Mumsnet Debt Junkies

[hurlerontheditch]

Quote

We have seen the house of our dreams but can only afford if we up our mortgage to 2k per month. Seems like a massive hike & makes me feel so nervous. Husband feels we can do it as houses like this hard to find. At the minute we have no major money worries- can eat out, have nice holidays etc. Hate the thought of struggling when we have a nice lifestyle now. House is gorgeous though & actually good price for the location, space etc

Think what I mean is has anyone doubled their mortgage then totally regretted it?

 have £5.5k coming in per month. Childcare will be reduced to £400 per month soon.
No major debts but no major savings either!

My husband is a much higher earner than me as I work parttime. 4 children. I worry if he lost his job/illness etc. Even if this happened & I returned full time could only just cover mortgage but nothing else. Feels risky but we have missed out so many times by playing it safe

https://www.mumsnet.com/Talk/property/2702379-mortgage-2k-per-month

 

the poor husband will be working till he dies just to allow his wife not to "miss out " on a house that will more than likely drop in value. With the mortgage repayments increasing by 100% i would imagine a 5-10% property price downturn this would be a sizeable amount of equity in excess of 100k

 

[Freki]

Debt junkie talking to debt junkie wannabee:

 

Quote

When we first bought this house the mortgage was about 2 k a month and as interest rates rose as we went into recession years ago within a year we were at 3k a month which made things really tight

Now with rates being so low for so long we are at £800 a month, still interest only but have just fixed the rate for 10 years with an offer nationwide has for existing customers 

We were close to our limit when we took it out and it was a scary place to be but now things are so much stricter if you can afford it under today's regulations then I think I would go for it

 

[hurlerontheditch]

crazy!! 

 

it must be 11-12 years since rates rose and they are still on interest only! will never own it and are probably better off renting

 

[crouch]

1 minute ago, hurlerontheditch said:

crazy!! 

 

it must be 11-12 years since rates rose and they are still on interest only! will never own it and are probably better off renting

 

It's not rates; it's just the ordinary contingencies of life: job loss; illness or something else. People are much less secure than forty years ago and yet take on much more debt. Madness!

[Errol]

2k per month mortgage. Jesus ...

No major savings ...

Edited March 5, 2019 by Errol

[hurlerontheditch]

3 minutes ago, crouch said:

It's not rates; it's just the ordinary contingencies of life: job loss; illness or something else. People are much less secure than forty years ago and yet take on much more debt. Madness!

i know

 

what i was getting at she said she struggled when interest rates went up! so 12 years later they are still renting the place via interest only

 

i was nearly convinced to buy a place with an ex for over 1 million. mortgage was something like 2500 i think but i came to my senses and pulled out of the purchase and the relationship ?

[spyguy]

33 minutes ago, hurlerontheditch said:

https://www.mumsnet.com/Talk/property/2702379-mortgage-2k-per-month

 

the poor husband will be working till he dies just to allow his wife not to "miss out " on a house that will more than likely drop in value. With the mortgage repayments increasing by 100% i would imagine a 5-10% property price downturn this would be a sizeable amount of equity in excess of 100k

 

Wont get by MMR.

Basically, your mortgage outgoing needs to ~30% of income fter all regular expenses.

have £5.5k coming in per month. Childcare will be reduced to £400 per month soon.
No major debts but no major savings either!

Childcare is already swallowing up more than 400/m - lets say another kid, so that would be ~800/m.

5.5k = 800 = 4.7k/m

Then thers ctx, bills, cars, travel etc etc. I doubt someone even considering 2k/m mortgage lives a frugal lifestyle, so Id knock another 2k/m month of on 'stuff'

Computer says no.

 

 

 

[spyguy]

7 minutes ago, Errol said:

2k per month mortgage. Jesus ...

No major savings ...

5.5k a month income and no major savings!

[hurlerontheditch]

Just now, spyguy said:

Wont get by MMR.

Basically, your mortgage outgoing needs to ~30% of income fter all regular expenses.

have £5.5k coming in per month. Childcare will be reduced to £400 per month soon.
No major debts but no major savings either!

Childcare is already swallowing up more than 400/m - lets say another kid, so that would be ~800/m.

5.5k = 800 = 4.7k/m

Then thers ctx, bills, cars, travel etc etc. I doubt someone even considering 2k/m mortgage lives a frugal lifestyle, so Id knock another 2k/m month of on 'stuff'

Computer says no.

 

 

 

but why should they "miss out" on their "dream home" ?

[PeanutButter]

It's mumsnet though. Why would you want to read any of that consumerist gibberish?  

Guarantee somewhere on there women are bickering about which £2000 pram is better. 

[longgone]

And there was me complaining about a £350 mortgage if i ever buy.  2k for the next 30 years good luck with that 

[2buyornot2buy]

Sweet jesus. I honestly didn't realise just how mental the borrowing was in the mumsnet world. I'm am actually flabbergasted. 

