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  • FIRST POST
    • Accountant_Kerry
    • By Accountant_Kerry 10th Feb 19, 5:06 PM
    • 337Posts
    • 458Thanks
    Accountant_Kerry
    How much would you borrow?
    • #1
    • 10th Feb 19, 5:06 PM
    How much would you borrow? 10th Feb 19 at 5:06 PM
    Hi all,
    I am looking at moving in the medium term.

    My question is really regardless of what the bank will lend you mortgage wise how much does everyone feel is a comfortable amount to have as a mortgage either in income multiples or in respect of mortgage payments as a percentage of income?

    I am a bit nervous using some of the mortgage calculators on how much is the max mortgage companies may lend me, just because they 'will' doesn't mean you 'should', right?
Page 2
    • charlie792
    • By charlie792 13th Feb 19, 6:56 PM
    • 1,668 Posts
    • 5,325 Thanks
    charlie792
    personally when we remortgaged we borrowed 1.5 times our joint income on the basis that we wanted to be able to afford the mortgage and all bills with a bit left over, manageable on one salary if push came to shove.

    At the appointment with the bank we discussed reducing our term and thus upping our monthly payments - I said we wanted to pay 360 max, they said we could afford 2000
    MFW 2019 #111 0/ 8100
    0ffset Balance 18,948 / 82,140

    Aug 2014 114,750 -35 yrs (2049)
    Sept 2016 104,800
    Nov 2018 82,500 -24 yrs (2042)

    Aim Mortgage Free by June 2023
    • robatwork
    • By robatwork 13th Feb 19, 8:09 PM
    • 4,861 Posts
    • 5,549 Thanks
    robatwork
    Getmore's approach is right - is a nice holiday/car/frock more important to you?

    Slightly concerned that an accountant doesn't want to budget - or face up to what she's really spending perhaps - but the general rule of thumb has always been a third of household income can be allotted to the mortgage.
    • getmore4less
    • By getmore4less 13th Feb 19, 8:33 PM
    • 34,743 Posts
    • 21,181 Thanks
    getmore4less
    Getmore's approach is right - is a nice holiday/car/frock more important to you?

    Slightly concerned that an accountant doesn't want to budget - or face up to what she's really spending perhaps - but the general rule of thumb has always been a third of household income can be allotted to the mortgage.
    Originally posted by robatwork
    1/3 is good when you split it into 1/3rds

    Save
    House
    Spend

    Retire early mortgage free.

    It is easy to make 1/3 stretch just extend the term.

    The rule of thumb was 25 years that got thrown out.
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