Advice please!

skizz_b

Thrugelmir wrote: »

I merely reply to what I read.

Our genes determine our personalities for life. At a base level whether we are optimistic or pessimistic, risk takers or cautious in nature. When it comes to handling of personal finance more often or not this is reflected in the data that CRA's compile. Statistically defaulters are likely to reoffend in the future, that's a fact.

Of course, wasn't disagreeing with you - facts are facts. Especially in the eyes of the banks!

Stand_up_Juno

Skizz,

Your joint salary is 75k.
You earn 40k = take home of £2,500pm
Partner earns 35k = take home of £2,200pm
Assuming no deductions for pensions, loans etc.

You have a 50k deposit.
You want to buy at property for £400k (4.5 x joint earnings)
Allow a minimum 15k for stamp duty, fees, buying costs
That leaves 35k deposit
You'll have to apply for a 90%+ mortgage

At a conservative 3.5% 25 year repayment mortgage your mortgage is £1,750pm
At 4.5% £1,950pm
At 5% £2,050pm
At 6% £2,250pm

I lived through the days of 15% interest rates so let's not even go there.

You are gambling on interest rates never rising and house prices never falling, your partner never taking time out for kids (which cost) and both of you remaining forever in full time employment. I don't think you'll get the mortgage in the first place because you don't earn enough, which is the best thing that could happen to you.

If you feel buying in this ponzi market is for you, maybe have more realistic expectations, which I would say is in the region of £200k.