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Affordability help tryhard1

Posted: Sat Jan 30, 2016 7:33 pm
by mrpoopy345
Hi we have just accepted offer of £190k on our 3 bed end terrace house, we have 90k nationwide mortgage with nationwide over 18 yrs paying £640/ month we have two children aged 6 and 3 we are comfortably off currently husband earns £33k yearly and I am part time earning £16.5k no debts and can cover moving costs and will have £10 k in savings we are looking at buying for approx £290k but extending term to 28 years for 4 bed semi bungalow we are normally v risk adverse so finding this all a bit scary! Our current house is our first house and been here 14 years!

Posted: Sat Jan 30, 2016 11:40 pm
by aliaalias
Only you know if this going to be financially comfortable for you. 28 years is a long time. Much can happen. Unlikely interest rates will remain this low for all that time.

Posted: Sun Jan 31, 2016 4:29 am
by mrpoopy345
28 years is a long time, we took our initial mortgage over 30 years when aged 23 so figure we still have time to pay it off and considering fixing for 5 years then I should be back working full time

Posted: Sun Jan 31, 2016 10:29 am
by stella31231
Nobody can predict all future eventualities, but you should be able to do this. You have already proved that you are able to manage money, and coped with the changes in your circumstances when your children came along.

Take the new mortgage over as long a term as your lender will allow. Calculate what your repayments would be if interest rates were to jump a few percent. Initially, put away the excess over your required payment to rebuild your savings buffer in case of unemployment etc, then start to overpay the mortgage each month. Over time this will minimise the impact of future interest rate rises and hopefully reduce the term of your mortgage.

Good luck with your hunt for your new home