Can we afford this - much bigger mortgage...

marathonic

moneyistooshorttomention wrote: »

So, fine if she is determined there won't be any children unless and until you can afford them or not to have children ever, and you are both agreed that any "accidents" in that respect will be dealt with, rather than lived with, iyswim.

I think this is a bit of a controversial and touchy topic to be discussing on a homebuying thread. It's a highly personal subject and not exactly a topic any of us can advise anyone on.

bouicca21

Personally, if I were young enough, I'd go for it. If your job is reasonably safe, if you can look forward to salary increases/promotions, then the chances are that within 5 years that repayment will seem ok. What you do have to do is to calculate the repayments on something like 7-10% interest rates. And only you can know how far you are prepared to scrimp and sacrifice other aspects of life style in order to get a better house.

The big question is, would you regret not making the move?

ukcarper

Your take home pay would be £3800 a month if you achieved lower amount of equity you would need a £265k mortgage (savings covering stamp duty, agents fee etc). At 4% that would be £1400 a month and at 6% it would be £1725. I would say they are both affordable on your joint income but if you lose either income you would be in trouble. I don't know if you would be able to borrow £265k.

shop-to-drop

How about taking the mortgage over a longer term if you are young enough? If you get a deal which allows you to overpay then this would give you a degree of flexibility to your payments.

jaylee3

redrabbit29 wrote: »

Good point!

I overpaid on my place a bit, but £300K isn't a huge house, it's a detached 3 bed if I'm lucky.

There is NO DANGER of me losing my job, but my GF isn't in the same position.

I almost think this is skipping a house move, i.e. normally I would move from here, to somewhere else AND THEN to the £300k place.

My net taake home is about £1900, GF is about £1600.

Think we can afford £300k house

Seems you have already made up your mind, so I'm not sure why you bothered posting this thread.

I think you're living in cloud cuckoo land if you think there is NO DANGER of you ever losing your job. No person on the PLANET can say that. Also, you are not going to have as much to put down on this house as you think, and a mortgage of £260-£270K on 60 grand income IS a large chunk out of your income.

And yes, the thread title DID imply it was a much bigger house, so that is why you got people saying your bills would be much higher.

I would never take on a mortgage this high, on a frankly, not very massive income. For the south east; your joint income is not very high for two people. Also, I have never understood why people have to absolutely max themselves out when it comes to a mortgage. Just because your income allows you to borrow £200K or £250K whatever, that doesn't mean you have to borrow that much. As a few people have said; if you lose an income or a new baby comes along; you're stuffed!

I would say don't do it; but as I said, you appear to have made up your mind anyway, despite many people on this thread advising you against it.

Atomix

jaylee3 wrote: »

Seems you have already made up your mind, so I'm not sure why you bothered posting this thread.

I think you're living in cloud cuckoo land if you think there is NO DANGER of you ever losing your job. No person on the PLANET can say that. Also, you are not going to have as much to put down on this house as you think, and a mortgage of £260-£270K on 60 grand income IS a large chunk out of your income.

And yes, the thread title DID imply it was a much bigger house, so that is why you got people saying your bills would be much higher.

I would never take on a mortgage this high, on a frankly, not very massive income. For the south east; it's a low income for two people. Also, I have never understood why people have to absolutely max themselves out when it comes to a mortgage. Just because your income allows you to borrow £200K or whatever, that doesn't mean you have to borrow that much. As a few people have said; if you lose an income or a child comes into the equation; you're stuffed!

I would say don't do it; but as I said, you appear to have made up your mind anyway, despite many people on this thread advising you against it.

The answer of reason...:T

Also just to add - your doubling your mortgage (£133k to £260-270k) for 1 more bedroom... That perhaps you don't need right now? Why risk it? Why burden yourself? - good luck with it all

ukcarper

jaylee3 wrote: »

Seems you have already made up your mind, so I'm not sure why you bothered posting this thread.

I think you're living in cloud cuckoo land if you think there is NO DANGER of you ever losing your job. No person on the PLANET can say that. Also, you are not going to have as much to put down on this house as you think, and a mortgage of £260-£270K on 60 grand income IS a large chunk out of your income.

And yes, the thread title DID imply it was a much bigger house, so that is why you got people saying your bills would be much higher.

I would never take on a mortgage this high, on a frankly, not very massive income. For the south east; your joint income is not very high for two people. Also, I have never understood why people have to absolutely max themselves out when it comes to a mortgage. Just because your income allows you to borrow £200K or £250K whatever, that doesn't mean you have to borrow that much. As a few people have said; if you lose an income or a new baby comes along; you're stuffed!

I would say don't do it; but as I said, you appear to have made up your mind anyway, despite many people on this thread advising you against it.

Do you really think £1400 is a large chunk of £3800 even at 6% there will be £2000 a month to live on.

jaylee3

ukcarper wrote: »

Do you really think £1400 is a large chunk of £3800 even at 6% there will be £2000 a month to live on.

For a start, the mortgage repayment is highly unlikely to be £1400 a month, and is much more likely to be closer to £1650-1700, or more ... especially as the OP is not going to have as much 'spare' or 'equity' as they think.

And no matter how much anyone supporting this tries to flower it up: £270K is a huge mortgage, for a joint income of £60K. They are literally maxing themselves out to the hilt. As I said, if something comes along suddenly, like a job loss, or a big bill, or an interest rate rise, or if they choose to have a baby, (or one comes along unexpectedly!) they will literally have NO leeway and they will be stuffed financially.

Like I said, just because they CAN borrow up to £270-£280K (if the bank allows it!) that does not mean they should! After all, this is almost 5 times their joint income!

Seriously, if the interest rate shoots up by just 2%, the payment would go up around £300 a month on a mortgage that high.

The OP asked for opinions and views, my opinion is, don't even think about it.

mrginge

Generally speaking, this the same cycle as we've had previously.
Come out of a recession.
People start to feel more confident (no danger of losing my job ),
They look at what they can afford today.
They add in all the upside as though it was guaranteed (My pay WILL go up by x000).
They ignore all the downside (moving/refurb costs, higher running costs, expanding family costs, risk of job loss, insurance, higher interest rates ...)
They get a mortgage that is affordable today.
'Something' happens in the next five years and they end up in the you know what.

Of course that will not happen to everyone that stretches themselves, but it absolutely can.

Personally i think a bigger house and bigger debt is less favourable than a smaller house and higher disposable income when it comes to the route to personal happiness.

ukcarper

jaylee3 wrote: »

For a start, the mortgage repayment is highly unlikely to be £1400 a month, and is much more likely to be closer to £1650-1700, or more ... especially as the OP is not going to have as much 'spare' or 'equity' as they think.

And no matter how much anyone supporting this tries to flower it up: £270K is a huge mortgage, for a joint income of £60K. They are literally maxing themselves out to the hilt. As I said, if something comes along suddenly, like a job loss, or a big bill, or an interest rate rise, or if they choose to have a baby, (or one comes along unexpectedly!) they will literally have NO leeway and they will be stuffed financially.

Like I said, just because they CAN borrow up to £270-£280K (if the bank allows it!) that does not mean they should! After all, this is almost 5 times their joint income!

Seriously, if the interest rate shoots up by just 2%, the payment would go up around £300 a month on a mortgage that high.

The OP asked for opinions and views, my opinion is, don't even think about it.

They would have £2000k a month after paying mortgage at 6% you need to earn over £30k a year to get that. Plenty of people earn that or less and survive even after paying housing costs. The thing the OP has to consider is children if he is prepare not to have children or at least wait until his earning increase it should be do able.