Mortgage payment % of income

sequin123

Hi

I just wondered if there was a rough guide on what % of your income should go on your monthly mortgage payment.

Ours is currently 16% as we have a benefitted from a +0.79 tracker however we want to move to a bigger house and will go to 23% and obviously we need to factor in interest rate rises.

I appreciate its all down to personal circumstance but just be interested to know what the recommendation would be on what you should aim for.

Thanks

Chris_Hinds

Our Mortgage lender suggests that the payment should be no more than 33% of income. Ours is currently 25% of income.

dimbo61

Why worry about interest rate rises !
Long term 5/7/10 year fix and overpay during that time to reduce the balance
Lots of mortgage lenders websites have afordability calculators to give you a rough idea.
I pay over 50% but I want to do that! Mortgage Free cant come soon enough.

beecher2

If you are working out % of income, don't use present day base rates as they're not going to last for the term of the mortgage. Work it out using a base rate of 5%, or look at what fixed rates are available, and use those figures. Make sure you can afford rates at 10% at a push.