% of your take home salary on mortgage payments?

silvercar

When rates were about 5% we were paying about 20% of OHs net income.

My income arrives in chunks (non technical name for self declared dividends) and we aim for 70-80% of the net amount to go on reducing the outstanding mortgage.

Cannon_Fodder

KimYeovil wrote: »

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

You were saying its "normal" for 70-80% of income to go on housing...and suggesting that those paying 25-40% from this site were outside the norm.

What source tells you that 70-80% is the norm, please?

Why the £160 figure...? I don't see the reference before your post, don't get the context.

Despite several people responding to you that it is possible to pay £160 a month, they are either benefitting from historically low base rates, that are not going to last more than a few months, or have very small mortgages so do not represent "normal" either.

At the risk of boring people with more maths, if average household income is around £35K, depending on source/median/mean etc...but mostly for maths sake...

That equates to approx £2,100 take home.

£160 is less than 8% (for completeness, though I don't know where you get £160 from)
25% of £2,100 is £550
40% of £2,100 is £840
70% of £2,100 is £1,470

Do you genuinely believe that the norm, the majority, of people are paying £1,470 a month in housing and then living off around £600 a month, for everything else?

Sorry I just don't get your maths.

Oracus

31% of income as mortgage payment since the interest rate collapse - was 44% 6 months ago!

Though this does fall to 19% if you take rent payments from my lodger into account.

KimYeovil

I was reacting more from the point of view of renting. I was also including council tax.

The £160 is 20% of £800.

Rent of £500 or £600 per month. Council tax £100 (if you're lucky). Typical net income including tax credits £788 + £25 housing benefit.

£600 for everything else? Ha ha ha! We wish.

I tend to deal and live amongst medians and modes. Means are in a whole different world.

LilacPixie

29% of my income or 12.4% joint.

Spirit_2

On our own home: repayment mortgage of 21% of joint income. We are on a fixed rate until September 09. If our rate improves (4.69%) we will maintain what we pay as an overpayment.

On an IO mortgage on a flat for my mum (not BTL - no rental income) 5% of joint income fixed at 6.29%.This is also up for renewal in Sept, and we would like to maintain payments and convert to repayment.

So for our own home it looks as if it is at the average of most posters on here which is quite comforting.

kunekune

When we move into the new place, it will be 15% (P&I, 18 year term, fringe benefit tax (is that what it's called) included in calculation, but not council tax). The interest portion will initially be 1% of income.

If we drop down to my income only (which will happen at some point), it will be around 25% depending on what interest rate we get, but our other costs will drop as we won't be paying for childcare and won't be paying the extra tax, and I'm not taking into account whether other half will get any benefits, so it's still quite a reasonable proportion.

Eric_Pisch

udydudy wrote: »

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.

Is that interest only? you cant be paying back much principle @ £164 ppm.

If you have an endowment and it follows the stock market you need to allow for the fact its just crashed in value.

We are at 14.7% of joint income

LillyJ

KimYeovil wrote: »

I was reacting more from the point of view of renting. I was also including council tax.

The £160 is 20% of £800.

Rent of £500 or £600 per month. Council tax £100 (if you're lucky). Typical net income including tax credits £788 + £25 housing benefit.

£600 for everything else? Ha ha ha! We wish.

I tend to deal and live amongst medians and modes. Means are in a whole different world.

I'm sorry but whichever average you use, you cannot possibly believe the average household income is £788 a month?

Really2

mewbie wrote: »

Which is extraordinary. The danger is that people get used to it. Round the corner lies higher interest rates, higher prices and higher taxes. Be prepared.

Adding an extra £1000 per month in to the offset is preperation.;)
Since the rate drops I am actualy paying more per month with over payments than when rates were 5.5%.