Feel a bit on edge about taking on the mortgage

F37A

Hi 

So bascially I'm going through a purchase and realised I will only have £200 net saving from my wages per month and then about 7k left over for repairs and if I lose my job shortly after the property purchase. I'm little worried about impending further increases to inflation from the war on the top of the worst inflation we've had in decades. 

Am I being overly cautious here? 

I suppose employer can reduce wages can they do that to your base salary just for any made up reason. I know employers have huge powers over employees.

Thanks

Mimi123456

Are you on a fixed rate? For what term?

£200 is not a big cushion and inflation could wipe out a large share of it.
any expenditures you could possibly reduce in case you need more financial room?

on the wage adjustment - really depends what you do, what industry. 

MaryNB

F37A said:

Hi 

So bascially I'm going through a purchase and realised I will only have £200 net saving from my wages per month and then about 7k left over for repairs and if I lose my job shortly after the property purchase. I'm little worried about impending further increases to inflation from the war on the top of the worst inflation we've had in decades. 

Am I being overly cautious here? 

I suppose employer can reduce wages can they do that to your base salary just for any made up reason. I know employers have huge powers over employees.

Thanks

I agree with above. I wouldn't be comfortable with just £200 in savings a month.

How much are your mortgage repayments as a % of your take home pay? About 30 to 40% is advisable (although with obviously depend massively on your other financial commitments).

Getting_greyer

Maybe join a union? 

Is that £200 after essentials or £200 after discretionary spends.  Makes a difference as if the !!!!!! hits the fan you could actually cut some non essential stuff would just be a bit miserable for a while.

Would you be significantly better off in with your current accommodation costs?

Snookie12cat

I think it is only natural. We are due to complete this month and we are going from mortgage free £1,600 free money a month to an £800 mortgage. While I know we have ample free money left, it does not make me any less anxious about parting with all my savings and then having £800 a month leeway.

I think sometimes in life you need to risk it and if your job is secure then chances of things going wrong are slim.

canaldumidi

If £200 pm month is truly 'savings', and not going to be dipped into for birthdays, pub meals, or other expenses, well, OK it's not much but it will gradually build up. £2,400 after a year.

And you can insure against job-loss (though not general inflation...).

Other factors are obviously your type of employment, industry /job security, and salary terms.

Is your mortgage fixed rate? For how long?

Is increasing your income an option eg taking in a lodger, or having your partner move in (though rushing the progress of a relationship for financial reasons can be an over-hasty decision,.....)!

You are wise to be cautious, but only you know your exact circumstances, how important the purchase is to you, what level of risk (gamble) you are prepared to take to achieve home-ownership etc

If you go ahead, and then live in a state of permenant anxiety, is it worth it?

Or if you go ahead, and then live in a state of permenant euphoria about you new home, is it worth it?

F37A

Mimi123456 said:

Are you on a fixed rate? For what term?

£200 is not a big cushion and inflation could wipe out a large share of it.
any expenditures you could possibly reduce in case you need more financial room?

on the wage adjustment - really depends what you do, what industry. 

I'm on fixed for 2 years. 

Eating out is the big one and groceries I'm doing Ocado which needs to change

Finance industry

F37A

MaryNB said:

F37A said:

Hi 

So bascially I'm going through a purchase and realised I will only have £200 net saving from my wages per month and then about 7k left over for repairs and if I lose my job shortly after the property purchase. I'm little worried about impending further increases to inflation from the war on the top of the worst inflation we've had in decades. 

Am I being overly cautious here? 

I suppose employer can reduce wages can they do that to your base salary just for any made up reason. I know employers have huge powers over employees.

Thanks

I agree with above. I wouldn't be comfortable with just £200 in savings a month.

How much are your mortgage repayments as a % of your take home pay? About 30 to 40% is advisable (although with obviously depend massively on your other financial commitments).

So my mortgage payment per month is about 27% of total take home per month. Then have train cost which is 22%. Then a significant chunk on food and bills.

F37A

Getting_greyer said:

Maybe join a union? 

Is that £200 after essentials or £200 after discretionary spends.  Makes a difference as if the !!!!!! hits the fan you could actually cut some non essential stuff would just be a bit miserable for a while.

Would you be significantly better off in with your current accommodation costs?

So that's including discretionary spends. I could get it £400 saving per month but I would not be able to eat out. Doable but the odd deliveroo is always nice after stressful week in the office and too tired to cook.

The good thing is that there's an Aldi near to the home so I could really reduce the groceries.

F37A

Snookie12cat said:

I think it is only natural. We are due to complete this month and we are going from mortgage free £1,600 free money a month to an £800 mortgage. While I know we have ample free money left, it does not make me any less anxious about parting with all my savings and then having £800 a month leeway.

I think sometimes in life you need to risk it and if your job is secure then chances of things going wrong are slim.

If Sh** hit the fan then about 10k would have spare worst case plus rental income would be bonus. Job is secure for now.

F37A

canaldumidi said:

If £200 pm month is truly 'savings', and not going to be dipped into for birthdays, pub meals, or other expenses, well, OK it's not much but it will gradually build up. £2,400 after a year.

And you can insure against job-loss (though not general inflation...).

Other factors are obviously your type of employment, industry /job security, and salary terms.

Is your mortgage fixed rate? For how long?

Is increasing your income an option eg taking in a lodger, or having your partner move in (though rushing the progress of a relationship for financial reasons can be an over-hasty decision,.....)!

You are wise to be cautious, but only you know your exact circumstances, how important the purchase is to you, what level of risk (gamble) you are prepared to take to achieve home-ownership etc

If you go ahead, and then live in a state of permenant anxiety, is it worth it?

Or if you go ahead, and then live in a state of permenant euphoria about you new home, is it worth it?

Type of employment is finance in london been at firm for a while so secure. 
Mortgage fixed rate for 2 years. 
Yeah potential for the lodger
No partner for the moment although will work on that post mortgage start date.
I believe if you don't take risk then cannot grow but equally I feel like I'll be so short on cash that may prevent me spending money on dating and education which are critical for my needs.
Well this is the thing when you feel like any more stress in finances then I'll get that sinking underwater feeling
It frustrating as there aspects of the home I don't need but paying a premium for but there's not much suitable cheaper out there at the moment.