Salary multiples.

Carter_2

Interesting thread.

I am just about to purchase a new home and increase my mortgage by almost double to what I am currently paying and was getting a bit scared over how much the loan was. However, working it out, it is 3.4 x salary max, hoping it to be 3.25 x (depending on equity of my property for sale). This will work out to be between 30-32% of net earnings. Dont feel so bad now.

plane_boy2000

5.6 Times my income - partner on maternity leave, but will drop to 3.6 time when she is back at work. Makes me feel a lot better looking at what others owe!

Shrimp_Stu

4.5 times my single salary; 40% of monthly net earnings.

When we took out mortgage last year, with joint incomes before wife stayed at home to look after the children: 2.7 times our joint salary & 26.5% of joint monthly net earnings.

biting_the_bullet

Thanks to all who posted. Going on the theme of % of net income, our would be 43% of joint income, this equals 4 x joint salary for us.

By hell its a scary figure to just lose from money earnt. Luckily, we have no other real debts. Just have to take into consideration rising utilities, car running costs, food, maybe a little child care in the next 2 - 3 years.

Price still not agreed on the property, but i've told him my limit price based on the figures above. The cost is about 9% below asking price when you take into account my demand of seller pays stamp duty.

Fingers crossed. (hoping the BOE up the rate again tomorrow to strengthen my mortgage agreed position)