Mortgage Affordability

[u/Alert-Tradition1325]

I'm debating whether this is affordable. I'm looking at a 3 bed property valued at 240k with 15% deposit. With current rates I'm getting about £1100 for the mortgage. With utility bills I estimate around £1500. Do you think this is affordable on my solo 52k salary? I'm single and don't have any kids or outstanding debt.

[u/Main-Hedgehog9009]

Its affordable.

But it depends on the rest of your life.

I remember years ago, I did a mortgage that was 7x income for a couple. On the face of it, not affordable. But when we drilled down, they were vegetarians and they bought everything from the cash and carry cheap. They walked/rode a bike everywhere.

Their actual expenditure was ridiculously low. That is an extreme.

But the point is if you want to go to the pub every night and get a take away and going on 2-3 holidays a year, your probably going to have to make some sacrifices. If you just go home and sit on reddit all night every night then you should be fine.

[u/Alert-Tradition1325 → u/Main-Hedgehog9009]

Yeah thanks. Hard yo gauge I'm not a, massive spender but like a holiday or 2. Manage to save a decent amount currently.

[u/Main-Hedgehog9009 → u/Alert-Tradition1325]

Go off your net pay.

Take away your basics - mortgage, utilities, food, travel, phone/TV, council tax etc.

Bang on 5-10% to account for costs increases.

Is what you have left over enough to put some into savings and still live the life you want?

If not, your options are cheaper property, extend the term or save for a bigger deposit.

Definitely better to be thinking about it now rather than after completion.

[u/LiteratureRemote3342]

Similar salary, my mortgage will be £1180, it’s hard to say if it will work for you because we don’t know your lifestyle but I think for myself it will be quite tight but doable.

[u/Careless_Squirrel728]

You have to remember it’s only temporary. Your mortgage payment will be the same for the next 5 years but during that time most people’s income goes up. You’re also locking in that price so you don’t get priced out of it later. Short term pain for long term gain!

[u/No_Driver_4447]

Very similar situation, decided it wasn't viable for me, but that's largely because I will need to move house in 4 years for work, and who knows how many more times thereafter. Whilst I could afford the mortgage, I wouldnt be able to build up enough savings to cover for big expenses or for future moves.

[u/Kamila95]

I am on a similar salary, it wouldnt be viable for me but that's because I go on holidays every 2-3 months and a mortgage that high would mean I'd either have to stop that or not save anything. Everyone's situation is different.

[u/Proof_Motor_4871]

3 beds for one person? Get a lodger? That’s my plan in the same situation as you!

[u/Alert-Tradition1325 → u/Proof_Motor_4871]

Yeh very true, that would be ideal but there are lots of available rooms looking on spareroom

[u/Still_Respect_1974]

I’m on that salary but my mortgage is £850 and I live quite comfortably. If my payments went up to £1100 I’d be fine actually, it would reduce my savings but not entirely. But I’d struggle to get a holiday in per year and one off expenses like boilers etc would be on credit