£950 monthly mortgage payments- too much?

bylromarha

Sounds fine to me. Can I suggest that you begin living NOW as if hubby has gone down to 3 days a week?

If worse case scenario is an income of £2750 and a mortgage payment of £1200 (rise in interest guess?) then investigate if all the regular bills fall comfortably within the £1550 you'd have to live on.

Overpay as much as you feel comfortable, then when you remortgage in the future, you may be able to reduce the term at a quicker rate. We've done that through the years.

Also you're talking children - have you talked about childcare costs? One in childcare is financially doable for people - 2 in childcare could be the tipping point of OH giving up work altogether.

Bottom line is the figures look good now and no one is EVER financially fully prepared for kids. You just cut your cloth accordingly as life changes.

regprentice

Childcare costs are significant if you don't have family/friends to rely on. We don't live near our families, but even if we did the grandparents still work full time so couldn't act as childminders.

We are currently paying £1250 a month to put two children to nursery 3 days a week (£48 each a day). Both my wife an i use our full allowance of childcare vouchers but the monthly bill is still more than twice our mortgage repayment.

My wife would be better off not working, except she needs a life too. It is short lived however an should be over in a few years.

Other child related costs haven't been significant, really food/utility/fuel inflation has had a greater effect on our finances over the last 3 years than the children.

TBagpuss

If you are currently paying £650 a month in rent, why not start putting £400 a month into savings? It will give you a feel for how your budget works with the level of monthly mortgage you are looking at, plus a £100 per month buffer so when you buy you can establish a sinking fund for can repairs etc you may have on the property,or start to make over payments, and so you have some leeway if interest rates start to rise.

In the shorter term, the money you save can go towards your savings for a deposit.

the figures sound pretty do-able to me.

ethank

You don't say your age, but if your retirement age is before the 35 years is up, it may be a problem.

chambta

Assume you'll still be of working age and needing somewhere to live I personally can see no problem with 35yr mortgages.

racing_blue

swgl wrote: »

ps. I would go for 25 years if I were you.

Why? They can always choose to overpay to a 25 year schedule, or any other that might suit them at the time. 35 years gives affordabilty now with that sort of flexibility.

happycamel_2

Nursery fees are the biggest child related cost, mine is £76 a day per child. I reckon all in two preschoolers are costing me £500 a month plus nursery. I could make it cheaper with 2nd hand clothes but nappies, food, petrol, toddler classes and toys add up.

Thrugelmir

swgl wrote: »

ps. I would go for 25 years if I were you.

I would second this. Base your affordability on a shorter term. You've then room to maneouvre at a later date. While 35 years reduces your initial repayments. You'll be paying very capital back. So will feel any rise in interest rates in the future. How comfortable is your budget at 6%, 7% or even 8% interest rates?

swgl

chambta wrote: »

Assume you'll still be of working age and needing somewhere to live I personally can see no problem with 35yr mortgages.

You pay about £60K less in interest charges for a mortgage of £200K at a 4% -- that is a good enough reason for me. This is just an illustration -- that is the difference between 25-yr and 35-yr.

EGGP1878

Sounds fine to me. Me and my partner are in a very similar situation ourselves.

In the middle of buying a 175k apartment with a 5% deposit over 35 years (we're 23 & 21).

Just over £800 a month mortgage but we also have a £185 service charge and ground rent on top...

Combined salary after tax is £3,400 per month. So you should be fine.