What target to set?

Hi, I haven't bought a house just yet, but we're looking for one that will need a roughly £170k mortgage. We earn £60k combined (before tax), and will be living in a 2 bed house, probably a terrace in the SE...

I know that's not much to go on, but what sort of target do you think would be challenging but achievable? We're looking at getting a 15yr term, and trying to overpay on that by as much as possible each month.

It's so daunting that I can't think of how to set about it to be honest.

Any advice on target setting and so on gratefully received.

Trying to be good, not always succeeding. :A:beer:


  • I'd suggest that you start with a monthly budget calculator. Work out your income and outgoings and see what's left over. Factor in savings, car(s), pensions, everything, and you'll see just what you spend your money on and what you'll have available to overpay.

    That will give you a 'best case' senario of what you could overpay. Then set yourself a target considering things that crop up over time such as car repairs, holidays, christmas, etc.
  • JonbvnJonbvn Forumite
    5.6K Posts
    Part of the Furniture 1,000 Posts
    Best to ensure that you have a rainy-day emergency fund.

    The term of your mortgage really depends on your cirmcumstances. I would give an example as follows:

    1. You are self-employed with a high but irregular income.
    2. In this case a longer term mortgage tracker mtg would be better, since you need to keep the minimum payments lower, (for lean work periods) but need the ability to overpay (during good periods).

    Given your intention to overpay, I would try and avoid any mtg's with ERC's.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • thanks both. :)

    wasn't factoring in much in the way of savings, but i guess it's a good plan.
    Trying to be good, not always succeeding. :A:beer:
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