How much is too much?

sh856531

My partner and I have similar incomes to you (48K + 30K) and we don't really want to buy a property worth more than 160K

To be fair though this is quite arbitrary and is partly due to my debt aversion, wanting to be able to save a modest amount each year and our annual holidays being important to us.

We would rather have a smaller house but be able to have two decent holidays per year.

That said, everyone's prioritise in life are different. 225 doesn't seem outrageous to me - you just need to balance how much you spend on your home vs your other life goals.

I'd also factor in interests raters returning to the long term average when you do your calculations. It can be easy to think that the times we are living in are normal, but over the medium term they are clearly not.

Best Wishes

S