Just had an offer accepted on a house - our deposit is smaller than we thought. Panicking.

bigolsausage

We've just had our offer accepted on a house for £325k. We have a joint income of £68.5k. I thought we had a £50k deposit, 50% from me and 50% from my partner. 

I forgot that my partner spent £5k on paying off overdraft and buying a car (which we agreed he could), and the other £5k has just gone missing i.e. he's spent it without realising. He still has £11k for the deposit.

I'm incredibly mad at him, but I can also see he's disappointed in himself. He thought he'd put the money to the side with the other half and had money to spend but he didn't. He's annoyed and very remorseful. 

But this means we now have a deposit that's £10k less than we originally thought and now I'm not sure if we'll get a mortgage and if we can afford the house. 

I've run the numbers with a rough estimate of £1500 for mortgage and insurances, and we come out with £2000 after bills and food. But I'm just not sure if I'm missing anything or if I'm calculating it wrong. 

Just very worried that we now might not get the house. 

Would this be affordable on our income? What is a comfortable amount to spend on a mortgage for an income like this? 

We don't really have any debts, or spend a lot on fancy things. Our money disappears mainly on food/coffees/takeaways which we know we need to cut down - but aside from that, we're homebodies with cheap hobbies lol. 

grumbler

bigolsausage said:

...We have a joint income of £68.5k. ...

Would this be affordable on our income? What is a comfortable amount to spend on a mortgage for an income like this? ...

This question makes no sense with so little information given. Only you yourself can answer it - after careful calculations, that can be not easy when your partner can "spend ...without realising" £5K from just £20K savings he had.

Your current LTV was 85% - very high. With £40K deposit you are moving to extreme 90% area that will make your mortgage even more expensive (in terms of both interest rate and monthly payments) and less  afordable.

bigolsausage

grumbler said:

bigolsausage said:

...We have a joint income of £68.5k. ...

Would this be affordable on our income? What is a comfortable amount to spend on a mortgage for an income like this? ...

This question makes no sense with so little information given. Only you yourself can answer it - after careful calculations, that can be not easy when your partner can "spend ...without realising" £5K from just £20K savings he had.

You current LTV was 85% - very high. With £40K deposit you are moving to extreme 90% area that will make your mortgage even more expensive (in terms of both interest rate and monthly payments) and less  afordable.

I thought a 10% deposit was normal? Don't think "extreme" is the right word to use? 

Flugelhorn

I don't know about affordability but would worry about "spending without realising"  - has he got other debts ? gambling? etc - surely coffee doesn't cost that much   

One thing to remember is all the extra costs of buying a house - not just fees etc etc but endless trips to DIY store, paying assorted tradesmen etc etc - will all add up so useful to factor in a contingency fund 

BoGoF

Did you have an AIP/DIP before you offered?

grumbler

bigolsausage said:

grumbler said:

bigolsausage said:

...We have a joint income of £68.5k. ...

Would this be affordable on our income? What is a comfortable amount to spend on a mortgage for an income like this? ...

This question makes no sense with so little information given. Only you yourself can answer it - after careful calculations, that can be not easy when your partner can "spend ...without realising" £5K from just £20K savings he had.

You current LTV was 85% - very high. With £40K deposit you are moving to extreme 90% area that will make your mortgage even more expensive (in terms of both interest rate and monthly payments) and less  afordable.

I thought a 10% deposit was normal? Don't think "extreme" is the right word to use? 

I'm no expert, but I think 10% deposit is the lowest acceptable nowadays. If so, then IMO it's extreme by definition.

"EXTREMUM is a maximum or a minimum of a mathematical function"

housebuyer143

You are really reaching your max affordability and if you only have a 10% deposit you are going to find your pool of lenders reduced quite a lot. 
Have you done an AIP to see if you can borrow the amount you need?

bigolsausage

Flugelhorn said:

I don't know about affordability but would worry about "spending without realising"  - has he got other debts ? gambling? etc - surely coffee doesn't cost that much   

One thing to remember is all the extra costs of buying a house - not just fees etc etc but endless trips to DIY store, paying assorted tradesmen etc etc - will all add up so useful to factor in a contingency fund 

It was all in the last year, he bought me a holiday for my birthday, he bought a gaming PC, he knows he shouldn't have and I didn't know any of it came from the house deposit money. He's been saving for a new car/holiday so does a little extra but we do want to keep some back for emergencies. 

I want to keep £10k back for land tax, legal fees and emergency fund. 

We already have furniture and the house is newish so doesn't need too much. We also have relatives who can help with any house fixing needed.

He has no other debts, no gambling, he used to spend a lot on weed but doesn't smoke anymore. He has greatly improved since we first met and he feels REALLY awful about it. We've agreed to be stingy and tight going forward to build back up our savings and to be less frivolous with spending. We regularly finish the month with about £1000-1500 leftover at the moment. 

bigolsausage

BoGoF said:

Did you have an AIP/DIP before you offered?

Yes we have an AIP for £316,000 on the basis we had £50k deposit. 

FlyMeSomewhere79

Only you can answer whether you can truly afford the repayments. My partner and I are on a similar joint income to yourselves and we are buying a 240k house currently with about 110k of equity to pay straight off it from our sale and thats as much as we are comfortable with especially as we want to pay it off over ten years. 

The question is should you be looking at a cheaper home because you don't want to tie up nearly all your income just on mortgage payments and find yourself having no life and your home repossessed especially if your partner keeps losing thousands of pounds! You don't want to be on an extremely tight budget with someone that's not great with money. 

bigolsausage

housebuyer143 said:

You are really reaching your max affordability and if you only have a 10% deposit you are going to find your pool of lenders reduced quite a lot. 
Have you done an AIP to see if you can borrow the amount you need?

Yes putting them in with the new figures, we can borrow £284,000 with £41,000 deposit at 4.5% - £1355 per month repayment for 35 years.