% of net income on mortgage

sequin123

Hi

We were fortunate to have got a tracker at the right time so we pay 17% of our net income on our mortgage which I think is quite good.

We want to move and will have to increase our mortgate and this will push us up to 26% of our net income going on the mortgage.

I just wondered if this was particularly high as for us personally it is quite a big jump or is it fairly average these days?

Thanks Sally

getmore4less

Other peoples % of income is not that relevent since you don't know what the other comitments are.

What is more relevent is what you have left after mortgage and essentials.

If your essentials are 75% of income then a mortgage of 17% is comfortable 26% is not.

beecher2

I wouldn't be working out what you can afford based on where base rates are today. Work out how much you'd be paying if base rates were 5% - is it still easily affordable?

Gorgeous_George

If the tracker deal is for life or has many years to run I would hope that you are porting your mortgage to the new home. Only new borrowings need to be at the higher rate of a new mortgage.

The %age of income has been asked before. When I bought my first home in 1985 it was just under 50%. Now it is less than 20% but the interest element is just £62 per month.

GG

de1amo

i always thought the percentage was 'dealt with by the mortgage multiples on affordability--seems to have always done me good!