% of net salary to be taken by mortgage

welshguy_456

Hello all, I just wanted to know roughly how much your mortgage takes up net salary? What is considered to be an affordable figure?

thanks in advance

Flightman_2

welshguy_456 wrote: »

Hello all, I just wanted to know roughly how much your mortgage takes up net salary? What is considered to be an affordable figure?

thanks in advance

Personally I'd never want to it be more than 30% of take home.

newgirly

Hi, I joined the mortage free wanabees last year and have been paying around 75% of my hubbys net pay on the mortage (with his say so of course!), but we are only commited to having to pay about 20% as we are on interest only and choose to overpay a lot.
I don't know what the usual percentage of net pay is sorry.

sarahevie

I personally think it's relative.

For example 50% of £1000 only leaves you with £500 for everything else.

Whereas 50% of £4000 leaves you with £2000 for everything - hardly comparable.

I have heard 30% bandied around before

Personally we are £1850 for £850 mortgage, appro 45% this is doable although not for everyone. Our budgets are tight.

FATBALLZ

I'm starting the process of a house purchase and the mortgage will take up 20% of our combined net pay. I'd feel uncomfortable with a higher figure in case one of us lost our jobs.

LillythePink

Ours is 31% of our net pay.

As someone said, it's relative though - our combined take home is by MSE standards very high and our mortgage is 1,667pm which then leaves a lot for bills and savings

we would be stuffed if I lost my job but we could just about manage if OH lost his as I am the main breadwinner

Engeroosi

we are roughly 25% of take home pay. Works well and we also overpay to become MF in the next 10 years.

GMS

The only amswer to this question is with the individual(s)

Lender affordability varies wildly from one to another so can they all be right? No is the answer. I have seen a 42k joint salary recently range from 62k max loan to 240k with a different lender.

As has been said a percentage is a blunt tool which will not work. You need to look at lifestyle, commitments and future plans as best you can.

Identical salaries and mortgages will not be identically managed by different people. Some people drink some dont. Some smoke some dont. Some like to eat out some dont.

Disposable income is what it is all about. Try to work out what you will spend each month. Allow a buffer zone for unforseen things and see if still affordable. Only the borrower truly knows what they can or cant afford

Fliss_M

Ours is currently 12% but is linked to base rate. When it was at its fixed rate it was 22%. Our childcare costs at 19% and debt repayments at 38% are much more! But when fixed it was managable so 20-30% I would think