Consolidation & merge

davidwood681

Melanie_12 wrote: »

You may have misunderstood, the only reason they're in my name is because I organise all the finances. Each month when he gets paid he keeps only the money he needs to cover his bills in his account and transfers the rest to another account which is in my name. I occasionally let him keep about of money to buy a new game! Haha

In relation to affordability I was just wondering if paying £200 a month out is better than £300 a month. We can afford the mortgage, bills etc as we're paying out now a simular amount and saving at the same time.

:eek::eek::eek:

System

Melanie_12 wrote: »

In relation to affordability I was just wondering if paying £200 a month out is better than £300 a month. We can afford the mortgage, bills etc as we're paying out now a simular amount and saving at the same time.

No. It is the outstanding balance that matters, not so much the monthly repayments. If you're only able to save a couple of hundred quid a month towards the house you may want to have a go over all of your finances, both of you, because if interest rates rise you may find your mortgage repayments rise by that amount or more. Currently you're looking at mortgage repayments at a historic low. If they return to the normal 6-7% that they were for the decade or so prior to 2008 would you still be able to afford to repay then given your current spending?

Might be worth posting a statement of affairs FOR BOTH OF YOU on the Debt Free Wannabe board to see if there's ways to cut back or ways to spend your money smarter on some of your outgoings. Most people set fire to £100s a year unknowingly overpaying for stuff. The more you cut back the more you can save.

ViolaLass

I'm not sure Tarambor is giving you the right info. A lower monthly outgoing WILL look good to lenders. They consider your income and monthly commitments.

Evidence: https://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing

"When you apply for a mortgage, lenders calculate how much they!!!8217;ll lend based on both your income and your outgoings !!!8211; so the more you!!!8217;re committed to spend each month, the less you can borrow."