Mortgage Payments - WHat Do Feel Comfortable Paying

[MaryPoppins]

Mrs OG and I both work. I am comfortable with a mortgage level that I could afford if Mrs OG wasn't working and I had to take a 50k p.a. permie job.

Same here really. I own a house, and rent it out.

Meanwhile, I've moved to a rented house in a much more expensive and central location. This should hopefully mean I can send the boy to a 'better' school and allow me to continue contracting, which will in turn mean the mortgage will be paid off in around seven years while enabling me to continue to save a decent warchest.

Here's hoping, anyway!

[alreadypacked]

Same here really. I own a house, and rent it out.

Meanwhile, I've moved to a rented house in a much more expensive and central location. This should hopefully mean I can send the boy to a 'better' school and allow me to continue contracting, which will in turn mean the mortgage will be paid off in around seven years while enabling me to continue to save a decent warchest.

Here's hoping, anyway!

Check which london borroughs are building at the moment, when I was living in Soho, I could have bought an apartment from Westminster if I was living there 2 years for about 250K.

[MaryPoppins]

Check which london borroughs are building at the moment, when I was living in Soho, I could have bought an apartment from Westminster if I was living there 2 years for about 250K.

Oh, I'm not a big smoke person. I own a house in the midlands where it's very very cheap to buy and there's a huge rental market. I now live effectively in the cotswolds so I have a bit more choice with work. London's a bit far for this gal!

Agree with you that owning is overrated though

[Scoobos]

You would be insane to sign up to that. INSANE I say. - a minor bump in the road and you'll be on your way to a heart attack.

3k a month for 2 years is a lot to lose when they repossess and give you zero back.

[Pondlife]

That made I laff. ta!

That.

[mercenary]

2 bed bungalow £375k in reigate. You just get used to the prices.

Currenty looking at a house here, 8 beds, outbuildings, 3 acres, stunning house and gardens.

£725k

Trouble is with this is that it is a lifestyle question - huge house and garden = a lot of maintenance and isolation whereas a small house in London means much more time to go out and socialise as well as plenty of good contracts on tap.

[mercenary]

You would be insane to sign up to that. INSANE I say. - a minor bump in the road and you'll be on your way to a heart attack.

3k a month for 2 years is a lot to lose when they repossess and give you zero back.

You could get an interest only mortgage (there are still some about) and overpay while times are good - you are allowed to overpay 10% per annum. While times are bad, you just pay interest which is probably around £1200/month - which is roughly the same as renting. At least at the end of the day you end up with a London property - one of the few assets holding up these days.

[Lockhouse]

Hi All

I am about to take the plunge and buy a house in Wimbeldeon. I have a 25% deposit and am looking to borrow 550K. Halifax have a 3.69% mortgage which means that monthly repayments are 3K a month.

In the grand scheme of things 3k a month is not a lot if you are on 525 a day - The problem is what happens if you lose your contract!! I have some savings left after the mortgage (about one years worth) in the war chest but the question for you intelligent folks are....

What mortgage monthly repayment wiould you start to feel stretched at? Is 3K a month in mortgage payment a lot??

I would not be happy, I would say 2K per month maximum mortgage, even that means you'll have to take out a total of 4 or 5k after tax just to make ends meet. 3K mortgage is just too much. Better save and wait, house prices aren't going anywhere anytime soon.

[SantaClaus]

DeludedAussie... a word of advice:

Firstly, there is no way that rates are going up more than a fraction of a percent over the next few years. To do so would be suicide for the government.

But... you need to think about the availability of credit, which is being tightened all the time.

You may be able to get a 3.69% mortgage now, but when your good deal runs out, can you guarantee you will still be contracting or earning the same income?

If not, you may find it very hard to get another deal when the current one runs out, and your existing bank will move you to their standard rate of 5%+ and insist on capital repayments rather than interest only.

[alreadypacked]

You could get an interest only mortgage (there are still some about) and overpay while times are good - you are allowed to overpay 10% per annum. While times are bad, you just pay interest which is probably around £1200/month - which is roughly the same as renting. At least at the end of the day you end up with a London property - one of the few assets holding up these days.