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Debate House Prices
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What proportion of Net income goes on Housing costs
Batchy
Posts: 1,632 Forumite
Hi Guys, Gals
Just wondering about to buy a house and wondered where abouts the norm lies
What percentage of your NET income after tax is gone on :-
1) Mortgage repayment on its own for your residential home
2) all the costs of housing including the above mortgage repayment elect rates water tv, sky, bb, insurances, etc
Im personally around:-
32% Mortgage costs (repayment fixed for 2 years)
48% Total Costs (inc mortgage elect rates water tv, sky, bb, insurances, etc)
Leave a bit left, hopefully a payrise or two before rate is reset to SVR.
Thanks feel free to participate if you want too.
Just wondering about to buy a house and wondered where abouts the norm lies
What percentage of your NET income after tax is gone on :-
1) Mortgage repayment on its own for your residential home
2) all the costs of housing including the above mortgage repayment elect rates water tv, sky, bb, insurances, etc
Im personally around:-
32% Mortgage costs (repayment fixed for 2 years)
48% Total Costs (inc mortgage elect rates water tv, sky, bb, insurances, etc)
Leave a bit left, hopefully a payrise or two before rate is reset to SVR.
Thanks feel free to participate if you want too.
Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)
0
Comments
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Hi Guys, Gals
Just wondering about to buy a house and wondered where abouts the norm lies
What percentage of your NET income after tax is gone on :-
1) Mortgage repayment on its own for your residential home
2) all the costs of housing including the above mortgage repayment elect rates water tv, sky, bb, insurances, etc
Im personally around:-
32% Mortgage costs (repayment fixed for 2 years)
48% Total Costs (inc mortgage elect rates water tv, sky, bb, insurances, etc)
Leave a bit left, hopefully a payrise or two before rate is reset to SVR.
Thanks feel free to participate if you want too.
Oddly about 48%.
It used to be higher. A lot higher. I decided at the time that the point you're currently at was the worst it would ever be and that costs would go down and income would rise and I was right.
This is why I stretched about as far as I could at that time.0 -
Mortgage is 17.2% of net income
Adding Water, C.Tax, Life insurance, Phone, TV Licence, Internet.
It goes up to up to 23%This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
0% mortgage costs
20% of net income for household expense costs0 -
Everyone %ages are higher when they've just bought. Mine were similar to Batchy's 3-4 years ago.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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If you are inferring to rates, my rate has only dropped 0.35% since I took the mortgage 4 years ago.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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Income varies, resulting in mortgage accounting for between about 15-30%.
all the other gubbins comes to between 7.5-15%.0 -
Chaos_A.D. wrote: »I'm sure that maybe true especially at this time, I'd be surprised if that's the case in 3-4 years time. I guess time will once again lay it all before us.
Other things being equal, do you mean that you expect people who are buying now to be poorer in four years time?0 -
47% of mine and the OH combined wage. We don't have Sky but it does include internet, Love Film and Xbox subscriptions and his life insurance.
The mortgage is just 16% though!0 -
No mortage.
15% for other house bills.
The car costs me more!0 -
Chaos_A.D. wrote: »Of course IR's are to stay low for some time, however it's unlikely to be more than a few years, have you factored in perhaps a couple of % on top of what you're paying now as the 'normal' and maybe double your current rate for more extreme times, as there is bound to be over a 25 year period ?
Those percentages you give look to be fairly hefty given where IR's are now.
That would be 2.9% in extreme times :eek:'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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