% of your take home salary on mortgage payments?

Nixxx

beecher wrote: »

The average is nearer 20% - by no stretch of the imagination is 70 - 80% normal.

20% for single or joint income? I find it hard to imagine a single income mortgage of only 20% in "today's" market.

daveb975

Nixxx wrote: »

20% for single or joint income? I find it hard to imagine a single income mortgage of only 20% in "today's" market.

It depends when and what someone bought.

A single person on a salary of about £50k would take home £3k per month. If that person bought a house in 1995 with a £50k mortgage, the repayments should be well under £600 per month.

If they bought a house today, they may struggle to get something for that amount.

LittleMissAspie

My rent is 28%, used to be 34% before we moved. If my boyfriend lost his job, my wages would cover the rent and bills (inc food) but nothing else.

Really2

It was around 30% when we purchased in august. I then switched to a tracker

IO part is now 4.4%:o
I then pay in toour offset 30% of our wages.

Lower IE as just meant we are paying back faster.(in fact we have slightly increased our payments.)

mitchaa

beecher wrote: »

The average is nearer 20% - by no stretch of the imagination is 70 - 80% normal.

70-80% is definitely not affordable, this is the kind of territory you are getting in with 8x multiple mortgages.

I would say the normal range would be between 20-40% so 30% average for those that have bought in the last 5yrs or so.

The 3.5 multiple with a 5% IR works out at around 30-35% of take home pay.

Mine is around 20% of joint take home pay or around 37% of just mine.

Paulgonnabedebtfree

mitchaa wrote: »

70-80% is definitely not affordable, this is the kind of territory you are getting in with 8x multiple mortgages.

I would say the normal range would be between 20-40% so 30% average for those that have bought in the last 5yrs or so.

The 3.5 multiple with a 5% IR works out at around 30-35% of take home pay.

Mine is around 20% of joint take home pay or around 37% of just mine.

Depends really. If someone earns £1 million a year take home pay it would mean they have 2 - 300k to live on. Pretty unlikely though I grant you.
Ooh I'm a smartasre today

Stephen_Webber

mitchaa wrote: »

The 3.5 multiple with a 5% IR works out at around 30-35% of take home pay.

Which is pretty much where I am with my mortgage, but only because not long after changing job I got a 10K pay rise. Before that I was on 4.3x my salary over 34 years :eek:

Rose_Crow

Interesting thread!

My boyfriend and I don't own a house at the moment, but are looking to in a couple of years. We'll be paying approximately 31-34% of our joint salaries on a mortgage.

KimYeovil

Cannon_Fodder wrote: »

On which planet?

On what planet are people paying £160 per month for rent/mortgage?

udydudy

Been on variable rate with interest only (0.21 below BoE Base rate)so the highest rates was 5.54% and around £823 a month which was around 21% of joint take home pay.

This month the rate was 1.29% and £164 which is 4.1% of joint.

Once the last feb & march 0.5% rate cuts are factored in it would be 0.29% and £55 which is 1.4% of joint pay.