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How much would you budget?
hippocrates1
Posts: 354 Forumite
After months of waiting for the mortgage market to pick up for first time buyers with small deposits I have finally got a DIP for 90ltv product. I earn £53.5k. My maximum mortgage borrowing is £255k. I am a junior doctor so my income will go up regular over the next ten years.
What do you think is a good ballpark house price to shoot for? My take home after deductions is £3000ish. How much would you want to commit to a mortgage? Would you stretch yourself now if you know your earnings will increase so you don’t move as soon or get a comfortably sized mortgage? I was thinking of aiming for a purchase price of £210 000. So borrowing £189 000. Mortgage mpayments would be 800-950/ monty depending on the length of the mortgage. Is that about right or too low/ high of a goal?
DIP 09/02/21
Offer on property 17/02/21
Offer accepted 18/02/21
Mortgage application submitted 22/02/21
Desktop valuation 22/02/21
Mortgage offer received 22/02/21
Solicitor instructed 23/02/21
Draft contract received and enquiries sent 02/03/21
searches back 08/03/21
Enquiries back 10/06/21
Exchanged 23/06/21
Offer on property 17/02/21
Offer accepted 18/02/21
Mortgage application submitted 22/02/21
Desktop valuation 22/02/21
Mortgage offer received 22/02/21
Solicitor instructed 23/02/21
Draft contract received and enquiries sent 02/03/21
searches back 08/03/21
Enquiries back 10/06/21
Exchanged 23/06/21
0
Comments
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Where do you live?30th June 2021 completely debt free…. Downsized, reduced working hours and living the dream.0
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We budget for 25% of our take home pay being our mortgage payment.
This gives us enough left over to live very comfortably.
Over time as we both get pay increases the percentage our mortgage payment is to our take home pay becomes lower.0 -
Also, you're in a relatively stable job finance-wise, so I would always go for the best I could now as it 'may' prevent you from having to move again in the not so distant future
30th June 2021 completely debt free…. Downsized, reduced working hours and living the dream.1 -
The cost of buying and selling is high, so try to get as far up the housing ladder as you can in order to reduce the number of moves you'll need to make over your lifetime.
You budget should be max borrowing plus what you have saved up.0 -
Nottinghamdavilown said:Where do you live?DIP 09/02/21
Offer on property 17/02/21
Offer accepted 18/02/21
Mortgage application submitted 22/02/21
Desktop valuation 22/02/21
Mortgage offer received 22/02/21
Solicitor instructed 23/02/21
Draft contract received and enquiries sent 02/03/21
searches back 08/03/21
Enquiries back 10/06/21
Exchanged 23/06/210 -
It will depend on your outgoings what you budget for mortgage payments, you might be better to think of it in % terms. My mortgage is 1/3 of my take home and my other outgoings about another 1/3 which includes savings, that leaves 1/3 for holidays, non essentials etc0
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My basic mortgage payment is just over ¹/3 of my take home pay. The mortgage amount I borrowed was about 3.2x my annual salary as I personally didn't want to be 'mortgaged to the hilt' and wanted to clear it in a decade.
It really is down to how comfortable you are spending X on your mortgage each month and Y on a property, before interest is added on. Provided it's within lenders affordability and other criteria.Mortgage started 2020, aiming to clear 31/12/2029.0 -
We have steady well paid jobs and set our budget at the max (equity / deposit + max lending). Slightly less risk as there is two of us. The last house we bought happened to be a fair amount under our budget (c£75k) just because we liked it. Our mortgage is around 30% of our take home pay and we are very comfortable.0
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