Spare cash? How much monthly do you think is a good amount?

Louise1234

We are currently saving for a deposit and figuring out how much to borrow / mortgage payments etc.

How much do you think is a decent amount to have spare a month?

We will have a 6 month mortgage payment emergency fund and a 10k general household emergency fund too before we buy.

Don't want to over stretch ourselves, thank you

TheShape

It's difficult to say. I assume there's two of you applying. What happens if the person with the highest wage loses their job and takes six months to find another? Will that leave you eating into the household emergency fund?

When I remortgaged, I extended my mortgage term from 8.5 years to 30 years because for the same amount of borrowing the repayments were significantly lower (a third of what I was paying). That gives me the flexibility to overpay when the money is available and means that if my income were to drop significantly, the mortgage is still affordable.

Obviously, if I let the mortgage run for a longer term the total interest charge is larger but it's worth considering the term as well as the size of mortgage.

bengalknights

Id say having at least 15% a month in reserve would be idea

No_6

Any thing that is left over,,,, after spending zero on anything
that you don't actually need...ie no holidays,beer,wine,presents
just for a starter.

that's how we bought our 1st house

6