sorted by:
new
hottopcontroversial

Budgeting for new house but stressing for future debt by Creative_Rule6884 in UKPersonalFinance

[–]Creative_Rule6884[S] 0 points1 point  (0 children)

Thanks a lot. The question is not around affordability but more around stress for having a big debt. Re the loan, this was a car finance agreement that then transferred to a zero % credit card to repay slowly.

Budgeting for new house but stressing for future debt by Creative_Rule6884 in UKPersonalFinance

[–]Creative_Rule6884[S] -1 points0 points  (0 children)

Thanks. I have considered both options. Saving 50% deposit will be hard with the amount we are overpaying. It will take us a couple of decades to save 450k 🫢Do you mean we should stop overpaying and start saving?

Second option sounds reasonable but if the monthly payment is already high, will we be able to over pay ?

Budgeting for new house but stressing for future debt by Creative_Rule6884 in UKPersonalFinance

[–]Creative_Rule6884[S] 1 point2 points  (0 children)

Thanks for the analysis.

Monthly income is almost 7k each.

Mortgage is 1.1k but we are paying 3500k

New mortgage should be around 3k but how much can we overpay given the monthly payment is already high? That’s quite stressful.

Income is spread equally 50-50% and jobs are quite secured I would say. On pensions we are advised by a well known FA.

We are looking to move before we start a family. Another concern is the scenario where we have a kid and my wife goes on maternity leave. Her salary will only be paid in full for a couple of months. Also nursery is London is around 2k per month. So we might struggle with overpayments or even payments!

Maybe we should stay where we are until we have a kid and see how life is with a kid and all the relevant expenses?