New house purchase, am I being an idiot??
Discussion
Looking at buying a new house with my new partner.
I earn about £40k
She earns about £12k
We will have a six and a twelve year old.
We have £126,000 in equity.
We are looking at buying a new house at £382,000 and securing a five year fixed mortgage at 1.58 meaning payments will be £917 per month for 29 years.
I am 40 she is 41 And whilst a bit gruesome both Of us have parents in 70s who have a fair bit in the bank (think just north of a million combined).
After all outgoings including food and petrol we will have about £1200 per month to spend on ourselves/ save and was thinking of £300 each and £600 savings per month.
These figures Do not include include bonuses or overtime which generally amount about £4500 per year.
Does this sound crazy or doable??
I earn about £40k
She earns about £12k
We will have a six and a twelve year old.
We have £126,000 in equity.
We are looking at buying a new house at £382,000 and securing a five year fixed mortgage at 1.58 meaning payments will be £917 per month for 29 years.
I am 40 she is 41 And whilst a bit gruesome both Of us have parents in 70s who have a fair bit in the bank (think just north of a million combined).
After all outgoings including food and petrol we will have about £1200 per month to spend on ourselves/ save and was thinking of £300 each and £600 savings per month.
These figures Do not include include bonuses or overtime which generally amount about £4500 per year.
Does this sound crazy or doable??
Sorry the bit about the parents isn’t to show i need them for the mortgage but to show I don’t need to go crazy with savings and as long as the savings keep going up at least a bit year on year we will be fine for retirement.
One sibling for each of us.
No worries about care homes as this is already taken care of.
I work in electrical infrastructure and have never been so busy or in demand.
I have raised the interest rate up to 5% and it still leaves some in the bank but would limit us for holidays somewhat, again this is without the overtime as I don’t think it wise to rely on this despite 17 years and no months without.
One sibling for each of us.
No worries about care homes as this is already taken care of.
I work in electrical infrastructure and have never been so busy or in demand.
I have raised the interest rate up to 5% and it still leaves some in the bank but would limit us for holidays somewhat, again this is without the overtime as I don’t think it wise to rely on this despite 17 years and no months without.
Seventyseven7 said:
How much is your current mortgage?
3k a month with a 1k mortgage and 2 children is going to be tough in my opinion but I’m sure you could make it work
Current mortgage is £614 just for me this would be our first house together. 3k a month with a 1k mortgage and 2 children is going to be tough in my opinion but I’m sure you could make it work
Total combined monthly income would be around £3600 take home after tax, ni and pensions.
Sheetmaself said:
Seventyseven7 said:
How much is your current mortgage?
3k a month with a 1k mortgage and 2 children is going to be tough in my opinion but I’m sure you could make it work
Current mortgage is £614 just for me this would be our first house together. 3k a month with a 1k mortgage and 2 children is going to be tough in my opinion but I’m sure you could make it work
Total combined monthly income would be around £3600 take home after tax, ni and pensions.
It’s doable it just depends what lifestyle you want.
I’d tell the wife to get a better job
Job is as secure as a job can be really.
Always busy hence the constant need for overtime (at least an hour a day).
Without parents we will be accruing savings even at 5% rates. But it is something that makes me feel more comfortable with things.
To be clear though I have told them I would prefer for them to spend their money but they have little want to and are set up to pass it onto me and my sibling as that is what they have worked hard for. Again their words and wishes not us asking for this.
Always busy hence the constant need for overtime (at least an hour a day).
Without parents we will be accruing savings even at 5% rates. But it is something that makes me feel more comfortable with things.
To be clear though I have told them I would prefer for them to spend their money but they have little want to and are set up to pass it onto me and my sibling as that is what they have worked hard for. Again their words and wishes not us asking for this.
Seventyseven7 said:
I wouldn’t do it personally, just due to the lack of money to enjoy life you’ll have. Having a bigger house comes with more costs, not just insurance and power etc, but having to furniture it, maintain it etc. One month you’ll need £500 for some garden furniture you didn’t have, or £300 on some boiler repair etc and you’ll realise you have no money to go out with the kids and wife that month.
It’s doable it just depends what lifestyle you want.
I’d tell the wife to get a better job
Will be a brand new house so fingers crossed not too many unseen expenses for a while and we have furniture to spare!It’s doable it just depends what lifestyle you want.
I’d tell the wife to get a better job
I have lived the lavish lifestyle while with my ex wife with houses in different countries, expensive trinkets and going out all the time. Me and my new partner now just want to curl up with the kids and watch a film or go for a walk.
Sarnie said:
Your income is unlikely to be enough............
Do you mean to get the mortgage?I have qualified for £255,000 if no overtime allowed for and £278,200 if it is allowed for.
Both of these figures allow me to purchase the property and I have about £8,000 in the bank at the moment.
If you mean to live from this is my concern.
She id used to living very simply, I am coming round to it but am with people on here, £6000 savings a year (minus a holiday should we want one, plus the potential of £4500 overtime) doesn’t sound a huge amount to me. But like I have said before I get that I have been very privileged before and that this is the first time I have had to think about money.
Partners job seems safe, she is a key worker and they have not had a downturn in work but she has only been there a year.
I currently have £57 per month going on a 0%interest loan on a bike which finishes in July 2021 and will be saving a further £50 per month through having no need for a phone from this November so that frees up another £100.
I will also be getting a payrise next april which will be approx £90 per month which has already been agreed with the unions.
I also have a sofa on 0% at £55 per month for four years (these have both been taken i to account by the mortgage broker while qualifying us).
I currently have £57 per month going on a 0%interest loan on a bike which finishes in July 2021 and will be saving a further £50 per month through having no need for a phone from this November so that frees up another £100.
I will also be getting a payrise next april which will be approx £90 per month which has already been agreed with the unions.
I also have a sofa on 0% at £55 per month for four years (these have both been taken i to account by the mortgage broker while qualifying us).
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