Am not sure if this is the correct forum so please feel free to move me.
We are currently speaking to an architect about getting plans drawn-up to extend a two bedroom cottage that we bought in May 06 for 250K (currently valued at 210K approx). We currently owe just over 200K.
We need to decide how much we can afford to build-on and I am not sure what factors we should take into account.
We earn 98K between us (about 1300 pw) and have one child but would like another 2 in the future (hopefully one next year) and currently pay 680 per month on creche and 800 pm on morgage. I am in the public sector therefore reasonably secure but OH unsure about job future. We have no debts and every penny of money we have in accounts adds to 50K.
What should the max mortgage payment be as a percentage of salary - should I just base it on my salary e.g. 60% based on an average interest rate of 5%.
I would appreciate any advice and will fill-in the form if required.
Thanks
Tommygirl
We are currently speaking to an architect about getting plans drawn-up to extend a two bedroom cottage that we bought in May 06 for 250K (currently valued at 210K approx). We currently owe just over 200K.
We need to decide how much we can afford to build-on and I am not sure what factors we should take into account.
We earn 98K between us (about 1300 pw) and have one child but would like another 2 in the future (hopefully one next year) and currently pay 680 per month on creche and 800 pm on morgage. I am in the public sector therefore reasonably secure but OH unsure about job future. We have no debts and every penny of money we have in accounts adds to 50K.
What should the max mortgage payment be as a percentage of salary - should I just base it on my salary e.g. 60% based on an average interest rate of 5%.
I would appreciate any advice and will fill-in the form if required.
Thanks
Tommygirl