What % Mortgage to Income

tomstickland

I'm currently paying 19% of my take home on mortgage and 3% on service charges etc. I will be overpaying as soon as I've built my savings back up to the desired level.

Xbigman

I currently pay around 20%. I could go to 60% but there would be nothing in reserve.

In the early 90's, before the crash, 45% was common and caused a lot of people trouble. So I agree that in general 33% should be the norm.
Regards



X

jamminjamaica

currently paying 14.31% of joint income.

my new house and mortgage will be 29% of our joint income

blissfulbabe

Excuse me being an ignoramus but are we talking about gross or net wages?

tomstickland

Don't know; I used mortgage payment over net monthly income (excluding money courtesy of gambling loophole exploitation)

leftieM

We're going from 30% to 41%. I must admit that short term we're putting the money we currently put into savings towards a mortgage.
We became very frugal when I left my job 18 months ago and managed 'old style' for a few months so we know we can tighten our belts again if necessary and we have a savings cushion.

Malky

Before we moved earlier this year our mortgage was approx 10% of our joint take home pay. When we moved, it jumped up to 23%.

BrunoM

Presumably the % "ought" to be lower for couples vs single people anyway, (and lower again if there are kids), as anything left over is then used for bills and living costs for x many people.

dougk_2

BrunoM wrote:

Presumably the % "ought" to be lower for couples vs single people anyway, (and lower again if there are kids), as anything left over is then used for bills and living costs for x many people.

I disagree to a certain extent. As a couple your bills are not double what a single person has so you have more disposable income , so therefore a higher percentage is eaiser as you are sharing many things. This is if you are both working and decent wages - If only one is , or the second income is very low then I agree and obviously yes the % needs to be lower.

BrunoM

OK - the % can be higher the higher total income is, and the % can be lower the more people are involved for bills and living expenses. Both statements are true and independent of each other!