Mortgage - Am I taking on to much...

all4one

Hi

Looking for a bit of reassurance I think really.

I'm 41 and have recently sold my house for 200k from this I will pay the mortgage off and will pocket 176k.

I've put an offer in on a house for 365k so would need a mortgage of approx 190k - this scares the hell out of me but after talking with my parents they say its the right thing to do and in a few years the mortgage will seem like nothing.

If I lost my job which I earn 48k I would probably struggle to get another one paying 30k...

My plan is to get an Interest only mortgage and then continue to pay into my companies share plan where they also pay 15% in.

I do have 23k in an ISA but didnt really want to touch that as I like to play a little on the stock markets.

Am I doing the right thing here ?


Cheers for any advice...

myhouse_2

Doesn't seem unreasonable to me given that you have a good salary.
If I were in your shoes (and actually I will be very soon), I'd be trying to pay back a good chunk of it early to make it less scary. Normally I'd recommend you build up a cash fund to see you through any unemployment periods, but since you have an ISA with money available, that's not so important.

getmore4less

try and find the interest only first

finding one may not be that easy.


Having your salary and your investment plan with the same company is a bit of a risk.

dimbo61

Lenders are moving away from Interest only mortgage and at 41 may want you to take out a repayment mortgage.
If you can afford I would still save into your company share plan and keep the ISA,s as emergency savings.
You need to see what your lender will lend you and use a " whole of market" mortgage broker to find you the best deal.
Think long term fixed and consider offset to make use of your savings
Only my views not advice

Thrugelmir

all4one wrote: »

My plan is to get an Interest only mortgage .

Major hurdle to overcome.

Either repayment or evidence of repayment vehicle.

in a few years the mortgage will seem like nothing

In what context? If interest rates were to rise 3% it will seem like an awlful lot to be paying out every month.

jamgar

Not sure about the above, last week i got a 300k interest only mortgage at a great rate very easily (post office)

Thrugelmir

jamgar wrote: »

Not sure about the above, last week i got a 300k interest only mortgage at a great rate very easily (post office)

What repayment vehicle did you offer?

all4one

I've looked at the other mortgages I don't really think I can afford them at this time, my plan is to save approx 50k and then switch to a more traditional mortgage. I did have an offset on my old house and managed to pay most of it off in half the time.

Forgot to say I've been approved for mortgage as I have over 50% to put down.