Do we go for a large mortgage now?

Bris79

Does it make sense to get the biggest (but of course affordable) mortgage now whilst we can?

Allowing us to get a lovely big home to enjoy now and if need be later in our lives we can downsize.

We are in our late 30's and in a fortunate position to put down £250k deposit.
Looking at a mortgage of £200k

He is on a good salary £50k basic and I'm self employed with a turnover of around £35k

Or do we buy a smaller home with a smaller mortgage?

ACG

Turnover is vanity, profit is sanity - for mortgage purposes, lenders go off profit (assuming you are a sole trader).

Only you can make the decision, do you want a big house or do you want a smaller house? Do you want larger monthly expenditure or smaller? With a bigger more expensive house comes more council tax, utility bills etc etc.

ploeb

thats almost exactly the situation we were in last year, and we went for it. Actually we were able to borrow the 200k with my 50k income alone, and the monthly payments are affordable.
We didnt end up with a lovely big home tho!

cjm888

Yes go for it. (Especially if kids are planned)Our first buy we went for a financially comfortable 3 bed semi when we could have got a 4 bed detached with our budget. Now a few years down the line with two kids the house is too small and we cant afford the 4 bed detached houses in our area.
Now we have to move further out to afford the big family house now. This time I am going for it and not making the same mistake again.

chelseablue

I would go for it too.


We paid £400,000 for our 3 bed semi, borrowing £230,000.


400k was the most we could spend at the time, I wouldn't say this is our last house, realistically it wouldn't be big enough when children become teenagers/adults

MallyGirl

I would go for it.
My first flat was £42k - exactly 3 times my £14k salary which the max back then when interest rate was 14%
First house with OH (now DH) was £165k and a Project with a capital P but we sold for £415k, after 8 years and much toil, and had paid off mortgage at that point
Current house was £615k but now worth £1m. It is our retirement plan, or part of it at least.
We would not have seen such growth on smaller properties.