Price range to consider and affordability

User1927

What’s everyone’s thoughts when it comes to the question of whether or not to look at properties at the limit of what the bank is willing to give you a mortgage for, and what should he considered ‘affordable’

I’m looking to buy a house with my partner (couple approaching mid 30s) and we’ve found one recently we quite like, a wee bit further out from work than ideal but the actual area is lovely in terms of amenities and feel etc and it is easily more than the minimum sq ft size we’re looking for. It also seems fair bit cheaper compared to comparable properties for its size and spec in and around the area. We would require a top up mortgage around £50k or so under our maximum possible.

However after having budgeted what our monthly savings would look like after taking out the top up mortgage required, based on current expenses (both bills and discretionary) and likely future expenses (read kid) into account, we’d be saving ~£1.7k a month.

In the context of financially overextending ourselves, is that a sufficient amount to be saving each month bearing in mind most of our current cash savings will be going towards the deposit, but the house itself seems to be in good nick and shouldn’t require much immediate expenditure at least in the short term. Obviously any interest rate hikes would eat into this number, unexpected future costs etc.

Also we’d be living in London if that helps contextualise the £1.7k monthly savings.

thegreenone

An aside, if you are planning on having children, check what the local schools are like, nursery provision and costs.  I believe (happy to be corrected) that one child in full time nursery could be £700 per month.  I know the gov. are changing the rules on free places but you have to find a nursery with a place first.  Can you live on one salary?  If not, what's the gap?  Sorry, not exactly what you asked.