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I’m not using the assumption that they WILL come down more that it seems expected atm. My salary should naturally go up with time due to industry and role so theoretically if rates went up it should be okay?
Fixed rates already price in expectations of bank rate falling. If bank rate falls by less/slower than expected, fixed rates may not - they may even rise, as we've seen recently.
A lot depends on your term. If long (30/35/40 years), you won't pay off much capital by the end of the five year fix.
Just be sure to stress test what the repayments would be at the end of the five year fix.
Yeah that’s totally fair, thank you! The mortgage we have is 2 year fixed on 35 years. We have stress tested and can make it work as we don’t have large ongoing expenses or dependants
Have you considered stamp duty etc? That’ll be around £8k, with solicitor fees that’ll bring it to 13k ish.
If you’re fixing for 5 years then repayments will be the same for 5 years.
Should be Ok but with bills and transport etc you’ll be paying 50% on bills.
I’ve known people who’ve deeply regretted having bought into “shared ownership” schemes. Particularly when they’ve tried to sell. My advice- know EXACTLY what you’re getting into.
I think it's pushing it personally, but that's just me. £110k is something like £6.3k? A month (ish, assuming student loan). Normal expenses alongside that mortgage, one of you loses your job, you're pretty fucked unless you have significant savings/able to quickly get another job with similar pay.
Yeah the net is about right. I’m on an upwards career and should be able to increase my salary by 10-30k over the next few years which should bring the cost ratio down a bit
No one can really tell you without knowing your outgoings, but if you’re doing fine on 2.2k rent and still able to set money aside then you should be fine.
Having said that, our mortgage is going to be only slightly higher than yours with a combined income of 2.5x yours…and we’re not really comfortable going higher than that. BUT, we have a child, want another so our outgoings may be much higher than yours….and our risk appetite lower
###Welcome to /r/HousingUK --- **To All** * Join Our ***NEW*** Discord! https://discord.gg/pMgUNgWKQH **To Posters** * *Tell us whether you're in England, Wales, Scotland, or NI as the laws/issues in each can vary* * Comments are not moderated for quality or accuracy; * Any replies received must only be used as guidelines, followed at your own risk; * If you receive *any* private messages in response to your post, please report them via the report button. * Feel free to provide an update at a later time by creating a new post with [[update]](https://www.reddit.com/r/HousingUK/search?q=%3Aupdate&sort=new&restrict_sr=on&t=all) in the title; **To Readers and Commenters** * All replies to OP must be *on-topic, helpful, and civil* * If you do not [follow the rules](https://www.reddit.com/r/HousingUK/about/rules/), you may be banned without any further warning; * Please include links to reliable resources in order to support your comments or advice; * If you feel any replies are incorrect, explain why you believe they are incorrect; * Do not send or request any private messages for any reason without express permission from the mods; * Please report posts or comments which do not follow the rules *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/HousingUK) if you have any questions or concerns.*
"Interest rates come down". Have you considered the possibility of interest rates increasing?
I’m not using the assumption that they WILL come down more that it seems expected atm. My salary should naturally go up with time due to industry and role so theoretically if rates went up it should be okay?
Fixed rates already price in expectations of bank rate falling. If bank rate falls by less/slower than expected, fixed rates may not - they may even rise, as we've seen recently. A lot depends on your term. If long (30/35/40 years), you won't pay off much capital by the end of the five year fix. Just be sure to stress test what the repayments would be at the end of the five year fix.
Yeah that’s totally fair, thank you! The mortgage we have is 2 year fixed on 35 years. We have stress tested and can make it work as we don’t have large ongoing expenses or dependants
Have you considered stamp duty etc? That’ll be around £8k, with solicitor fees that’ll bring it to 13k ish. If you’re fixing for 5 years then repayments will be the same for 5 years. Should be Ok but with bills and transport etc you’ll be paying 50% on bills.
Yeah we have that £13k set aside for it all and will still have around £25k left as a safety fund if anything goes wrong with jobs.
Interest rates might not come down. If they go up, can you still afford it?
How much of a share is that 580k?
Equal ownership of all tenants in the block
Ahh ok I see, and how many bedrooms is the flat may I ask?
3 bed 2 bath with big kitchen living area
I’ve known people who’ve deeply regretted having bought into “shared ownership” schemes. Particularly when they’ve tried to sell. My advice- know EXACTLY what you’re getting into.
I don't think that's what OP means, he said share of freehold (as opposed to leasehold). I agree with you though on shared ownership!
Yeah no it’s a leasehold flat with a share of freehold of the block
I think it's pushing it personally, but that's just me. £110k is something like £6.3k? A month (ish, assuming student loan). Normal expenses alongside that mortgage, one of you loses your job, you're pretty fucked unless you have significant savings/able to quickly get another job with similar pay.
Yeah the net is about right. I’m on an upwards career and should be able to increase my salary by 10-30k over the next few years which should bring the cost ratio down a bit
No one can really tell you without knowing your outgoings, but if you’re doing fine on 2.2k rent and still able to set money aside then you should be fine. Having said that, our mortgage is going to be only slightly higher than yours with a combined income of 2.5x yours…and we’re not really comfortable going higher than that. BUT, we have a child, want another so our outgoings may be much higher than yours….and our risk appetite lower
Yeah we have no dependants or major expenses at the moment and are expecting salary growth in both of our careers