2k montages on 5k a month with 2-4 kids. Sweet ******ing lord. The place is filled with thick morons. These people are debt slaves. 

[hotblack42]

27 minutes ago, 2buyornot2buy said:

Sweet jesus. I honestly didn't realise just how mental the borrowing was in the mumsnet world. I'm am actually flabbergasted. 

2k montages on 5k a month with 2-4 kids. Sweet ******ing lord. The place is filled with thick morons. These people are debt slaves. 

That's not quite fair. There is a minority on mumsnet who call out out the f***wit majority.

They might be undercover HPCers of course?

[winkie]

I presume they already have a house, and want a better house......what is the point of using every penny to pay bills and debt?......they should put the extra money away every month, the extra money they would have had to pay to purchase this new home....not dip into it, see how pleasant life is......there is more to life than four new walls.......a new and better place will always turn up, and they will have a cash lump buffer fund to see them through plus the extra monthly £400.

 

 

 

[longgone]

1 minute ago, winkie said:

I presume they already have a house, and want a better house......what is the point of using every penny to pay bills and debt?......they should put the extra money away every month, the extra money they would have had to pay to purchase this new home....not dip into it, see how pleasant life is......there is more to life than four new walls.......a new and better place will always turn up, and they will have a cash lump buffer fund to see them through plus the extra monthly £400.

 

 

 

or just extend ? 

The house that is not the mortgage. 

[zugzwang]

Mumsdebt.

The return of an old favourite. ?

[scottbeard]

£2k out of £5.5k spent on housing costs (36% of income) doesn't seem totally unreasonable for a couple with 4 kids and not wanting more, especially when you consider that when you're on high wages like that they still have a generous £3.5k for everything else (a lot more than some families earn in total).

For me it therefore depends for me on the risk of their employment situations, and how exactly that £2,000pm mortgage payment is derived.  If they're in dicey jobs and it's a 25 year mortgage with a 10% deposit that's hugely risky.  If they're in very safe jobs and it's a 10 year mortgage with a 50% deposit then that's not so bad, as it's not so exposed to interest rate movements, and there may be flexibility to end the term if they get into difficulties.

[scottbeard]

 

48 minutes ago, scottbeard said:

There may be flexibility to end the term if they get into difficulties. 

Was supposed to say "EXTEND" the term ie from 10 years to 25!

[bear.getting.old]

Yes a 2k mortgage isn't bad if you are bringing in 5.5k a month. I know they have 4 kids but blimey-  where is the other 3.5k a month going then??!!!

[Orb]

That post of hers looks more like a brag than anything. Women love to outdo each other in the status stakes, and she's showing off her high earning husband but making it look like a financial conundrum. Every forum you go to there'll be at least one person whose posts are thinly veiled attempts at letting you know how well they're doing. 

[nome]

2 hours ago, Orb said:

That post of hers looks more like a brag than anything. Women love to outdo each other in the status stakes, and she's showing off her high earning husband but making it look like a financial conundrum. Every forum you go to there'll be at least one person whose posts are thinly veiled attempts at letting you know how well they're doing. 

More commonly known as a ''stealth boast''

[Fletcher]

4 hours ago, Orb said:

That post of hers looks more like a brag than anything. Women love to outdo each other in the status stakes, and she's showing off her high earning husband but making it look like a financial conundrum. Every forum you go to there'll be at least one person whose posts are thinly veiled attempts at letting you know how well they're doing. 

This. 

[Fletcher]

1 hour ago, nome said:

More commonly known as a ''stealth boast''

Humble brag. 

[user not found]

4 hours ago, Orb said:

That post of hers looks more like a brag than anything. Women love to outdo each other in the status stakes, and she's showing off her high earning husband but making it look like a financial conundrum. Every forum you go to there'll be at least one person whose posts are thinly veiled attempts at letting you know how well they're doing. 

A 30yr old female colleague like that! Every day there's a complaint about how much she has to spend on school fees... Nursery... School meals... All are actually boasts of how "rich" she must be.

[winkie]

1 hour ago, scottbeard said:

£2k out of £5.5k spent on housing costs (36% of income) doesn't seem totally unreasonable for a couple with 4 kids and not wanting more, especially when you consider that when you're on high wages like that they still have a generous £3.5k for everything else (a lot more than some families earn in total).

For me it therefore depends for me on the risk of their employment situations, and how exactly that £2,000pm mortgage payment is derived.  If they're in dicey jobs and it's a 25 year mortgage with a 10% deposit that's hugely risky.  If they're in very safe jobs and it's a 10 year mortgage with a 50% deposit then that's not so bad, as it's not so exposed to interest rate movements, and there may be flexibility to end the term if they get into difficulties.

Yes, if £5.5k income every month of the year guaranteed.....36% income as you say is easily affordable.......all depends on other expenses, responsibilities and debt usually car, transport, school fees, children including other children.......people tend to live up to their incomes however much they earn.....very many spend more than they earn, however much they earn.......how rich you are has little to do with how much you earn.