Mortgage Payments - WHat Do Feel Comfortable Paying

**AtW** · 12 July 2012, 14:14

It's not absolute amount that determines affordability you dumbo, but %-tage of money to be spend on mortgage after all other essentials taken care of: tax, food, drinks, wife's shopping at Harrods etc.

**northernladuk** · 12 July 2012, 14:24

Surely it is up to you what happens when you are not in contract. You obviously have put some time and effort in to planning your outgoings, calculated your warchest and how to manage in that eventuality so wouldn't be hard to factor in the 3K on top. You have done this haven't you? No?..

Why are you buying a 550K plus house when can't make some pretty basic financial decisions?

I would also argue that 525 is not a huge amount unless you have a sizeable wedge behind you. Just to withdraw your morgage from divis is going to put you over the tax threshold so every penny after that is costing you a lot more so it isn't just the 3k you have to take in to account. You suddenly incurr a sizeable tax bill as well.

Can you continue to pay your mortgage, your living expenses AND keep the warchest stocked up after hard times. Only you will know that.

All said and done knowing your posting history this is all probably a load of fanciful bulltulip anyway.....

**mrdonuts** · 12 July 2012, 14:34

you can always go bankrupt if it doesnt work out, wheres the risk ?

**KentPhilip** · 12 July 2012, 14:34

What is the likelyhood that:
1. house prices reduce by 25%
2. You lose your contract and are unable to pay your mortgage.

In that situation, you'll lose the house and all of that circa £180K deposit money. Is that a risk worth taking, when you could rent somewhere and invest your deposit money in something that has a reasonable chance of going up in price.

**SimonMac** · 12 July 2012, 14:38

*Makes mental note to dump Llodys Banking Group shares*

**Doggy Styles** · 12 July 2012, 14:43

21 years ago I had a newish house and was paying a peak of £1300 a month, interest only, in the days when I was only on £200 a day.

Then in that year I was benched a couple of times for a total of three or four months. I didn't like that. It did my warchest in, such as it was.

I concluded that it seems silly to donate such a high proportion of my earnings, plus my savings, to a bank.

**northernladuk** · 12 July 2012, 14:46

What are the mortgage repayments in 5 or 6 years when it could go up to 5 or 6% just out of interest?

**Scrag Meister** · 12 July 2012, 14:49

IMHO that seems quite steep.

The wife and I both work and the total outgoings including all bills is around the 2.5k mark.

But then I did manage to persuade the nice man at the Abbey to give me their term loyalty rate of .49% above base, which at the moment is great and prob still not so bad if rates start rising.

Only you can really know what you consider affordable.

**Torran** · 12 July 2012, 14:58

Originally posted by Scrag Meister View Post

IMHO that seems quite steep.

The wife and I both work and the total outgoings including all bills is around the 2.5k mark.

But then I did manage to persuade the nice man at the Abbey to give me their term loyalty rate of .49% above base, which at the moment is great and prob still not so bad if rates start rising.

Only you can really know what you consider affordable.

Much the same here. I'm on a similar rate as the OP but my full monthly outgoings are less than £3k and that includes the wife's pocket money.
A £3k mortgage on £525 pd is bonkers. As the Scrag pointed out what happens when the rates rise, fuel increases, you're benched for an extended period?

Unless of course you intend on doing a bunk back to Oz if the tulip hits the fan like a few I have seen in the past

Mortgage Payments - WHat Do Feel Comfortable Paying