Affordability opinions

RebG

Hello,

Seeking some advice/opinions on our current situation as we genuinely don’t know who to ask! Our solicitor and mortgage adviser don’t seem too forthcoming...

We have just sold our first flat and now have around £75k when you add equity and profit together. Add on savings and we have about £140k in total. We have a £300k mortgage in principle approved.

What I’m wondering is, would we be being extravagant to spend £400k on a property? We can afford repayments on the mortgage but wondering if we are being ridiculous buying a property this expensive with 75% LTV? Maybe this seems a bit obvious!

Thanks

TamsinC

going to depend where in the country you are - in London you won't get much for that, in Wales you will get 4 bed. But your money, your choice.

Thrugelmir

What you spend on a property is a personal decision for you alone to make. There's more to life than repaying a mortgage in my personal view.

GoingOn30

Yes I would say don't get greedy, and don't chain yourself to repayments that will tie you down until you are 65+, you can't bet on being healthy enough to keep working full time until then.

kingstreet

What will you feel comfortable paying each month?

What kind of mortgage do you want, ie five year fix?

What will that comfortable monthly payment get you eg on a five year fix?

Add that to your deposit.

That's your preferred/comfortable purchase price.

amnblog

Many buyers when scaling up, certainly in the South East, later regret not securing the best place available.