Hi all, I'm currently a first time buyer looking at houses and apartments.
My take home pay is £5000 p/m.
I have an agreement in principle up to £360k.
I'm torn between a lower price apartment (200-260k) and one that is on the upper end (300-350k).
From my perspective, I have no standing debt and no judgements, etc. Pretty good credit. Very few outgoings (no netflix, prime, only Spotify).
I'm been weighing my options of a 30 year or a 20 year mortgage, I've spoken to a few advisors and my interest is looking like it will be around 5.1%. The interest saving on the 20 year is around £100k, which I find very attractive.
For a 335k mortgage, I feel like I could stretch to 2-2.5k per month. Council tax would be around £300-400p/m, groceries £200-300p/m, household bills £250-300.
This would bring the running monthly total to £3,500 per month.
I do get irregular bonuses at work, historically £10-15k per year, but they are not guaranteed.
I would like to continue to save (currently saving around 2k per month). But I understand it may initially fall by the wayside, whilst I furnish the apartment.
Two things:
Am I being unreasonable with my expectations for what I can afford?
Based on a S&S ISA return of between 8-10% yearly, would I be better going for a 30 year and saving the mortgage difference, without overpaying; or would I be better being less comfortable and going for the 20 year?