% of income on mortgage repayments

leanne86

Sorry if this has already been asked somewhere!

Myself and my partner have a joint income of £2600 a month, we have saved a 10% deposit (13500) and are looking at properties around £135 000. The mortages we have found cost about £800 a month (i only want a fixed mortagage), so approximately 1/3 of our joint income, does ths sound about average or do people spend more / less in terms of percentage of their income?

Many thanks in advance!

Hippychick

Our mortgage is 29% of our joint income so similar to what yours would be.

It's all relative at the end of the day if you spend half of your income on toys, gadgets, whatever then you won't be able to afford your mortgage.

If you actually live within your means and stick to your budget you should be fine.

Tbh 1/3 is actually very good compared to the heady heights of 2007 when people were borrowing massively and the monthly payments were 50%+ of monthly income.

opinions4u

I think this link to LBG/Halifax data helps to answer your question.

Q3 2009 suggests mortgage repayments as a percentage of income are 30.1% nationally. I am assuming that this is based on new mortgages being taken out.

Additionally, the average purchase price is 4.43 times income with the biggest stretches in the South West and Northern Ireland.

techno12

My income is similar to yours and I'm paying £1100 a month (overpaying my tracker - it should be £650) and find that easily affordable, and in fact could probably go up to £1500 no bother. So I reckon you'll be just fine on £800.

However, depends on lifestyle I guess. I'm single with no kids etc (I run a car and spend far too much cash in pubs/bars) but for me, it's easy at the moment..

leanne86

Thank you everybody. That's been really helpful