How much can i afford for new home?

Zerforax

Most mortgage lenders will lend you 4-4.5x your salary (so borrowing up to the 380k you referenced).

Is it because it sounds like a large amount that puts you off? Also at 35, you can take out a longer term mortgage e.g. 30 or 35 years which would also reduce your monthly amount (and then could make overpayments if you have extra money from your bonus or otherwise).

nick1234

Zerforax said:

Most mortgage lenders will lend you 4-4.5x your salary (so borrowing up to the 380k you referenced).

Is it because it sounds like a large amount that puts you off? Also at 35, you can take out a longer term mortgage e.g. 30 or 35 years which would also reduce your monthly amount (and then could make overpayments if you have extra money from your bonus or otherwise).

thanks, yes it is the large debt and risk of buying solo.  Currently i have about 215k outstanding so 380k does feels like a big step up.  Good point about increasing the term i would likely do that

nick1234

TripleH said:

Do you overpay your mortgage?

It makes sense to overpay a little as it reduces the interest you pay. There are usually limits to what you can overpay in a year so it doesn't need to eat all your surplus income.

No as my investments easily earn 5-10% so i have always thought id rather have it as a safety net than tied up in the property