I earn around £60k, and with bonuses, my income usually falls between £65-85k yearly. My wife makes about £33k. Recently, some colleagues in similar roles (who earn roughly £80-100k) told me they think it’s crazy to be on a £1650 mortgage for 35 years. To me, it doesn’t feel that out of line, but their reaction threw me. Is this just a generational difference? For us, the math seems to work without any major budget strain.
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Seems fine to me. Definitely better than paying rent 
Jordan said:
Seems fine to me. Definitely better than paying rent
Totally. At the end of it, you’ll own the home outright and won’t have rent to worry about anymore.
Jordan said:
Seems fine to me. Definitely better than paying rent
Totally. At the end of it, you’ll own the home outright and won’t have rent to worry about anymore.
Can’t always rely on home prices going up, though. Some areas, like parts of the North East, have barely changed in decades.
@Fraser
True, but that’s also made it more affordable to live there, so it depends what you want.
Jordan said:
Seems fine to me. Definitely better than paying rent
Totally. At the end of it, you’ll own the home outright and won’t have rent to worry about anymore.
But over 35 years, the interest can get really high. For example, on a £300k house with 4.5% interest, you could end up paying nearly £600k over time.
@Vega
But if you buy a house, it’s a place you own. With rent, you get no asset. Even if it costs more, at least you’re not paying someone else’s mortgage.
Bryn said:
@Vega
But if you buy a house, it’s a place you own. With rent, you get no asset. Even if it costs more, at least you’re not paying someone else’s mortgage.
I was more pointing out that the less you borrow, the less interest you end up giving away to the bank.
@Vega
Buying now fixes your costs. Rent might go up every year, but your mortgage payment will mostly stay the same, making it more affordable over time.
Nevin said:
@Vega
Buying now fixes your costs. Rent might go up every year, but your mortgage payment will mostly stay the same, making it more affordable over time.
That works if life stays stable, but unexpected changes do happen, and sometimes it’s hard to plan for those.
@Vega
Most people get raises over 35 years, so I think the payments will feel easier over time. And this might not be their forever home anyway.
Teal said:
@Vega
Most people get raises over 35 years, so I think the payments will feel easier over time. And this might not be their forever home anyway.
Things can change fast. Life has its curveballs.
@Vega
Remember that £1 in 35 years isn’t worth the same as £1 today. Inflation means that paying £600k over decades isn’t quite what it seems.
@Vega
Really, it’s about hoping that mortgage payments stay lower than rent would.
Finn said:
@Vega
Really, it’s about hoping that mortgage payments stay lower than rent would.
Exactly, it’s all a bit of a gamble since no one can see the future.
@Vega
Where I live, £1,650 is the rent for a one-bedroom flat. Mortgage might actually be cheaper than renting!
Florence said:
@Vega
Where I live, £1,650 is the rent for a one-bedroom flat. Mortgage might actually be cheaper than renting!
Assuming you can keep affording it.
@Vega
Don’t forget you’d spend a similar amount on rent over the years anyway.