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How big a mortgage would you want...

Discussion in 'Personal' started by DottyLou, Aug 20, 2011.

  1. ... if you earned about £80,000 between you, around £300,000 in capital from existing properties and with childcare costs of around £500-£600 a month? (Non resident child)

    Buying in central-ish London by the way.

    Financial savvies - your advice most welcomed.
     
  2. ... if you earned about £80,000 between you, around £300,000 in capital from existing properties and with childcare costs of around £500-£600 a month? (Non resident child)

    Buying in central-ish London by the way.

    Financial savvies - your advice most welcomed.
     
  3. A pretty big one if I was going to afford anything remotely half decent in London!
     
  4. Zero, but then I wouldn't be in London! That would buy a good sized, detached, rural house out here!
     
  5. Last time I bought a property I was keen not to over extend ourselves financially and ended up in my current property. It is all right but that is about it. This time the mortgage is a lot more for a home we love, and hope to live in for a great many years.
     
  6. I'm nervous about rates going up, or one of us losing our job. Would prefer a home big enough to let out a room if needed, but that means at least £250,000 mortgage, which scares the proverbial out of me.
     
  7. £250,000 in London....not a very big house I'm assuming! Or it is a big house in a dump of an area. Will you be commuting? Bear in mind the extortionate costs of rail fare and the fact that they are due to go up a ridiculous amount yet again.
     
  8. 300K from other property PLUS 250 mortgage, PFF.
    Or that's how I read it!
    There's a 6 bed 300 Year old mansion house down the road that sold for very little more! And it has 2 cottages and acreage!
     
  9. I must have missed that bit! [​IMG]
     
  10. If you read the post, this is the mortgage. They have 300,000 already so 550,000 altogether!
     
  11. I know, it's a bit depressing isn't it. I have a gorgeous big house in the country, but bottom line is, he (partner of 3 years) has a great central London based job, and I've had one in London now for long enough to know it's working out (job and relationship).

    Next step is buying together and if it has to be in the smoke, then so be it.

    £550,000 gets us a small house with good transport links to both our workplaces. Much less and it's a 2 bedroomed flat.
     
  12. I'm with Pobble. Even £300K would get you a lovely house anywhere but London! In answer to your OP, you need to do this the other way around - work out your average spending over a month (on absolutely everything!) and see how much you have left over to pay a mortgage. Bear in mind that power bills, insurance etc may go up in a larger property. That should give you a starting point but you need to leave plenty of leeway in case interest rates go up - there are online calculators which show you payments for different rates. The good news is that with such a good Loan to Value rate you should be able to get a decent deal.
     
  13. We're a bit financially incontinent - I don't mean we have loans or credit card bills or anything, just that we don't budget as such, just spend what we have each month. I do save a bit but them it goes in chunks on holidays, car bills etc.

    Must try harder.
     
  14. Crowbob

    Crowbob Established commenter

    If you already have £300,000 of property, you don't need to try much harder!
     
  15. That what you need to work out. Go back through a couple of months bank statements and it should be relatively easy. You need to know how much of your income is genuinely disposable and could instead go towards a mortgage payment.
     
  16. joli2

    joli2 New commenter

    You might want to look a bit further out. You can still get good transport links into the centre.
     
  17. Just make sure you budget for travel costs a well. As other have said add up all the bills first and see what's left. My train ticket was £1200 a year and that was 7 years ago.
     
  18. Crowbob

    Crowbob Established commenter

    I second that. My annual season ticket will cost me £5000+ this year. Joy [​IMG]
     
  19. FIVE GRAND!
    But they just said they were raising fares by some stupid % (7-13%??).
    OMG! I think I shall remain rusticated!
     
  20. Yes, the joy of london transport. When I started work it was 70p to get the bus. Now it is £2.20 an set to rise.
     

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