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

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Comments

  • SternMusik
    SternMusik Posts: 352 Forumite
    pinkteapot wrote: »
    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.

    I agree. I have 900 left over after pension contribution, mortgage, groceries and all essential household bills (council tax, gas/electric, water, home insurance, TV license etc). Not great, but this is my first home, and houses are expensive round here.
  • de1amo
    de1amo Posts: 3,401 Forumite
    1,000 Posts Combo Breaker
    5pc for me--over 2 family homes.
    mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Earn gross £300 a week £15,600 a year borrowed 3.75x income. Interest rate is now 4% so paying £45 a week interest only on £58,500 mortgage. Take home pay is £253 so the percentage is 17.8%.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • SternMusik
    SternMusik Posts: 352 Forumite
    Those on IO mortgages, what percentage of your take-home pay do you save/invest to pay off the loan at the end?
  • girl_withno_name
    girl_withno_name Posts: 1,530 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I think we're gonna be looking at ~15% (leaving about 2900 between us)
    You were only killing time and it'll kill you right back
  • Old_Git
    Old_Git Posts: 4,751 Forumite
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Cashback Cashier
    SternMusik wrote: »
    Those on IO mortgages, what percentage of your take-home pay do you save/invest to pay off the loan at the end?
    My mortgage is interest only 0.68% or .£27.99 per month .I could clear it now due to inheritance but the interest on my isa will pay more than the mortgage rate .
    "Do not regret growing older, it's a privilege denied to many"
  • SternMusik
    SternMusik Posts: 352 Forumite
    Old_Git wrote: »
    My mortgage is interest only 0.68% or .£27.99 per month .I could clear it now due to inheritance but the interest on my isa will pay more than the mortgage rate .

    Wow, what an amazing interest rate. If only new borrowers in 2012 could access those rates! I'd have an IO mortgage as well with a rate like this.
  • de1amo
    de1amo Posts: 3,401 Forumite
    1,000 Posts Combo Breaker
    Mine is İO but my LTV is something like 10pc and if push came to shove i could rent one of the homes out.--my rate is 2pc
    mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.
  • andy.m_2
    andy.m_2 Posts: 1,521 Forumite
    We are presently upsizing and I was concerned about this very factor.

    Roughly we are at 20% of take home and that sits comfortably with me.
    Sealed pot challange no: 339
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Paying about 50% of my take home pay but want to be Mortgage Free in 2 years so working my butt off.
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