% of salary on mortgage payment

Taggo

Hi,

I guess I'm just looking for some opinions here on. What people are comfortable with spending on their mortgage each month, and given my figures of people would be happy spending what I'm considering.

My net salary £1600, (never been lower than £1650, usually more but I want to round down income and round up outgoings, have high pension contributions)

Looking at a property roughly £215k, 10% deposit, mortgage payment, rounded up £800

Factor in council tax and all my outgoings, food fuel insurance it's looking like £1500 (no outstanding credit commitments) so it's achievable with not much left over.

My jobs very stable.

The house ticks all boxes and we won't outgrow it due to expanding family etc so I see it as long term.

What's people's opinions on spending 50% of salary on a mortgage.

As a side my partner earns 800pm part time, but I don't want to include this as although she's never been out of work, if she decides to take time off for another child I want to know we can do this on my wage.

Obviously only I can decide if this is a good idea but would love people's thoughts. Thanks.

Dettol

It does sound quite a lot.

My mortgage repayment is £600 and income is roughly £1800 take home but can rise to £2300 some months depending how much over time i feel like doing.

getmore4less

There is no right % its down to personal circumstances.

What are your housing costs now?

Your numbers are comfortable while the wife is working with room to save or overpay.

Tight if she gives up.

lets say 90% LTV 2.5% looks like 30years

£770 30y
£700 35y
£650 40y

Only £400 of that is interest(rent on the money) the rest is savings, building equity, reducing debt.

If this is a long term place and not costing a lot more than your current housing it could be a very good option to stretch a bit now.

Taggo

I'm currently renting a smaller place for £750 however this is my first month in it as I moved to a new area. I'm use to paying less.

My previous mortgage was £470 but I also had 2 cars on finance at £380 total so the difference is there anyway as I paid off the cars when I sold up, I don't intend to change cars now for many years, I still have long warranty on both.

I'm looking at 30 year, initially fixing for 2 with Halifax, I'm struggling to find anyone else who will accept my partners fixed term contract (this isn't a worry to us, she will end up on a perm contract, it's just the way her job always works in a new council) and when the fix is up we will be able to shop around. I've already seen a broker so can't do much better than I am now.

As I say I'm just after opinions, in paper it works, if rates rise and she's not working then it's an issue. But there's no reason she won't work really I'm just being cautious.

FTBuyerGlasgow

Even with the 10% deposit your affordability of a £215k mortgage is a stretch.

Based on x4.5 of joint annual salary you'd need about £48k joint, based on your numbers though I don't think you have this?

Taggo

I already have my agreement in principle, can borrow 223k.

Taggo

As I mentioned I've rounded down, my salary is £31250, hers £10699.

Taggo

Sorry, typo, £201k I can borrow, still enough for what I'm needing.

cjv

Have you considered a longer term Mortgage? if your age allows it. That will reduce your monthly payment, but you can overpay if/when you can afford to.

Taggo

Yes this is on a 30 year term, I retire at 60, the longest term they would give was 33 years and that didn't make a huge difference monthly. I'm not to worried as il reduce that term later when the better half goes back to work full time/If I manage promotions.

FTBuyerGlasgow

Sounds like you could make it work on those numbers.

Bare in mind you'll have moving fees, conveyancing costs etc and any unexpected costs (such as a boiler breakdown) could put a spanner in the works.