Would this be over stretching or safe enough?

mark5

Is your new net income before pension deductions?

The figure quoted sounds more like no pension contribution is being taken into account.

Me and my wife are a year or two older than you we have two young children and have a slightly higher joint income, the way the children have pushed our costs up in the last few years I wouldnt want a 200k mortgage.

Brinkster

mark5 wrote: »

Is your new net income before pension deductions?

The figure quoted sounds more like no pension contribution is being taken into account.

Me and my wife are a year or two older than you we have two young children and have a slightly higher joint income, the way the children have pushed our costs up in the last few years I wouldnt want a 200k mortgage.

Yes, it's after pension deductions, there is a bit of rounding for easier reading so it's not exact but near enough.

The costs of children are something I don't have experience of. What kind of things can I expect? What are the costs that have been pushed up?

Can I ask when you bought your house, and how much your mortgage is? I don't WANT a £200k mortgage, I'd much rather house prices were more sensible! If we had been born 5 years earlier, and everything else been the same, our first property would have nearly doubled in value and we'd probably be living in a £300k property with massive equity at this point.

dimbo61

Or you could have bought in late 2008 or early 2009 and paid far to much!!
Now I like you already because you are not giving £10K plus to the TAX man by paying more than £250K for your new home.
So only 1% stamp duty but thats still £2500
Consider an offset mortgage as you have good savings!!!
I have been with YBS for over 7 years and we took out a 5 year offset fix when we first took on a HUGE mortgage.
Having the money sitting in the offset gives you a good feeling of security.
Good Luck

dimbo61

PS I dont work for YBS and there are plenty of lenders that do offset mortgages like First Direct and Barclays

nearlyrich

Brinkster wrote: »

The costs of children are something I don't have experience of. What kind of things can I expect? What are the costs that have been pushed up?

To be fair children are expensive shoes, clothes etc you can spend a lot if you go designer but even standard school shoes can be £60 a pair these days!!! School trips, birthday parties, I have never been as rich since my children became independent I should change my username to Finallyrich LOL:)

mark5

Brinkster wrote: »

Yes, it's after pension deductions, there is a bit of rounding for easier reading so it's not exact but near enough.

The costs of children are something I don't have experience of. What kind of things can I expect? What are the costs that have been pushed up?

Can I ask when you bought your house, and how much your mortgage is? I don't WANT a £200k mortgage, I'd much rather house prices were more sensible! If we had been born 5 years earlier, and everything else been the same, our first property would have nearly doubled in value and we'd probably be living in a £300k property with massive equity at this point.

We bought our current house in 2006 for 216k with a 140k mortgage which was £823 per month back then, its dropped now due to over payments and moving on to a generous svr.

The house is now worth about 170-180k I think.

Our general household (not mortgage) bills are up about 40% on top of price increases.

Part time childcare after both sets of parents realised what looking after a toddler is like.

Christmas presents, Birthday presents, clubs and fees,clothes/shoes, presents for parties the children go to, holidays cost more, days out at various places.

I found babies are cheap the first year just milk and nappies, we got given so much when they were born we didnt need to buy much for them but that doesnt last!

Various car seats, puchchairs, travel cots, high chairs.

barnaby-bear

Starting wrote: »

evuliuxb wrote: »

Yeah and not all of us get hand-outs from our parents or are allowed to live rent-free or on minimum rent in our parents' gaffe so that we can accumulate savings. In fact some of us have parents who try to sponge off us rather than ever helping us out in any way financially.

Get an education and a decent job part-time/OU, on £30k and live in a shared house - take the small room. I saved £18k paying £270 pcm rent for a box in Cambridge on £26k in 2.5 years; Mrs B-B saved more (on £27k) but by living 6 miles out in a real dump and cycling a lot. The other £4k over the same time period came from click-throughs, matched betting. It sounds like you have gone for lush accommodation or else haven't put work into education/skills/experience to have an ok income. To be honest - the best way to double your savings is to get a date! Doubles it overnight - sounds like the OP did :rotfl:

bitterpill

I would second what Dimbo61 says regarding an offset mortgage. especially as savings rates are low. I love putting my savings away each month and seeing my mortgage payment reduced.:)

Brinkster

mark5 wrote: »

We bought our current house in 2006 for 216k with a 140k mortgage which was £823 per month back then, its dropped now due to over payments and moving on to a generous svr.

The house is now worth about 170-180k I think.

Our general household (not mortgage) bills are up about 40% on top of price increases.

Part time childcare after both sets of parents realised what looking after a toddler is like.

Christmas presents, Birthday presents, clubs and fees,clothes/shoes, presents for parties the children go to, holidays cost more, days out at various places.

I found babies are cheap the first year just milk and nappies, we got given so much when they were born we didnt need to buy much for them but that doesnt last!

Various car seats, puchchairs, travel cots, high chairs.

I'm hoping the grandparents don't back out of childcare! ;-)

We've had a lot bought so far for our baby too, so I understand it won't last forever. Kids are expensive I guess. On the flip side, we save money by not eating out at least once a week and not going to the cinema every week, and other similar things that we did but can't do anywhere near as often as we used to.

IanatSeaton

Brinkster, you will be fine. You and your partner obviously work hard and you have worked out your budget so you know in advance that you will still have money to spare every month after meeting all of your fixed expenses. My choice in your situation would have been to put another £10K down in the deposit and thus reduced the monthly mortgage as well.having large savings at present, even in an ISA is not a grreat benefit, and you would still have plenty in there for a rainy day or to purchase new kitchen/laundry white goods. But we are all different and I have no doubt you will not struggle with your repayments on your mortgage.
- Please just ignore the doubters or critics in here who are obviously very envious of your situation. Good luck in your new home.