Mortgage as proportion of net income..?

C_Mababejive

I think this has been asked before but cant find it.

What proportion of net monthly income is your mortgage payment?

I am particularly interested in homes where there is only a sole earner be they partnered or living alone.

Obviously its personal to ask peoples gross income but if anyone wants to quote it or thereabouts,it would be helpful...ta

holly_hobby

Broad industry in my experience (inc my involvement in investigation of mis-sold mges) is circa 35% of net income (which should also include the monthly payment into a suitable repayment vehicle or DTA) - this is a very general starting point, further to which your own personal circs will be taken into account, such as on going commitments (which will prevail following completion), general monthly housekeeping, (life & income) protection, pension commitments etc .. plus the no of any dependants and their ages.

Of course each lenderr has their own underwriting matrix and criteria that they may apply - some are more generous with affordability than others who take a more conservative approach (esp when the LTV starts creeping up ).

Hope this helps

Holly

seafarers_wife

we are 13% joint income and 17% OH's sole income on mortgage payments each month. we did only take the mortgage out based on his income though to ensure we could afford it when i give up work to have kids which is sooner rather than later. his salary is £3300 a month net (doesnt pay tax) and mine is around a grand a month net

LilacPixie

Well currently mortgage is 32% of my sole PAYE income (my husband does earn though but less than I do). With my 1st mortgage in 2003 it was roughly 18% and I was living alone. At that point my monthly take home after pension was 1111 and mortgage payment was pennies under £200

holly_hobby

seafarers_wife wrote: »

. his salary is £3300 a month net (doesnt pay tax)

Good grief .. how does he manage to avoid paying tax ... ?? (can I have his accountants phone no too ... ??)

Holly

Brodiebobs

holly_hobby wrote: »

Good grief .. how does he manage to avoid paying tax ... ?? (can I have his accountants phone no too ... ??)

Holly

i *think* from reading other posts he works mainly at sea for most of the year so tax exempt.

edited to say look at her user name, i only realised that after i'd commented :rotfl:

roonaldo

actually some lenders work out mortgage affordability on this basis (instead of income multiples) and usually has to be below around 40-50% for them to lend.

WestonDave

13% of my gross - OH hasn't generally worked - now does some low paid work for a charity. We're 4 years into the mortgage although its pretty much been that level since the start

holly_hobby

Brodiebobs wrote: »

i *think* from reading other posts he works mainly at sea for most of the year so tax exempt.

edited to say look at her user name, i only realised that after i'd commented :rotfl:

Ah .... I see (said the blind man !!) ... he must spend a lot of time away, to qualify for such a large Seafarer's Earnings Deduction on his earnings ... think I'll buy Hubby a pair of waterwings and send him on his way ... :j (I know I can be naughty !!)

Holly

mustang1

Mine is 43% of my net salary - I'm a sole earner but have a lodger for extra income (with the rental income it would be 38% of income)

hcb42

Approx 22% of joint income