What % of your income would you commit?

Clairy

What % of your montly income would you feel comfortable in committing to a mortgage?

My gut feeling is about 25%, but I'm interested to know what level of risk others are prepared to take :beer:

roswell

Currently mine is 10 % of my monthly take home after tax NI / Pension.

But I would say 25 - 30 % should be safe 50% or above its to much in my books.

smallblueplanet

I'd be interested to know what value that % is in £sterling per month?

waterbaby

I don't think of it like that. I work out what I need for non-mortgage spending and the rest goes on the mortgage. As our salaries rise, we put all of the increase into the mortgage, so the % is not constant.

However as you are interested, the contractual payment is 27% of our (take-home) income, and we also pay 25% as an overpayment, so 52% in total goes on the mortgage.

If you are asking would i commit 52%, well that would depend on how much I earnt. If i earnt £100k after tax (:rotfl: ) then I would feel comfortable committing far more than 52%, because I live happily on £15k.

densol_2

I pay around 50% of my income on my own ( as mortgage in my name only ) but when my husband 2 b's income is factored in it is around 33% of our income.

Not good but it is a brand new - hopefully in a couple of years time it will seem less!

*Louise*

Our mortgage is around 20% of our monthly income.

Would go up to 30% if necessary

ailuro2

It used to be a general recommendation to people buying or renting their first home not to budget for paying out any more than 25% on their mortgage or rent, as that would keep them within a liveable budget with enough left over to pay the other bills, ahve the odd night out etc.

Halcyon days they were...:rolleyes:

lilyann1

Ours is going to be 33% of our take home income.
its a mater of working out what other spending you have and what is necessary and what isn't,because when you move you'll also have unaccounted for expenses,so you need to ensure you have a fund for emergencies.

PoorDave

ailuro2 wrote:

It used to be a general recommendation to people buying or renting their first home not to budget for paying out any more than 25% on their mortgage or rent, as that would keep them within a liveable budget with enough left over to pay the other bills, ahve the odd night out etc.

Halcyon days they were...:rolleyes:

I thought it was 33% or a third that was recommended. Depends on who you talk to/listen to, i suppose!

dunstonh

You also have to factor in that interest rate rises will occur (one almost certainly going to hit in November). So, if rates increase by 50% of what they are now (which is very possible), then someone that is at 33% whilst rates are low is going to be at nearly 50% if rates increase half as much again.

Going to 33% of income now is a risk. Although if you have a modest lifestyle and no other debts, you could get away with it.

Poppy9

On just my part-time salary it's 10% on combined salary with OH about 4%. 3 years time and we are mortgage free hopefully!