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How much is too much to pay?
8 replies
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AsgardsPrincess
Forumite 7 posts
Hello
We are first time buyers, and we have put an offer on a house of 218,000 which has been accepted. The house needs nothing doing to it except a lick of paint here and there, its been beautifully kept and will only need to change some decor to our tastes. It is slightly on the cosy side, but it is still 3 bedrooms and the sellers said they brought up two girls there.
The thing is, I can't get it out of my head that I read the average price of a home for a first time buyer is 180,000.
We can put a deposit down of £35,000 which enables us to have a monthly payment rate of £680 with nationwide on a 2 year fixed term. Is that a lot?
Currently we earn per month, after tax £1300 and £1780 but will pay the mortgage equally. Other regular outgoings (water, internet, electricity, food, council tax etc) add up to about £700 by my prediction
This leaves us with around £980 and £420 each disposable income (after other personal bills like car insurance), but this is subject to change. I am on a well paid but contracted job which could end at the end of 2020, or it could be extended or I could be offered a permanent position. If not, I will have to go back to a job that pays less (I am working for a multinational corporation that pays well) My partner is paid less but there is more scope for progression and earning more in the future, and it is a permanent role.
So my question is, we love the house and its location, but are we paying too much? Should we look for something cheaper? Our offer is accepted but nothings happened yet.
I am asking here because I've no one to ask as none of our friends have bought houses and most people I know are renting, or older people like my parents have already paid their mortgage off.
Please, no abusive answers like last time I posted on here.
Thanks
We are first time buyers, and we have put an offer on a house of 218,000 which has been accepted. The house needs nothing doing to it except a lick of paint here and there, its been beautifully kept and will only need to change some decor to our tastes. It is slightly on the cosy side, but it is still 3 bedrooms and the sellers said they brought up two girls there.
The thing is, I can't get it out of my head that I read the average price of a home for a first time buyer is 180,000.
We can put a deposit down of £35,000 which enables us to have a monthly payment rate of £680 with nationwide on a 2 year fixed term. Is that a lot?
Currently we earn per month, after tax £1300 and £1780 but will pay the mortgage equally. Other regular outgoings (water, internet, electricity, food, council tax etc) add up to about £700 by my prediction
This leaves us with around £980 and £420 each disposable income (after other personal bills like car insurance), but this is subject to change. I am on a well paid but contracted job which could end at the end of 2020, or it could be extended or I could be offered a permanent position. If not, I will have to go back to a job that pays less (I am working for a multinational corporation that pays well) My partner is paid less but there is more scope for progression and earning more in the future, and it is a permanent role.
So my question is, we love the house and its location, but are we paying too much? Should we look for something cheaper? Our offer is accepted but nothings happened yet.
I am asking here because I've no one to ask as none of our friends have bought houses and most people I know are renting, or older people like my parents have already paid their mortgage off.
Please, no abusive answers like last time I posted on here.
Thanks
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Replies
1. Can you afford it?
2. Is the house worth it?
Looking at what an average FTB pays doesn't tell you anything.
The mortgage payment doesn't look high on your income.
If you're sure the property's right for what you need, and you can afford it, then go for it (how much would you pay in rent for a similar property? I'm guessing more than £700 a month)
From a personal perspective I would primarily be concerned about my contract role coming to an end. Would the mortgage still be affordable if you were forced to opt for a lower paid perment role?
There's no need to rush. Get a foot on the property ladder. The dream house can follow if that's what you aspire to owning.
― Daniel Crosby
Median can be useful guide as 1/2 pay more 1/2 pay less.
Still has the problem depend where you live.
If you have done the maths and feel that this is an affordable mortgage for you and you would be happy to pay that to live in that particular house that is what counts. Maybe ask to go for a second viewing or visit the area and drive/ walk past. If you still get the same sense of excitement then it is probably just nerves. If you feel scared/ daunted the second time round you probably need to seriously think about why.
Since then, this kind of sanity-checking is done by the banks when you are applying for a mortgage, so I would have to assume you can afford it.
Perhaps you would feel more comfortable about the nominal £218k if you thought, rather - before buying, if you had an opportunity to rent a house as nice as that for £680pm would you have thought that was a good deal? It sounds from what you've written that you will be very happy there.