Monthly Mortgage Amount Advice

tightmike28

Hi Everyone

I am after a bit of advice, i am wanting to know what the maximum i should i pay out of my and my wifes net income on a mortgage per month.

We currently pick up around £3900 (net) per month between us and we both have fairly (as it can be) secure jobs (teacher, and work for a major water utilities company).

i have been looking at some websites saying that the norm is around 30% of the salary, which would be £1170 per month. Is this right or is this way to high.

We are both 29 so have many years ahead of work i am afraid to say.

Any advice would be appreciated

thanks

Mrs_Z

I think it depends of your attitude to risk and level of expectations. Are you happy to live in a more modest and cheaper house with less payments going towards mortgage?
We've always taken the conservative approach with a view that if one of us lost their job, we could still live and meet all our obligations with 1 salary. Has worked for us well so far.

MiniSis

Hi I don't know the answer (an also a teacher) mortgage would be 30% of my net monthly income (excluding tax credits) and they are currently assessing my affordability! (mortgage £599, net income £1800)

originalmiscellany

Another involved in education here..
Our approach has been to be conservative (echo Mrs Z) that we should be able to live off one salary at a push, which has meant not moving, and then being mortgage free but knowing that we are able to live within our means.

I guess aged 29, if I may be so bold, you might be thinking of babies wihch too will make a difference in terms of salaries.

michelle2008

It really depends on your lifestyle and other commitments - but 30% should be reasonable.

Stating the obvious - but remember interest rates are low at the minute so make sure you are comfortable with your loan at a higher rate.

Thrugelmir

Borrowing money costs money. So buy a home not an investment. You can always spend your savings later.

hcb42

Seems affordable to me