Pmax2020 Posted March 9 Share Posted March 9 I appreciate this is a difficult one to answer due to personal circumstances varying greatly, but how much would you borrow for a home? I’m not long 40, with 2 kids, and a wife that works part-time, but in a well paid job. Our current mortgage and combined income is roughly the same, approx 90k. I stare at ‘dream’ family homes that would increase my mortgage 2 or 3 fold, but I just cannot bring myself to put offers in. We have a nice house already, but I want a bigger garden and more space for the family. More importantly - a better school catchment! The thought of trebling my mortgage in my 40s, when I’ve spent 15 years getting it back below 100k, is truly depressing! Is anyone else in a similar position? Or has anyone bought something at a higher value and regretted it? Quote Link to comment Share on other sites More sharing options...
TenYearToGetMyMoneyBack Posted March 9 Share Posted March 9 Difficult to say. I have mentioned before about a colleague who was very proud of his very average (which is being generous) house as it was actually his and he had paid the mortgage off in under a decade. It also put him in a position where, when the company moved twenty miles (in the wrong direction for him) he could tell them he wasn't moving and demand a dismissal payment. Personally, it was the stupid stamp duty system back in 2011 that put a cap on my borrowings. In 2012 the neighbours paid over three times as much stamp duty as I did for a house that was only £30K more than mine. Quote Link to comment Share on other sites More sharing options...
sell2rent Posted March 9 Share Posted March 9 I would save your time, sanity, financial stability and get out the garden with the kids and get them tuition instead of a more expensive school catchment area. My Mum remarried, moved to a better school catchment area, argued all the time with her new husband over the money she bled him dry for and pushed me into a career I hated. Your mileage hopefully varies! Big houses are over rated and don’t matter. Quote Link to comment Share on other sites More sharing options...
Speed1987 Posted March 9 Share Posted March 9 48 minutes ago, Pmax2020 said: I appreciate this is a difficult one to answer due to personal circumstances varying greatly, but how much would you borrow for a home? I’m not long 40, with 2 kids, and a wife that works part-time, but in a well paid job. Our current mortgage and combined income is roughly the same, approx 90k. I stare at ‘dream’ family homes that would increase my mortgage 2 or 3 fold, but I just cannot bring myself to put offers in. We have a nice house already, but I want a bigger garden and more space for the family. More importantly - a better school catchment! The thought of trebling my mortgage in my 40s, when I’ve spent 15 years getting it back below 100k, is truly depressing! Is anyone else in a similar position? Or has anyone bought something at a higher value and regretted it? I'm in a similar position, three bed semi fortunately we have a decent sized garden, which we don't want to compromise on. I have two children, with one on the way. Could do with at least three reception rooms down stairs. Ideally a 5 bedroom or something similar. However like yourself my mortgage is 90k and I'm eyeing up houses with more space but cannot bring myself to take on a 200k mortgage or more. We have a good standard of living, my partner works part-time so we don't need any child-care. This has also enabled us to support their development which has really paid off. Particularly for my son, whom could study medicine at any uni of his choice. I think it's a waiting game tbh, once we've had the general election we will be in a better place to anticipate the future. Quote Link to comment Share on other sites More sharing options...
DownwardSlopingPlateau Posted March 9 Share Posted March 9 (edited) 4 minutes ago, Speed1987 said: I think it's a waiting game tbh, once we've had the general election we will be in a better place to anticipate the future. This^ Edit: But £200k-300k max. Even though I don't need one, might work out better, so I can leave more invested. Edited March 9 by DownwardSlopingPlateau Quote Link to comment Share on other sites More sharing options...
70PC Posted March 9 Share Posted March 9 For me it is about managing risk. You have a home and stability. It maybe not be perfect but still a vastly better than for many with oversized mortgages coming off cheap rates this year. It is also much worse for those losing jobs at the same time. If it was me, I would sit tight until the market position is clearer. Quote Link to comment Share on other sites More sharing options...
Speed1987 Posted March 9 Share Posted March 9 (edited) In hindsight, I think the lockdown was the best time to move. If I could go back and lock in on a 10 year fix with a larger mortgage, I would. With that in mind, I guess is it worth sacrificing that extra money now on a higher rate on a 2-3 year fix and then if rates lower by 26/27 that will make things easier.... Choices, choices, choices. Edited March 9 by Speed1987 Quote Link to comment Share on other sites More sharing options...
sell2rent Posted March 9 Share Posted March 9 3 minutes ago, Speed1987 said: I'm in a similar position, three bed semi fortunately we have a decent sized garden, which we don't want to compromise on. I have two children, with one on the way. Could do with at least three reception rooms down stairs. Ideally a 5 bedroom or something similar. However like yourself my mortgage is 90k and I'm eyeing up houses with more space but cannot bring myself to take on a 200k mortgage or more. We have a good standard of living, my partner works part-time so we don't need any child-care. This has also enabled us to support their development which has really paid off. Particularly for my son, whom could study medicine at any uni of his choice. I think it's a waiting game tbh, once we've had the general election we will be in a better place to anticipate the future. I wouldn’t wish my worst enemy into a career in medicine in the UK. Unless HE really wants it and it isn’t pressure from any outside forces. I did it for 25 years including study, hated it all and ended up earning several times as much in IT/business afterwards. Quote Link to comment Share on other sites More sharing options...
