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

fannyanna

Interesting thread.

We've just sold our place (was paying 10% of our combined take home pay on the mortgage) and we're in the process of upsizing (where we'll be paying about 20% of our combined take home pay on the mortgage).

lowlitmemory

Interesting thread. It'll be 37.2% of joint income for us. A bit of a financial stretch for us especially with a baby due in January, but doable for us I think. Bearing in mind too we're relatively young (23) so the hope is that our earnings will increase to make the purchase less of a stretch, and there's more than enough space for us to stay put for a good while if we want to. We both work in jobs where we should get a payrise every August and I intend to try and climb the career ladder too!

Ambro

Gra76 wrote: »

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%+.

My suggestion, if you really want to convince her, would be to point out that even at her property value you will not get the perfect house. Wouldn't it be better to live somewhere that ticks all the boxes but costs less for a few years to give you the real time and freedom to save, research and find the home which is right for you both without the stress that a higher financial burden can incur.

Don't make her feel that you see the higher expense as a frivilous waste as, judging from the stances you've put forward, this is likely to create stubborness. Agree that you want a wonderful home too but that you think a little less now provides an opportunity for much more in the future. You'll hopefully be living in a home together for the rest of your lives, what is a few years in the grand scheme of things?


As for the actual thread, my mortgage was approximately 25% of my take home at time of purchase two years ago. Now it is probably closer to 20% and I need to look more closely at overpaying.

mummyroysof3

22% of household incomings goes to our mortgage atm

gazfocus

If our mortgage ever gets approved, our mortgage/rent (shared ownership) will be between 31% and 35% of take home pay but we are going to aim to overpay as much as we're allowed to reduce the mortgage term significantly.

Devi

Singl ftb on a repayment mortgage - mine will be 45% but happy to be on the property ladder at long last as been renting for too many years.

it will be a struggle but worth it in the end, i hope!

D

Bufger

Joint income its 22%
On just my income it would be 39.5%

I wouldnt recommend going over 40% as you're into lifestyle change territory then.

gnimia

Repayment mortgage - single income
mortgage repayment is 36% of my basic income
But including lodger income, and big monthly overpayments, its 44%. I also put 18% of total income into savings
Its a big change as when i was renting, i was only paying 22% - but the difference was going into savings, so i dont really miss it!

kurgyb

We are currently at 10% about to be 40%

drummer_666

I'll be completing soon.

Mine will be 23%.
18.5% including lodgers money.

I'd need it be 18% or lower for me to not need a lodger.