Realistically, what are our options?

Herzlos

What are the kids plans for college etc? Is your 17 year old going to move away and need help whilst allowing you to downsize house a bit? If your youngest is 10, then potentially your housing requirements are going to be very different in 8-10 years anyway so it may make more sense to hold out until the kids have moved out and try to buy a 1 or 2 bedroom place to retire to rather than a 4 bed that becomes too big.

Most mortgage providers want a mortgage paid off by your retirement, so you're potentially looking at a 17 year mortgage now.

Can you buy a house somewhere cheaper? Can you get away with a 3 bed or a semi-detatched/terraced/flat?
Do you have any assets or expenses you can downsize to help raise a deposit? Cars, phone plans, etc?

jrawle

Bigphil1474 said:

£90k gross is about £5k net per month or less depending on pension payments. Maybe closer to £4.5k, which leaves £3k per month after rent. That's not a lot for a family of 6 - I get about £2.3k a month after tax (no mortgage) and we manage to save about £500 a month most months, but there's only 2 of us. 

Out of interest, what do you spend £1800 per month on if you don't have a mortgage?

Hoenir

A thorough audit of your expenditure maybe pretty revealing. Set yourself goals. Surprising how takeaways and other non essentials mount up. Likewise that must have holiday that soon gets forgotten. 

Bigphil1474

jrawle said:

Bigphil1474 said:

£90k gross is about £5k net per month or less depending on pension payments. Maybe closer to £4.5k, which leaves £3k per month after rent. That's not a lot for a family of 6 - I get about £2.3k a month after tax (no mortgage) and we manage to save about £500 a month most months, but there's only 2 of us. 

Out of interest, what do you spend £1800 per month on if you don't have a mortgage?

Funnily enough we were just looking at that this morning as we are budgeting for the new house. I'm happy to share.

We spend about £400 a month on food including eating out once or twice a month.
Household bills/Utility etc. - £750
Car Related - £500 (includes £100 into my emergency car fund each month)
TV/Mobile provider and other Tv subscriptions - £150 
Big spend savings - £500 a month.
Total - £2,300

We aren't on a budget really, just living comfy enough. It's a fluid budget as well. 

RHemmings

grumbler said:

To spend less, to earn more and to budget is the only option.

£90K/12=£7.5K

Every month you have £6K left after the rent is paid. Where does all this money go to?

I interpreted the OP as being £90K pre-tax. If that's post-tax, that's one heck of a lot of money. 

annetheman

Bigphil1474 said:

jrawle said:

Bigphil1474 said:

£90k gross is about £5k net per month or less depending on pension payments. Maybe closer to £4.5k, which leaves £3k per month after rent. That's not a lot for a family of 6 - I get about £2.3k a month after tax (no mortgage) and we manage to save about £500 a month most months, but there's only 2 of us. 

Out of interest, what do you spend £1800 per month on if you don't have a mortgage?

Funnily enough we were just looking at that this morning as we are budgeting for the new house. I'm happy to share.

We spend about £400 a month on food including eating out once or twice a month.
Household bills/Utility etc. - £750
Car Related - £500 (includes £100 into my emergency car fund each month)
TV/Mobile provider and other Tv subscriptions - £150 
Big spend savings - £500 a month.
Total - £2,300

We aren't on a budget really, just living comfy enough. It's a fluid budget as well. 

You say you're living comfortably - this means that with you struggling with your business, if you gave that up, since it's not helping your household income much and is likely more of a hobby, and found full time paid employment, even on minimum wage -- you could save everything you earn (since you're living comfortably on husband's salary) and probably have enough for a deposit in 2 years, easily.

I would seriously consider this - that may be the key in your circumstances.

People have already suggested it but strongly recommend again putting together a statement of affairs properly - I struggled with the Lemonfool tool but used it as a starting point, then created my own spreadsheet which I still use daily (link to it is in my Debt Free Diary post!).

I have a similar household income (not too far off your household income, £86k basic + £14-24k bonus). Reality is that the level of income is healthy, even in SE England - fair enough I don't have 4 kids to upkeep but there absolutely will be some amount of money you can save every month, and it is likely to be more than you think. From the very rough amounts you shared, perhaps anywhere between £500-1,000, but you will be able to work out how when you do a proper, thorough statement of affairs based on 3-6 months worth of spending statements.

Add that to a minimum wage income from your end and you will definitely be able to buy within 2 years with some clear, structured planning.

mexican_dave

@lika_86 you say "buy outright", as you haven't really explained how. I ask are you expecting the OP to have obtained a mortgage once the kids are no longer an expense (dream on!) and then at retirement use pension lump-sums to pay-off the mortgage? You haven't outlined the steps to be in a position not to be renting. I am sure the OP would like it explained too.

Albermarle

Bigphil1474 said:

jrawle said:

Bigphil1474 said:

£90k gross is about £5k net per month or less depending on pension payments. Maybe closer to £4.5k, which leaves £3k per month after rent. That's not a lot for a family of 6 - I get about £2.3k a month after tax (no mortgage) and we manage to save about £500 a month most months, but there's only 2 of us. 

Out of interest, what do you spend £1800 per month on if you don't have a mortgage?

Funnily enough we were just looking at that this morning as we are budgeting for the new house. I'm happy to share.

We spend about £400 a month on food including eating out once or twice a month.
Household bills/Utility etc. - £750
Car Related - £500 (includes £100 into my emergency car fund each month)
TV/Mobile provider and other Tv subscriptions - £150 
Big spend savings - £500 a month.
Total - £2,300

We aren't on a budget really, just living comfy enough. It's a fluid budget as well. 

The figure in bold seems high, especially as it does not include £150 for mobile/TV ( which is also high )  ?

TheMilkmansDad

people are replying to @Bigphil1474 - they are not the OP as far as I can tell and are not having any issues. it's the OP we need to hear from......

lika_86

mexican_dave said:

@lika_86 you say "buy outright", as you haven't really explained how. I ask are you expecting the OP to have obtained a mortgage once the kids are no longer an expense (dream on!) and then at retirement use pension lump-sums to pay-off the mortgage? You haven't outlined the steps to be in a position not to be renting. I am sure the OP would like it explained too.

OP gets a job, if it brings in £1k a month then over the course of 20 years that's a good extra lump sum, combined with some savings over that period and downsizing to a one or two bedroom house and they could definitely buy in certain parts of the country if not where they are now.