Feel a bit on edge about taking on the mortgage

Getting_greyer

I think you're OK then bud tbh.  Basically you're worried that you might end up where you can't pay your mortgage because your current income might be eroded away by inflation.

However, if that happened you could easily give your self a "pay rise" by not eating out and massively cutting grocery bills. 

hangryconsumer

Worse case scenario you sell the house and use the equity to sort out alternative living arrangements. Sounds like you're worrying for nothing. Less than 30% on mortgage is good. Some people pay 50% on rent. Which I'm sure if you're renting at the moment you may be aware of.

Mimi123456

So sounds like you have some wiggle room. You have been at your firm for a while (I assume that means >2yrs) so not like they can let you go very quickly without some compensation. You have a fixed rate for now. 

Any chance of a promotion at work in the next couple of years? So that you could cushion some more money for higher rates in the future?

And looks like you have some non-essential spending you can cut in case you really have to.

finally, how much are you putting in deposit? If it’s comfortable enough (>10%) then in a worst case scenario you can sell and repay all debt. 

Being somewhat worried is normal. Mortgage is a big responsibility. And it’s good that you are thinking it through carefully. 👍🏻

F37A

Getting_greyer said:

I think you're OK then bud tbh.  Basically you're worried that you might end up where you can't pay your mortgage because your current income might be eroded away by inflation.

However, if that happened you could easily give your self a "pay rise" by not eating out and massively cutting grocery bills. 

Thanks - Yeah exactly the inflation might wipe out monthly income in which case no savings and almost like being chained up with no room to move.

F37A

Mimi123456 said:

So sounds like you have some wiggle room. You have been at your firm for a while (I assume that means >2yrs) so not like they can let you go very quickly without some compensation. You have a fixed rate for now. 

Any chance of a promotion at work in the next couple of years? So that you could cushion some more money for higher rates in the future?

And looks like you have some non-essential spending you can cut in case you really have to.

finally, how much are you putting in deposit? If it’s comfortable enough (>10%) then in a worst case scenario you can sell and repay all debt. 

Being somewhat worried is normal. Mortgage is a big responsibility. And it’s good that you are thinking it through carefully. 👍🏻

I'm ready for a promotion at the moment expecting a 8k-15k pay rise should this happen but will look at this after one year.
I'm putting 63k deposit. 
Yeah well over 2 years

Ramouth

You would be surprised at how much you can shave off your spending if you need to.  Check out the debt free wannabe board for inspiration.  I’m not saying you need to do this now but it might help you feel better to see what can be done.

TBagpuss

It sounds as though you have some scope to make savings if you need to - and if you are going forward with a 2 years fixed rate mortgage then you will have time to plan for any interest rate rises. 

One option is to keep an eye on the SVR and to start paying the difference between your fixed rate and the SVR into a savings account each month - that way, you build up a cushion of savings but also get used to budgeting for the extra cost, rather than having a single big increase when your fix comes to an end.

Depending on the terms of your mortgage you may be able to pay the extra to the mortgage (many fixed rates allow you to over pay up to a certain amount each month without penalty) but putting it into a separate account gives you a bit more flexibility. 

If you have been employed for 2 years or longer then your employer would only be able t o end your employment if they made you redundant or if you were sacked for misconduct or incapacity. If you were made redundant you would be entitled to your normal notice period plus a redundancy payment. Employers can't unilaterally reduce your pay, that would be a renegotiation of your contract so you would have to agree to it. Right now, unemployment is falling and wages are rising, so while of course no one can say for sure what will happen, it's probably fairly unlikely that your employer will be  looking to lay people off or to reduce wages right now. 

That said, it's always sensible to have some savings so it may well be sensible for you to try to cut your discretionary spending a bit and builf up savings equal to around 3-6 months income, so you feel less stressed. 

boxer234

I’m also freaking out and my budget is tight.  Also a single buyer.  I’m fixing for 5 years it’s a forever home. Very nervous but I’m renting so still would have to pay that if I lost my job.