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

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Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    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?
    Nothing...The sale of the property will pay the mortgage off and I will downsize to a smaller property with the profit/capital gain.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • pimento
    pimento Posts: 6,243 Forumite
    Part of the Furniture 1,000 Posts
    It's 19% for me.
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
  • sammyjammy
    sammyjammy Posts: 7,995 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Currently 26% but have temporarily extended the term back to 16 years, previously it was just under 50%.

    It's all relative to your level of income and your other outgoings though, also very different if your using a single income!
    "You've been reading SOS when it's just your clock reading 5:05 "
  • michelle2008
    michelle2008 Posts: 601 Forumite
    Just under 30% -but am overpaying which pushes it up to 41%.
  • Bluemeanie_2
    Bluemeanie_2 Posts: 1,076 Forumite
    14.25% if we only paid out "standard" payment. However we choose to overpay to make it 40% of take home pay. (Mortgage is our only debt)
    I'm never offended by debate & opinions. As a wise man called Voltaire once said, "I disagree with what you say, but will defend until death your right to say it."
    Mortgage is my only debt - Original mortgage - January 2008 = £88,400, March 2014 = £47,000 Chipping away slowly! Now saving to move.
  • de1amo
    de1amo Posts: 3,401 Forumite
    1,000 Posts Combo Breaker
    edited 25 May 2012 at 7:32AM
    İs this the percentage of 1 wage or total household income---i didnt include my wife's income when i calculated it.--if so my mortgage payment is 2,5pc of our income.---its our only debt and we have savings.
    mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.
  • tru
    tru Posts: 9,138 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    Repayment mortgage, 15.12%
    Bulletproof
  • guesswho2000
    guesswho2000 Posts: 1,703 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Uniform Washer
    edited 25 May 2012 at 8:25AM
    25% of joint income, repayment. The key is to be able to survive on one income, in case the worst happens.

    EDIT: Overpayment bumps that up to 33%
  • Gra76
    Gra76 Posts: 804 Forumite
    Part of the Furniture Combo Breaker Mortgage-free Glee!
    Currently we're mortgage free (which is nice), but we're planning a move and both myself and the missus have differing ideas of what we 'should' be paying towards a mortgage.

    My view is that a house that ticks all the boxes doesn't have to cost a fortune. My view is that 10% of our combined current takehome would leave us with a ton of money left to spend on family holdays and get us a nice house.

    Her view is that money isn't the end of the world. She'd rather have the nicest house and pay more. What's her upper limit? God knows but based on the houses she keeps coming up with on Righmove it's 30%+.
  • de1amo
    de1amo Posts: 3,401 Forumite
    1,000 Posts Combo Breaker
    The old maximum used to be 3,5 times main wage and 1 time the second- its what i kept to when assessing what i could afford and still live!

    Now the banks are deciding what you can have not the buyers!
    mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.
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