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% of your take home salary on mortgage payments?

white_noise
Posts: 116 Forumite
following on from the thread 'what is a reasonable price for a house', i'm interested in finding out how much of peoples/joint income take home pay (who have a mortgage) goes on your mortgage payments each month, obviously this have changed recently with the interest rate cuts but what was the general when they were at 5% or so
i was thinking that paying more that 50% of your take home pay on your mortgage would not be possible given all other bills and cost of living. iand 40% is ideal.
whats peoples thoughts on this?
surely this should come into the equation on if you can actually afford a house?
would be interested to know if anyone actually has payments more that 50%
Cheers
WN
i was thinking that paying more that 50% of your take home pay on your mortgage would not be possible given all other bills and cost of living. iand 40% is ideal.
whats peoples thoughts on this?
surely this should come into the equation on if you can actually afford a house?
would be interested to know if anyone actually has payments more that 50%
Cheers
WN
0
Comments
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Currently 23.5%
When int. rates around 5% - 29%WARNING!Alcohol can make you think you are more interesting and attractive than you actually are.....0 -
7%.
Bought at the bottom of the last crash and are still living in a property which is now too small for us.
Before the interest rate cuts it was about 10%.0 -
I will not benifit from any rate cuts until my fixed rate ends on 1st May. I will also be getting a 8% pay increase starting next month (this is the last year in a 3-year pay deal). So, the % will come down a lot in the next few weeks.
Anyway, my current rate is 5% and this costs just under 15% of our joint income.
I wish to point out that it has not always been the casem, when we first started out, it was touching 50%.0 -
24% and that seems quite high to me. Plus our combined income is quite large.
If one of us lost our job it would be 38% of my post-tax income and 65% of her income.0 -
In terms of my interest only mortgage...
In Sept, when interest rate was 6.49% - 49% of take home
Now.. rate is 2.5% - 19% of take home
May i be the first to say "woohoo". However.. this is my income alone. Even at 6.49% I was able to save a little. Now I can save a lot. My wife also earns... but i don't factor that into this.
So, yes, you can live on > 50%.. but it helps to have someone else in the house earning also. Even when it was at its worst, it was only 28% of joint income. Now it's 11% of joint.
There is a problem in your reasoning. You only need a certain amount to spend on bills/food, and this doesn't have to be proportional to your income or mortgage. So, my 89% of remaining income may be less or more than other peoples.0 -
38% of my salary goes on my mortgage.
I thought fixed rate was a good choice at the time......Some days you're the dog..... most days you're the tree!0 -
We have a repayment mortgage on a tracker.
Before the interest rate cuts the percentage of take home pay was 15%. Following the cuts if we paid the required amount it would be 10%.
However, we are overpaying the mortgage to try and get rid of it, so current percentage is a scary 45%.0 -
We've got a fixed rate for another 18 months or so :-( so interest rates have no affect on me atm.
So jointly our mortgage is 28% of our takehome pay
If i lost my job then it would be 49% of DH takehome pay
If DH lost his job it would be a staggering 62% of my wage :eek:
Not very good at working out the % so I might be WAY offBanana LoversBuy your bananas in bunches of 5 on Sunday. Then arrange them in order of ripeness and write a day of the week on each banana in felt pen, Monday on the ripest, Friday on the greenest to save time making those decisions on a hectic weekday morning0 -
Not counting overpayments, the required monthly payment is 33% of my take-home salary, though I also make regular overpayments which takes it up to 47% (yikes!)
This is on a fixed rate at 4.84%, though we're about to drop onto the SVR which will take the required payment down to 26% for short time.
This is not counting Mrs JayZed's self-employed income, which is currently very little as she's studying and only working very part-time.0 -
We're paying 50% of my OH's pay, but with my self-employed earnings it probably goes down to about 40%. It is a struggle though - if I wasn't earning we would be watching the pennies very carefully.0
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