Mortgage repayment amount advice.

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GrainneOToole

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Hi All,
I'm new to AAM and have a question:
Detail:
1. Myself and my other half are thinking about buying a second house for around €560k and selling our own from which we should make around €60k after clearing the current mortgage.
2. The €60k will pay for renovations of the house we're thinking of buying. Renovations will be painting, carpets and new kitchen and bathroom.
3. Our current house is very tight in terms of space (two kids) for our needs. We also want to be nearer to public transport.
4. We have €85k deposit and have approval for a mortgage amount of €475k with an exception to the 20% rule for deposit.
5. Th oldest of us is 49 and will get a mortgage until age 68 on a tern of 19 years.
6. Our net income per month is €7400 and childcare for our girl and boy who are in primary school is €800 per month for both.
7. We work in the County Council (Husband earns €4250 per month) and private sector construction company (me earning €3150 per month). Company is busy and pretty solid despite covid but you never know how things might be in a year.
8. The mortgage repayment will be in the region of €2700 per month leaving €3900 spending money after childcare for food, running the car, health insurance and we'll save around €500 per month to cover an annual holiday.
9. The mortgage payment is 36% of our net income.


We are both very eager to buy a new house but given that the economy might hit the rocks we are a bit anxious.

My question is:
Does anyone think this amount of a monthly mortgage is a bad idea or if it is particularly unusual?

Thanks for reading and all opinions would be appreciated.

G.
 
Are you sure your exemption still stands? Before you go too far down the rabbit hole, I would confirm this given the announcements in recent days.
 
The mortgage payment is 36% of our net income.
That's a little bit on the high side but it's not too bad.

I'm guessing that your OH will have a decent pension when he retires so the priority should be to aggressively pay down the mortgage once your childcare costs start to reduce.

If you need the space, you need the space. Go for it!
 
Thanks Mary McK I'll check that again for sure but we got approval in principle just before the lock-down and it's in place for six months. I know that's not worth the paper it's written on but we're going with Bank of Ireland most likely and I don't think it applies to them or am I wrong? Couldn't see anything about BOI on a google search.

Thanks Sarenco - Yes OH pension will be 40 years when he's 67. I can't see childcare reducing though as it's down to about as low as we can get it. My worry is that if Iose my job we'll have €1550 to live on (no childcare costs in that case) which is a bit meagre but would hopefully not be long-term.
 
This isn't a mortgage switch question. Best stick with the other thread in the buying / selling forum.
 
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