Speed1987 Posted March 9 Share Posted March 9 (edited) 4 minutes ago, sell2rent said: I wouldn’t wish my worst enemy into a career in medicine in the UK. Unless HE really wants it and it isn’t pressure from any outside forces. I did it for 25 years including study, hated it all and ended up earning several times as much in IT/business afterwards. He's studying Computer science, my partner is a nurse and we've told him to stay well clear of any of the health professions. Its the point about wether to move to a better catchment area or provide paid tuition or having free time to provide it yourself. Edited March 9 by Speed1987 Quote Link to comment Share on other sites More sharing options...
sell2rent Posted March 9 Share Posted March 9 (edited) That is a relief Speed1987. Edited March 9 by sell2rent Quote Link to comment Share on other sites More sharing options...
Dazbo1983 Posted March 9 Share Posted March 9 It sounds like we are in quite a similar position in terms of ages, family situation and around £50k mortgage left. As much as we would like a bigger garden, more internal space etc., the trade off in terms of significantly increasing our debt isn’t worth it, in my view. I have settled on being grateful for what we have now, as I think a change in job situation would leave us regretting increasing our mortgage. Personally, I have a low appetite for risk and hope to be mortgage-free by 2-3 years and yearn for the security this will bring. Rather than get a bigger house & mortgage at this point, would rather reduce the time I spend working slightly, as well as invest more in to retirement planning. We can buy bigger houses and more space via credit if we choose…but no amount of credit will buy us any extra time in this life. Make the most of what we have. Quote Link to comment Share on other sites More sharing options...
PeanutButter Posted March 9 Share Posted March 9 Turn off rightmove alerts. Delete the apps. Unsubscribe from agent emails. You already have everything you need, and you know this. But there are multiple industries built around making you unhappy, feel inadequate, anxious. Quote Link to comment Share on other sites More sharing options...
TenYearToGetMyMoneyBack Posted March 9 Share Posted March 9 (edited) 20 minutes ago, Dazbo1983 said: …but no amount of credit will buy us any extra time in this life. Make the most of what we have. You are sounding like my retiring colleagues. I disagree with the "money can't buy time" although I will admit I spent far too much time on Autotrader looking for a "bargain" car with a decent warrantee. I did like the fact that the salesman I eventually bought from obviously read me and didn't mention credit once. It was the third car I have bought with a Switch card. Back to the original question allow yourself some headroom. You never know when you will have an unexpected outlay. Edited March 9 by TenYearToGetMyMoneyBack clarity Quote Link to comment Share on other sites More sharing options...
mynamehere Posted March 9 Share Posted March 9 What's depressing about a bigger mortgage? It's just borrowing against future income. I spent a year or so in a cheap mortgage free house. It didn't feel any different or better than before I paid it off. I don't empahsise at all with the 'feeling of owning outright'. Either way I had roughly the same net worth. As for uncertainty of future income, I figure I can always downsize back down to the smaller house. However if my income doesn't fall, it's not possible to get back the time you would have spend in the nicer place. Quote Link to comment Share on other sites More sharing options...
mynamehere Posted March 9 Share Posted March 9 57 minutes ago, Speed1987 said: He's studying Computer science, my partner is a nurse and we've told him to stay well clear of any of the health professions. Its the point about wether to move to a better catchment area or provide paid tuition or having free time to provide it yourself. The result will largely be the same either way. The kid's outcomes will reflect what resources the parent's put in, and I doubt it matters all that much whether that comes in the form of private tuition etc, or more passive means. Nicer catchments however generally mean less stress, noise, mess overall. Just comes with the territory? Quote Link to comment Share on other sites More sharing options...
desiringonlychild Posted March 9 Share Posted March 9 When i was 27 and husband was 29, we borrowed 4.5 times household income (now whittled down to 2.25 times household income after 4 years) but now i wouldn't borrow more than 3 times household income. And that is household income roughly in mid 30s so hopefully we can pay it back faster. Quote Link to comment Share on other sites More sharing options...
Huggy Posted March 9 Share Posted March 9 2 hours ago, PeanutButter said: Turn off rightmove alerts. Delete the apps. Unsubscribe from agent emails. You already have everything you need, and you know this. But there are multiple industries built around making you unhappy, feel inadequate, anxious. Perfectly said! Quote Link to comment Share on other sites More sharing options...
