how much of your income is your mortgage

eyegeegeewhy

Hi

I am currently saving for a deposit but I worry about how much of my current income i can assign to paying for a mortgage.#

So just wandering, what % of your total monthly income do you spend on your mortgage?

inked

At the moment around 40% of net income, but this is too much and hoping that next year it will be about 25%.
IMO its fine to aim around 30%

jackieb

About 20% of our gross income.

opinions4u

6% of combined gross income.

Due to never increasing the debt when moving house down the years (and a handy lifetime tracker at the moment).

liney

17% combined net income.

fleebert

mine's about 25% of my net income.

Gorgeous_George

15% for us but it will vary and mean nothing on its own.

If I was starting out I'd work out all the non-mortgage costs to find out how much was available for the mortgage - assuming a 7.5% rate. Then I'd buy the biggest house that I could in an area that I liked.

GG

VKay

We will be paying about 17% of our net income (both full time jobs). But we are on a fixed mortgage so this will no doubt change in the future.

Muhasib

I was interested as to why some people quote gross income, is there a good reason for this as I thought it makes sense to only work this out from your net income?

opinions4u

muhasib wrote: »

I was interested as to why some people quote gross income, is there a good reason for this

I did so to fall in line with the previous poster, thinking it would be easier if readers got the same comparison from all of us.

as I thought it makes sense to only work this out from your net income?

Why? Either measure is perfectly reasonable. It's just easier if everybody quotes the same way, but the OP didn't clarify gross or net.

If clarity isn't sought in the wording of a question, you are unlikely to get clarity in the answers either!

jackieb

I quoted gross as my husband has been on a high K tax code for the past 14 months. Also, his income varies from month to month. I thought it would be easier to work it out from his annual gross salary. For instance this month our mortgage payment was over 50% of his monthly net pay, but that's not the norm.