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What proportion of take-home pay do people spend on mortgage costs?

rossyl
rossyl Posts: 181 Forumite
in House buying, renting & selling
Hi,

I ask as I am about to embark on the purchase of a family home, that's not cheap! The result is to more than double my mortgage costs. We've done an extensive spreadsheet detailing where all our money goes to work out if it is affordable.

So then what is the rough proportion people spend? One fifth, one quarter, one third, half, three quarters?

Cheers
R
Young homeowner...with a large mortgage
«13456

Comments

  • sujman
    sujman Posts: 571 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    52% in my case
  • rossyl
    rossyl Posts: 181 Forumite
    37%, on a 25 year mortgage at the start of the 25years.
    Young homeowner...with a large mortgage
  • DannyboyMidlands
    DannyboyMidlands Posts: 1,880 Forumite
    My OH doesn't like to be "house rich" as she calls it. Ours is 10%.
  • SternMusik
    SternMusik Posts: 352 Forumite
    It is 33% for me.
  • londonlydia
    londonlydia Posts: 428 Forumite
    Eighth Anniversary 100 Posts Combo Breaker
    ....well we're still looking, but estimate it will be 26-28% for us.
  • rossyl
    rossyl Posts: 181 Forumite
    This is making me feel much better, except for you DannyBoyMidlands :tongue:
    Young homeowner...with a large mortgage
  • big5
    big5 Posts: 370 Forumite
    Ours is 25%.
  • DannyboyMidlands
    DannyboyMidlands Posts: 1,880 Forumite
    rossyl wrote: »
    This is making me feel much better, except for you DannyBoyMidlands :tongue:

    But your house is probably nicer. Horses for courses etc. etc.
  • pinkteapot
    pinkteapot Posts: 8,044 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Similar to DannyBoy, 12% for us. Bliss! Could have got a bigger/posher house but wanted the financial flexibility that ours gives us.

    When I bought my first place - just over 40%. Not fun. :(

    The absolute amounts are almost more important than the percentages though. Spending 25% is pretty different if you're talking about a £250 mortgage on £1k take-home pay, vs a £1,500 mortgage on £6k take-home pay. £ amount left over each month after mortgage, other household bills and food is the main thing to look at.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    pinkteapot wrote: »
    Similar to DannyBoy, 12% for us. Bliss! Could have got a bigger/posher house but wanted the financial flexibility that ours gives us.

    When I bought my first place - just over 40%. Not fun. :(

    The absolute amounts are almost more important than the percentages though. Spending 25% is pretty different if you're talking about a £250 mortgage on £1k take-home pay, vs a £1,500 mortgage on £6k take-home pay. £ amount left over each month after mortgage, other household bills and food is the main thing to look at.

    Yes exactly. Mines going to be 42%.... but my travel costs come out of my payslip (season ticket loan) and I then have £900 left over, to pay bills and food.
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