Are we mad to consider borrowing the max?

getmore4less

does the £1500pm never get spent on anything

How have the savings grown over the last 2 years is the real indicator of what you can save if you have been doing £12kpy then I think you are fine.

chelseablue

No we have it in an account that is just for a house deposit


Last year we didn't save much as I was on maternity leave.
Since February this year we have saved just over £7,000


If we keep going at £1,500 a month then in 2015 we would have saved approx. £14,000


My partner got a £10,000 pay rise in June which has helped us massively

getmore4less

Get as long a term as you can, pay/save like it is a 20y loan and hope the rates don't go up too quick.

Job loss or more kids look to be top of the mess things up list.

chelseablue

If we did have another baby some serious belt tightening would have to happen

Thrugelmir

Personally I would borrow the amount you are comfortable with over a 25 year term. You never know what the future may bring in terms of health, job or relationship. All of which can have a profound impact on ones finances. The dream house can still always happen. Being overly optimistic just means you could have further to fall.

cns06

We regret not maxing ourselves out 10 years ago. Its made moving now much, much more difficult. We have also lost out on the 5 years of low rates on the larger sum and the growth on the larger value property. But only you know what risk you are willing to take.


We were in a position where our bank would have probably lent us 2/3 times what we actually borrowed. But we were terrified of the sums involved and we were more comfortable with something smaller. Now, as things have turned out we should have just gone for it.


But I guess you should not take *any* gamble on your own home - go with the safest option really - which I also understand.

cns06

Just to clarify - in terms of making it more difficult - in that we need to move now as we outgrew our house rather than buying the right house the first time and all the problems with getting a mortgage in the current market which if we bought the right place in the first place which we could have easily afforded we would not be moving now. IYSWIM.

Thrugelmir

cns06 wrote: »

We have also lost out on the 5 years of low rates on the larger sum and the growth on the larger value property.

Hindsight is wonderful. My crystal ball isn't forecasting how the future is going to pan out once the financial anesthetic wears off.

lumscx

we are facing similar decision here, family of 4 have just over £5000 take home pay on a single income are going to borrow 420K.. so don't think you are mad here.