# Advice on Mortgage



## bluevortex (Aug 10, 2007)

Hi Guys

Would really welcome a few comments.

My sister is selling her house - a large 3 bed detached villa. Very nice, private property. She is looking for a quick sale and has dropped the asking price £230K (valued at £260K early 2008). Now both me and my Mrs are extremely intersted in the property. We would be moving up the property ladder from a 2 bedroom semi - so a huge leap for us. We are wanting to start a family 

I have checked with my mortgage lender and the further borrowing (additional £70K) would make our monthly repayment £1200. We have a combined income of £3500 and both work for governmount agencies so job security is about as good as it gets at the moment. My question: is this too much of a financial commitment? Most people I have spoken to say you have to stretch to move up in property. What do you think?


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## EliteCarCare (Aug 25, 2006)

Depends on how big the rest of your outgoings are, just sit down with your Missus and put together a detailed income vs outgoings statement and see where you are after that! :thumb:

You also need to consider your wife having to stop work and take a reduced level of maternity pay for X amount of months. 

Alex


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## richjohnhughes (Sep 24, 2007)

remember the BBR is the lowest its been at 1.5% - this HAS to go back up sooner or later, so your £1200 monthly payment would go up also.


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## KevJM (Jul 8, 2008)

That is a big proportion of your income on the mortgage and as things get better interest rates will only go up also a lot of local local Government jobs appear to be privatizing quietly as we ourselves have found out. But on the other hand if you are confident then its a good time to move uo.


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## richjohnhughes (Sep 24, 2007)

thinking about it mate - 

have you asked your current lender IF they will do the deal? as a monthly payment of that amount is almost 50% of your joint income, which is high. 

might be worth checking before you get into it further. 

you have stamp duty and fees to think about also.


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## bluevortex (Aug 10, 2007)

It works out at closer to 30% of our joint income, maybe slightly over but not much. I am currently in a 3 year fixed rate with halifax at 5.75% on 100K - there is 2 years remaining in this deal.

My wife is a primary teacher - She plans to only take 6 months maternity leave if we have a litlle one this would hopefully coincide with summer holidays that teachers get. We do have some savings (all be it not much) that would be used to make up the shortfall in income during that period. 

I am about to get a £1200 pay award in July and my wife will get £1500 in August. These have not been included as part of the £3500 joint income.

Its one of these do or don't moments and it seems just too good to miss out on. We are both worried we would regret it later on?


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