Need some reassurance on my new house

feralspecies

Hi

I’m looking for some expert advice and reassurance that I’ve done the right thing buying a new house. I’m a natural worrier and suffer from anxiety.

My wife and I have sold our house which we bought 6 years ago for 180 for 240.

I have put 120k deposit on a 4 bed ex show home near the Cotswolds which cost £425000, if comes fully furnished, and they paid my stamp duty and solicitors fees. My mortgage will go from £571 to £1200pm.

Between my wife and I we earn about 120k. I have a 16k car loan which will be paid in 2.7 years, but no other debts, and I have about 105k in savings.

I know this all sounds very silly and I know I’m not in a bad position, but I’ve always been super cautious and panicky about money or losing my job and not being able to provide. my brother had a very tough time and went through serious mental health issues due to debt.

I don’t really have a lot of outgoings and save about 1000 a month currently.

Have I made the right decision, is upsizing from a cheap house to a much more expensive one been a bad decision before brexit?

Thanks in advance.

davidmcn

If you've already put £120k deposit on it (really?) then it sounds a bit late to worry about whether it was a good decision.

Thrugelmir

If you are uncomfortable with the level of debt that you've taken on. Overpay the mortgage. Whatever the future may hold. You'll have a sizable amount of equity to play with.

feralspecies

davidmcn wrote: »

If you've already put £120k deposit on it (really?) then it sounds a bit late to worry about whether it was a good decision.

Very true, its too late now I suppose. When I bought my first house I used help to buy, which I paid off in full after 4 years, plus with the increase in value I had a lot of equity. When you say "really" do you mean I shouldn't have put it all as a deposit on the next house?

feralspecies

Sorry I should add, I’m 33 and the total mortgage I have taken is 305k

lewis_hardwick

£120k joint earnings.
£120k deposit.
£60k equity in current home.

I think you're all good. Enjoy it!

dimbo61

With £105,000 in savings I would consider an offset mortgage.
Maybe a bit late now ?
Are you paying enough into your pensions ?
Overpay the mortgage each month if your savings are earning less than mortgage rate !
Nothing wrong with being careful and enjoy your new home.
Buy quality items for it.

dimbo61

What is the interest rate on the car loan ?
Could you save by paying it off early ?

LRmortgage

It looks like you’re in a decent position to me.

Have you considered the various insurance options available in the market such as income protection, redundancy cover, life and critical illness insurance. Get some expert advice, these should give you some further comfort.

Southend1

You are in a very fortunate position to have such good earnings. Way above average. What on earth are you worried about? Lots of people can barely afford to pay the rent/ mortgage and eat properly. Are you sure you don’t have very high outgoings if you only save £1k a month though? Might be worth doing a budget to check exactly where all your money is going. Apart from that just enjoy your new home.

davidmcn

feralspecies wrote: »

When you say "really" do you mean I shouldn't have put it all as a deposit on the next house?

It seems a vast amount. Do you mean you've exchanged contracts, and handed over 28% of the price as a contractual deposit, rather than the more usual 10%, and are now waiting for the house to be built? Who advised you to do that? Are solicitors safely holding the money, or are the builders now spending it, and have just used you as an interest-free lender rather than getting the money from their bank?