What size mortgages do people have these days?

BusPass_2

Nil, zip, nowt.

Motivatedworkingmum

BusPass wrote: »

Nil, zip, nowt.

Now you're just showing off!:D

Motivatedworkingmum

To give you figures currently our mortgage payment is 26% (£707) of our monthly income which is approx £2700 per month, this is on a mortgage of £83k (house value £175k) with approx 14 years left to run. I am mid thirties and other half is early forties. We are thinking of a £175k mortgage (eeekkk) (house value £260k) over 24 years (the max term we can now take due to other half age) which would be approx £890 per month (32% of income) and LTV of 67%. I am part time due to young children so there is scope in the future to earn more. We are very good managing money (well we are now due to this site!). We understand that a % increase in rates, should/when they go up means an increase in payments, so could absorb a small increase. Mortgage would defo be fixed rate, so intially for two years be fine. We would plan to have a small cushion to take the unexpected bills. Scary manageble? or scary stupid?

haras_nosirrah

FOURCANDLES wrote: »

All I can say cheap houses around every where but Rural Shropshire it seems some of the prices mentioned on here wouldn't even get 3 beds most posts wouldn't buy ex local authority.

Live in the South and only about half an hour from Brighton (where I work)

we bought our 3 bed house in a lovely little village in feb 2010

Same price would buy you a two bed flat in Brighton hence why we commute

andthethreebears

as first time buyers our mortgage is roughly 1/3 of our take home salaries
85% ltv on a property just shy of £200k
if we stay here and pay off month by month we'll be mortgage free before we are 50!

we went for the biggest / nicest property we could realistically afford (whilst still maintaining a decent lifestyle) as we didn't want any pressure to move in the near future
if certainally not a 'forever' house - but we aren't likely to out grow it.

haras_nosirrah

Motivatedworkingmum wrote: »

To give you figures currently our mortgage payment is 26% (£707) of our monthly income which is approx £2700 per month, this is on a mortgage of £83k (house value £175k) with approx 14 years left to run. I am mid thirties and other half is early forties. We are thinking of a £175k mortgage (eeekkk) (house value £260k) over 24 years (the max term we can now take due to other half age) which would be approx £890 per month (32% of income) and LTV of 67%. I am part time due to young children so there is scope in the future to earn more. We are very good managing money (well we are now due to this site!). We understand that a % increase in rates, should/when they go up means an increase in payments, so could absorb a small increase. Mortgage would defo be fixed rate, so intially for two years be fine. We would plan to have a small cushion to take the unexpected bills. Scary manageble? or scary stupid?

I don't think we can answer that question for you

One thing that would make me say go for it is that the time you can pay it back is only going to get shorter (as limited to 24 now) so the bigger move in the future may be out of the question as it would be too expensive.

If the cheaper house will be good for the future then go for the smaller one. If the other house is the perfect house and the other house will be too small (and mean you have to move again) then I would stretch

I don't think you are looking at unobtainable but what I would do if I were you is base my payments at 6% and pay that (either into mortgage if it allows you to overpay/ underpay or into a saving account if it won't) that way if rates rise it won't be a shock to the system and you are building an emergency pot to take account of any future rate rises (or just paying off your mortgage nice and quickly). If it isn't affordable at 6% (1147 a month) then I would go for the smaller house as this is the average base rate and you could easily be on this or higher at the end of the two year product. Basing it on 32% of your income at a very low rate is not going to neccessarily mean it will be affordable in the future when the rates rise.

SJ1

It is always scary upping the mortgage as you just don't know how it will feel until you do it. So in the meantime while you are looking, and let's face it the property market I think will be pretty static in the next few months, why don't you siphon that extra money off somewhere each month and see how you would get on with the increased mortgage amount. When we increased our mortgage, we had a loan which had just ended and it meant we had an extra £500 a month which more than covered the difference. It was v good as we weren't used to having that dosh anyway. I think from listening to your posts that you want to go for the bigger house and if you are good at managing your money it may well be the right decision for you. Only you can make it though:)

My thoughts are

- think about a longer term fix than two years, you might get a better rate but you may also find yourself coming out of the fix at just the wrong time. Or maybe you have looked at that and it doesn't work on your numbers? In five years time you may well be back at work for much longer hours meaning any increase would be easier to cope with
- Would a one account work for you? This allows you to offset any savings etc with your mortgage amount driving down the cost of the mortgage each month.

SJ

losingpatience

We bought our first house 3 years ago and at the time our combined income was £34,000 mortgage was £110,000 taken out over 35 years :eek: and our payments were £580 per month so 25.74% of our take home pay. I was 22, OH 26

Now our combined income is £46,000 and our monthly payments are £650 per month as we're overpaying which is 22.37% of our take home pay. If the interest rates were to stay the same and we continue paying what we do then we now have 22 years left on our mortgage.

I guess we took a risk but for us it paid off as our joint income has gone up quite significantly in 3 years so we can now afford to overpay slightly on our mortgage. To be honest we expected all of this though as being young first time buyers we didn't really have any other option!

Malky

Motivatedworkingmum wrote: »

So if you don't mind me asking how much mortage do you have, over what term, whats your age and what is your mortage payment as a proportion of your monthly income?

£82K (£584 per month repayment @ 4.6%)
Less than 16 years
39 & 36
19% (joint income)

Have no idea if this is the norm. It can be daunting when moving up the ladder but for us it was plain sailing (thankfully)
Bought our first flat for £36K back in '94 when the max we could borrow was £33200. We managed to scrape together the £1800 as a deposit. Sold the flat in '06 for £85K but only made £35K profit as had a previous £17K secured loan against it. Despite our salaries being far greater when we moved, the max any bank offered us was £115K. This proved to be a good thing as we found a 3 bed semi for £105K and put down a deposit of £15K and squandered the other £20K :rotfl:. We had fun spending it but still have most things to show for it 4 years later. In reality, 2.5 x joint will have you living well within your means and let you live your life plus you should be well covered in the event of mortgage interest increases.

ceeforcat

Mortgage £154k at 1.5% (base plus 1 for life) - 34.4% of take home pay at £1100 per month (overpaying).

This after extension which cost £50k three years ago.