Am I trapped by my mortgage?

ixwood

Are you serious or just rubbing it in? lol.

You have more cash after you pay the mortgage, than most would have earnt before tax.

If you really strugggle, then it's madness. What do you do with the money?

If I earnt 70k, I'd be semi-retired and mortgage free in 10 years.

Kaz2904

I have friends who are paying out >63% to fund living costs. I'm sure they'd be happy to pay out less but it's not possible for a lot of people.

ailuro2

paprichaat wrote: »

We bought a house 18 months ago which we cannot comfortably afford.

You can cut back on other outgoings- reduce Sky packages, eating out less etc to ease the pain a little- I'd love to have £2670 left after paying my mortgage:rolleyes:

groatie_queen

"I'm left with barely 4k a month".... that's over 4 times what I take home... and I know others on this board take home much less than you, but like me, are paying a mortgage AND saving extra whenever possible.... it's all a question of priorities... and we all have blind spots when it comes to what we spend.

please post an SOA and we'll do what we can to help you get your finances sorted out, obviously you have outgoings we know nothing about but we are all here to help each other.

Best wishes
GQ

Pinklepurr

Many people live up to their income or beyond, regardless of how much or little they earn. The OP has an excellent salary, many people I am sure are envious of that, but if he/she doesn't budget properly or look after their finances, it just slips through their fingers. The only way to see where the money is going it to post a SOA as others have suggested to find ways to cut back.

Martinslovechild

Another Interest Rate rise is imminent, meaning your 37.5% will become 40%. If there are further increases (the markets have pencilled in at least one further one before the end of the year), then you'll be fast approaching 45% of your income to service your mortgage.

The screws are tightening for all homeowners slowly but surely.

InMyDreams

Martinslovechild wrote: »

Another Interest Rate rise is imminent, meaning your 37.5% will become 40%.

But OP is fixed until Jan. Then again, when he might be able to get in Jan is likely to be MUCH higher than what he got 18 months ago.

I think you have to think about what's going to make you and your family happiest. £2500 certainly does sound like more than most people have to live off (even before they've paid their mortgage) but then a half million pound house is more than most people have too.

You have to prioritise. 37.5% of your take home certainly sounds like it should be doable, but if you've followed all the advice given on this site about how you could reduce your outgoings, and that's going to make you all miserable, then you have to ask yourself is your house worth it? Yes, your house is an investment, but it's not like other investments because it's also your home. You can't think about it as clinically as other investments. If you really do love your house that much, then it sounds like something else has to give. As to what, that's difficult to say when we don't know what you spend £2.5K / month on. Cars, holidays, expensive meals out might be easy to cut down on for example, but if we're talking children in private schools, then it might be harder to explain to them why you're pulling them out of schools they may be very happy and settled in.

As for going interest only... I'm all for interest only mortgages, but be very careful that this doesn't turn into a long-term position. Only consider interest only if a) you are very confident that your income will improve reasonably soon or b) you are confident you can put the difference into some other repayment vehicle. From your posts, until you give us a clue to some sort of SOA, I'm not sure that either of these applies to you.

itgirlinuk wrote: »

but remember paying the mortgage off is an investment and also another form of saving.

Sorry to be pedantic for a second...

Paying off your mortgage can indeed be thought of in terms of a form of saving (earning the rate of interest that your mortgage costs). But it is not an investment. Buying the house in the first place was the investment. That investment goes up or down irrespective of how much money you owe the bank.

Pandora123_2

Pinklepurr wrote: »

Many people live up to their income or beyond, regardless of how much or little they earn. The OP has an excellent salary, many people I am sure are envious of that, but if he/she doesn't budget properly or look after their finances, it just slips through their fingers. The only way to see where the money is going it to post a SOA as others have suggested to find ways to cut back.

I used to know someone like that. He made over £100k per year but was always short of cash. If he wanted something, he bought it, never mind if he could afford it. Then a bill that he "forgot" about would present itself and there would be a big panic as he tried to figure out how to pay it.

:A

Jonbvn

Pandora123 wrote: »

I used to know someone like that. He made over £100k per year but was always short of cash. If he wanted something, he bought it, never mind if he could afford it. Then a bill that he "forgot" about would present itself and there would be a big panic as he tried to figure out how to pay it.

:A

I am extremely fortunate to take home more than the OP. However, even with this relatively large amount of money it is amazing how it slips through our fingers.

This board has helped tremendously in reducing the needless waste of money.

Conor_3

paprichaat wrote: »

Here's my dilemma....

I'm left with barely £4k a month.

And? Bloody hell. MY GROSS TAKE HOME is just over 1/4 of that and I'm hardly struggling.

Stop wasting money if you can't live on £2500 a month after the mortgage.

Struggling with a repayment mortgage? If you've got £2500 a month to live on after paying it, you ain't struggling. If you had £250 a month, then you would be.

Methinks you need to get a grip.

Conor_3

paprichaat wrote: »

Has anyone got a solution?

Yeah.

The only things you NEED are gas, electric, water, council tax, food and clothing. Write down what you spend on those. Deduct that from the £2500 you have after the mortgage.

THE FIGURE THAT'S LEFT IS WHAT YOU SPEND ON NON ESSENTIAL FRIPPERIES.

That spending can be cut down or eliminated completely. You are in full control of how much money you have because it's you who is choosing how to waste the thick end of £500 a week on rubbish.