How does this look...

surrey_mommy

Hi all,
First time poster - please go easy on me!!

Just looking for some reaction to a mortgage we are likely to sign to, having a bit of a wobble today so thought I would seek wider opinion.

We are lucky, we have 200k equity in our house, and some savings.. We live in the south east, family of 5. No child are costs, I have a job in a nursery p/t clears about £100 pw.

Hubby earns £98k and bonus, although nothing this year, usually about 10k.

We are looking at a house that would mean mortgage of £340k - can secure 2.49, so at 25 years that's about 1.5k PCM. We are both 37

Any thoughts, if you we're in our shoes would this keep u up at night????

All kids are in normal states schools,so no extra cost there....


Thanks in advance

Lotti

bclark

So you bring in about £5500 a month between you after tax?

The mortgage sounds very serviceable to me.

lawriejones1

It depends how secure your husband's income is. If he's self-employed or in a risky occupation then I'd be concerned. If he lost his job there's not much wiggle room - but if he's secure then it should be OK!

surrey_mommy

Thanks, it's secure ish..... But aren't we all a bit in fear of our jobs... He is thinking about moving on, but scared re this move and fear that moving jobs and home is a it much in a few months...

I guess the biggest fear is a hike in rates, if BR was to creep toward 2-3 pc, that would make life uncomfortable.....although I guess there are many focusing that boat.....lets hope it does not set sail!

Thanks
Lotti

lawriejones1

It's a very expensive house, but I guess in London and the outskirts it'd probably get you a 2 bed flat.

When my partner and I put in an offer we ensured that we could pay the mortgage even if the interest rate increased to about 8%

kingstreet

A slightly higher rate, for perhaps a five year fix, may improve the comfort factor in what you are doing.

If you are concerned about base rate going up to 2% or 3%, you sound like a prime candidate for a longer term fix.

pinkteapot

Just remember to move house before he changes job. A lot of mortgage lenders don't like it if you haven't been in your current job for at least 6 months. Easier to move house and get a new mortgage with his current work history, then change jobs right after.