Bonkers2016 Posted March 9 Share Posted March 9 3 hours ago, Pmax2020 said: I appreciate this is a difficult one to answer due to personal circumstances varying greatly, but how much would you borrow for a home? I’m not long 40, with 2 kids, and a wife that works part-time, but in a well paid job. Our current mortgage and combined income is roughly the same, approx 90k. I stare at ‘dream’ family homes that would increase my mortgage 2 or 3 fold, but I just cannot bring myself to put offers in. We have a nice house already, but I want a bigger garden and more space for the family. More importantly - a better school catchment! The thought of trebling my mortgage in my 40s, when I’ve spent 15 years getting it back below 100k, is truly depressing! Is anyone else in a similar position? Or has anyone bought something at a higher value and regretted it? I was about to pull the trigger on 200k Mortgage / 70k deposit was approx. 1.3k monthly payments at 6%. Deal fell through. I'm now contemplating half that now (100k mortgage) and be in a mortgage free position in 3 years but still in two minds. Quote Link to comment Share on other sites More sharing options...
deerohdeer1 Posted March 9 Share Posted March 9 @Pmax2020 @Speed1987 @mynamehere I'm 38... 39 this year. Household income near enough 100k between my decent pay and her not so great but worthwhile job pay. No kids (want one this year). 120k on the mortgage. Similar situation want to sell the house and move to a forever home in 2025. I'd take 250k maybe even 280k mortgage for the right house at the right price. Awful subject but you if you have a likely inheritance coming in the next 10-15 years that is worth considering when it comes to how you feel. The situation is so unfair and it's so unpredictable but ultimately you have to decide how you feel about it and how important having a place where you truly feel 'this is what I want' is to you. Quote Link to comment Share on other sites More sharing options...
Pmax2020 Posted March 9 Author Share Posted March 9 (edited) Interesting comments, and appreciated. @mynamehere I guess I’ve been risk averse my whole life. I fear losing my job, even though I know it’s very secure. Paying a mortgage whereby £500-750 per month is pure interest would kill me! @deerohdeer1 Inheritance is a valid point. We effectively have 3 sets of parents, so it is inevitable that before we pay off our mortgage, we will get some monies coming our way that’ll help. Still, I wouldn’t want to borrow an amount I wasn’t confident I could clear myself, and before I hit 65. @Speed1987 yup, similar situations. I know a bigger house can seem superficial to some, but extra space for WFH would help a lot. More space for the kids and their hobbies as they grow up too. I’d love a detached house so I could pick up the musical instruments I used to play when I was younger. Id have no issues borrowing up to 200k if I move this year…. the question is, do I have the potato’s to borrow 300k to buy a place I spent my childhood and 20s believing I’d never own… Edited March 9 by Pmax2020 Quote Link to comment Share on other sites More sharing options...
deerohdeer1 Posted March 10 Share Posted March 10 3 minutes ago, Pmax2020 said: Interesting comments, and appreciated. @mynamehere I guess I’ve been risk averse my whole life. I fear losing my job, even though I know it’s very secure. Paying a mortgage whereby £500-750 per month is pure interest would kill me! @deerohdeer1 Inheritance is a valid point. We effectively have 3 sets of parents, so it is inevitable that before we pay off our mortgage, we will get some monies coming our way that’ll help. Still, I wouldn’t want to borrow an amount I wasn’t confident I could clear myself, and before I hit 65. @Speed1987 yup, similar situations. I know a bigger house can seem superficial to some, but extra space for WFH would help a lot. More space for the kids and their hobbies as they grow up too. I’d love a detached house so I could pick up the musical instruments I used to play when I was younger. Id have no issues borrowing up to 200k if I move this year…. the question is, do I have the potato’s to borrow 300k to buy a place I spent my childhood and 20s believing I’d never own… You've also got to think of your lifestyle. For me, I barely drink, the fiancee is tee total (no she's never been an alcoholic just a fitness freak who doesn't like booze), how much is that saving a month? We're both homebodies that like to go out during the day, catch a show, cinema, go milling around town but the point is we're not about the living it large life and also it means that we both get a higher satisfaction and being content when we're in a nice home. We both have dirt cheap gym membership and my one vice is golf. So you do the maths in your head, how does all this affect affordability and how important is having that home based on your lifestyle. Quote Link to comment Share on other sites More sharing options...
Orb Posted March 10 Share Posted March 10 Nothing. I can't bring myself to do it. I feel fundamentally opposed to the idea of borrowing hundreds of thousands of pounds to be paid back over 3 decades with lots of interest simply to secure a a roof over my head. I resent the exploitation, and working everyday in a job that doesn't even come close to satisfying my soul feels like burnout and slavery. I'm on the brink of spending some of my savings on a motorhome for full time living, and the devil may care about the future. Quote Link to comment Share on other sites More sharing options...
Stewy Posted March 10 Share Posted March 10 Nothing. I bought my house with cash and it is such a relief not paying rent or a mortgage. It's worth a nice pay rise. Quote Link to comment Share on other sites More sharing options...
whitemice Posted March 10 Share Posted March 10 If you have investments, the money works to enrich you. If you have debt, you're working to enrich someone else. The counter point is, if you expect the price of housing to double or more every decade, then fill your boots, provided you downsize when you retire. Quote Link to comment Share on other sites More sharing options...
Social Justice League Posted March 10 Share Posted March 10 F4ck borrowing worthless fiat. Quote Link to comment Share on other sites More sharing options...
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