciding factor on whether you should take on a large mortgage is your attitude to risk. Some people think having a £500k mortgage is fine, other people think having any mortgage at all is risky. This is why it's pointless asking people on the internet for this kind of advice, because only YOU know your own risk profile.

Valid point - I suppose I just look everywhere for angles that may not be blatantly obvious to myself.

I know people balk at having such a large mortgage but what's the alternative? It would be a calculated risk but other than not being able to pay the bills I don't think the price of it would tank.

You obviously took the risk and are doing well on it at the moment - do you think my original budgetary figures for monthly spends are close to the mark in post #1?

Cheers

Louisdawg

RenovationMan wrote: »

"260k mortgage on 65k salary doable or silly? "

We had a £300k mortgage based on a £60k salary and it's been fine. The main deciding factor on whether you should take on a large mortgage is your attitude to risk. Some people think having a £500k mortgage is fine, other people think having any mortgage at all is risky. This is why it's pointless asking people on the internet for this kind of advice, because only YOU know your own risk profile.

Also if you don't mind me asking - how were you able to clear off 50k of your mortgage on a 60k salary in 21 months - excellent going!

pinkteapot

Just make sure you do a full budget first.

How big is the house? Our bills (excluding mortgage and food) are £420 a month in a 4-bed.

How much do you currently spend on food? Make sure you know and budget for it as it may be more than you think if you don't add it up at the moment.

£1,000 is a good amount but do you run a car? Our two cars cost us £2,300 per year and that doesn't include petrol. When you add up MOT/service, insurance, road tax, it adds up.

Also nothing in your budget for holidays (if you take them).

As people have said, a lot of families manage on substantially less. Just make sure you've covered everything that you currently spend when looking at the figures. If it's going to mean a drop in your current spending/living standards, go into that situation with your eyes open.

Last thing - to the poster on £1k a month for food for three people - what are you buying? There's two of us and I worked out that last month we spent £350 and I commented to MrTeapot that we should really be able to spend less than that. We eat well on what we spend; you must be having fillet steak every other night! Or eating out a lot....

RenovationMan

Louisdawg wrote: »

Valid point - I suppose I just look everywhere for angles that may not be blatantly obvious to myself.

I know people balk at having such a large mortgage but what's the alternative? It would be a calculated risk but other than not being able to pay the bills I don't think the price of it would tank.

You obviously took the risk and are doing well on it at the moment - do you think my original budgetary figures for monthly spends are close to the mark in post #1?

Cheers

If you have £1k left over after all of your outgoings have been taken care of, plus your wife is yet to go back to work then I doubt you have too much to worry about. You might try and see if you can get an interest only mortgage and then if anything goes wrong financially you'll only have to find a fraction of your mortgage each month. Our mortgage costs are currently £530 per month.

Louisdawg wrote: »

Also if you don't mind me asking - how were you able to clear off 50k of your mortgage on a 60k salary in 21 months - excellent going!

We have a lot of savings in bonds and as these mature we pay them onto the mortgage.

totallybored

If you do have 1k a month left over then it should be fine. Are you sure you do have that much though or do you just think you have? Money has a way of disappearing very quickly without you realising you're spending it! If you currently do have 1k left each month that you're saving though then a bigger mortgage won't be a problem.

ali-t

OP I am 35 and recently took out a 30 year mortgage with very a very good interest rate. I had quite a good LTV so got good rates but the borrowing is quite high when put against my wages but it is my dream forever house.

My plan is to overpay when possible and the trade off was for smaller repayments to allow me to build up emergency funds again. Could you do something like this to ensure that you can afford the payments longer term. I don't intend to still be paying a mortgage on this house when I am 70 but this still allows me to have freedom, a fab house and cash in my hand.

advice_please_2

RenovationMan wrote: »

"260k mortgage on 65k salary doable or silly? "

We had a £300k mortgage based on a £60k salary and it's been fine. The main deciding factor on whether you should take on a large mortgage is your attitude to risk. Some people think having a £500k mortgage is fine, other people think having any mortgage at all is risky. This is why it's pointless asking people on the internet for this kind of advice, because only YOU know your own risk profile.

What's your monthly mortgage ?

RenovationMan

advice_please wrote: »

What's your monthly mortgage ?

Already said it a couple of posts up. Why?

advice_please_2

Thanks
Missed the other posts

Ah I see interest only