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

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Comments

  • bee78
    bee78 Posts: 173 Forumite
    Hello, for us it is no more than 1/3 our joint income, another 1/3 goes towards our expenses including insurances. The last 3rd goes into savings/holidays/ and emergency funds.

    Hope that makes some sense.
  • staffie1
    staffie1 Posts: 1,967 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    I have a part interest, part repayment mortgage. Total monthly payment represents 16% of my net pay + 3.2% for the S&S ISA to pay off the capital on the IO element of the mortgage. But I also make variable overpayments on top of that.
    If you will the end, you must will the means.
  • Perelandra
    Perelandra Posts: 1,060 Forumite
    edited 25 May 2012 at 6:19PM
    I overpay a fair bit, so about 64%.

    EDIT:

    Reading through this thread, it's fascinating to see the number of responders who overpay their mortgages. I know MSE is hardly typical of the general population, but amongst my friends and colleagues I'm pretty sure I'm the *only* one who pays more than they have to.
  • gingeralan
    gingeralan Posts: 224 Forumite
    Eighth Anniversary 100 Posts Combo Breaker
    HappyMJ wrote: »
    Nothing...The sale of the property will pay the mortgage off and I will downsize to a smaller property with the profit/capital gain.

    Utter madness!
  • Mrs_Z
    Mrs_Z Posts: 1,128 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    Ours is around 5.5% but around 50% going into separate savings with a view off making a sizeable capital repayment at the right time.

    For those of you wondering, this situation is a direct result of living in a very modest house for the past 15 years and making do without all the 'nice to haves'. And our incomes increasing during the years - we're still in our first house. And no kids.
  • nearlyrich
    nearlyrich Posts: 13,698 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Hung up my suit!
    We are mortgage free but the most I/We have ever paid is about 15% of joint income...
    Free impartial debt advice from: National Debtline or Stepchange[/CENTER]
  • Bluemeanie_2
    Bluemeanie_2 Posts: 1,076 Forumite
    Perelandra wrote: »
    I overpay a fair bit, so about 64%.

    EDIT:

    Reading through this thread, it's fascinating to see the number of responders who overpay their mortgages. I know MSE is hardly typical of the general population, but amongst my friends and colleagues I'm pretty sure I'm the *only* one who pays more than they have to.

    I'm the only one I know of out of my group.
    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.
  • Southend1
    Southend1 Posts: 3,362 Forumite
    Ninth Anniversary 1,000 Posts Combo Breaker
    Mine is 37%. Would be 35% but I overpay a (very!) small amount each month. Will be increasing to about 42% in 2014 as
    my salary is being cut by 14%. May need to consider a lodger at that point if rates are much higher than they are presently.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    rossyl wrote: »
    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
    If it were only 1/5th, 1/4 or even 1/3rd we'd all have one.

    For many people, at the start of a mortgage it can be closer to half.
  • Wickedkitten
    Wickedkitten Posts: 1,868 Forumite
    Part of the Furniture Combo Breaker
    Even with an overpayment of about 75% it's 25% take home
    It's not easy having a good time. Even smiling makes my face ache.
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