How much would you stretch

Redwino222

Income around £70k, equity around £100k, 41 years old plan to retire at 65.

No children, Single, no debt (apart fro existing mortgage) no expensive hobbies.

what oils you advise my house budget should be? 

grumiofoundation

If you borrow 4.5 x salary (£315,000), use all equity for deposit and get a 24 year term max house price looks like ~£415,000. Monthly payment (based on  interest rate of 1.8%) of ~£1350.

Whether you can/want to spend this only you can answer.

How is your pension provision etc? 

Redwino222

Thank you.

have solid pension provision - final salary.

i could stretch to that payment, but savings would take a hit.

i currently save a lot, £1200 a month.  Need to think about how much I am comfortable reducing this.

maybe should look at houses around £300k.

this is where being single is tough - no one to talk it through with, or share the risk!

fizzgog

We're stretching ourselves, we bought an apartment as our retirement place 10 years ago, but, have been caught in the 'ominous' leasehold trap, so we've sold up at a massive loss and taken a mortgage out of £95k (£35k deposit)over 12 years which will take us to 70/68 years of age. And, we've got the full house to revamp, new kitchen,bathroom etc .... but at least it will be 'ours' at the end of our Mortgage.

MFWannabe

Redwino222 said:

Thank you.

have solid pension provision - final salary.

i could stretch to that payment, but savings would take a hit.

i currently save a lot, £1200 a month.  Need to think about how much I am comfortable reducing this.

maybe should look at houses around £300k.

this is where being single is tough - no one to talk it through with, or share the risk!

It depends what property prices in your area are 
What property would you be happy with? 

Personally I wouldn’t fully stretch myself in your position, I would find a property I’d be happy with which would be in a comfortable budget and mean I could still save, have holidays, meals out etc (when we can!) 

getmore4less

Redwino222 said:

Income around £70k, equity around £100k, 41 years old plan to retire at 65.

No children, Single, no debt (apart fro existing mortgage) no expensive hobbies.

what oils you advise my house budget should be? 

£70k pa  is around £4k a month net(maybe a bit less if big pension payment.

£1200pm saving 
How much do you have saved?
What are you saving for?

if no expensive hobbies where is the other £2800pm going?
Regular bills might account for £400
Food say £200
car say £200
holiday(when we can have them) say £200
Mortgage must be tiny if moving upto £300k is a stretch  
lets say £500pm

Where is the other £1300 going?

fill in one of these it will help understand where your money is going and what might be sensible.
(sometimes a now and a what if I moved SOA are worth doing if a lot is changing)
https://www.lemonfool.co.uk/financecalculators/soa.php

Redwino222

You are absolutely right - the money is probably frittered away, more recently on internet shopping😂.

i have done the soa and the higher mortgage should absolutely be affordable.

Not saving for anything in particular.  Rainy day.   

jimjames

Redwino222 said:

You are absolutely right - the money is probably frittered away, more recently on internet shopping😂.

i have done the soa and the higher mortgage should absolutely be affordable.

Not saving for anything in particular.  Rainy day.   

Does that mean you also have savings to add to the amounts listed in #1? That could reduce the mortgage requirement

Redwino222

I don’t have huge savings - about £25k.  Promotion fairly recent (Just over a year ago) and was a Big salary bump.

i wanted to keep the savings just in case.  Being single I always worry I’m case anything goes wrong.

getmore4less

What are you paying for accommodation at the moment?

Redwino222

Current mortgage is around £600.