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Too much debt?

2

Comments

  • R_P_W
    R_P_W Posts: 1,528 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    FTB_Doll wrote: »
    2 adults mid/late 20's taking on £96k so £48k each :) happy with that x

    Remember it isn't 48k each. You are both borrowing 96k
  • w00519772
    w00519772 Posts: 1,297 Forumite
    R_P_W wrote: »
    Remember it isn't 48k each. You are both borrowing 96k

    I asked for the answers in that context, but good point anyway.
  • FTB_Doll
    FTB_Doll Posts: 206 Forumite
    R_P_W wrote: »
    Remember it isn't 48k each. You are both borrowing 96k
    I know but we always half things hahahaaha :) I know its a joint debt :p xx
  • urbanmyth
    urbanmyth Posts: 65 Forumite
    Not FT buyers but couple, mid 30s, 3.3 x combined salary = 330k. Seems comfortable for us.
  • gazzabboi
    gazzabboi Posts: 210 Forumite
    Ninth Anniversary 100 Posts Combo Breaker
    It depends on your budget and what you spend your money on. Your mortgage in general should be around 30-50% of your income.

    The more you earn the greater percentage of wage should go towards a mortgage.
    Ie, Income- £2k, food will be £500
    or Income- £5k, food will still be £500
  • Reue
    Reue Posts: 569 Forumite
    2x Mid-20s here. £190 mortgage
  • MaxTheCat
    MaxTheCat Posts: 73 Forumite
    gazzabboi wrote: »
    It depends on your budget and what you spend your money on. Your mortgage in general should be around 30-50% of your income.

    The more you earn the greater percentage of wage should go towards a mortgage.
    Ie, Income- £2k, food will be £500
    or Income- £5k, food will still be £500

    The more you earn the greater percentage of tax is taken as well though so your percentage disposable income is lower.

    In my case I'm borrowing 300k just over 2.5x my salary.
  • gazzabboi
    gazzabboi Posts: 210 Forumite
    Ninth Anniversary 100 Posts Combo Breaker
    MaxTheCat wrote: »
    The more you earn the greater percentage of tax is taken as well though so your percentage disposable income is lower.

    In my case I'm borrowing 300k just over 2.5x my salary.

    Are you really sure? Just because you pay more tax doesn't mean your disposable income is lower. You will be bringing more money home but paying the same basic bills as somebody who earns less.

    Has all that money you have gone to your head and made you forget basic maths?:cool:
  • Umistboy
    Umistboy Posts: 46 Forumite
    gazzabboi wrote: »
    Are you really sure? Just because you pay more tax doesn't mean your disposable income is lower. You will be bringing more money home but paying the same basic bills as somebody who earns less.

    Has all that money you have gone to your head and made you forget basic maths?:cool:

    Maybe it's actually YOU forgetting basic reading comprehension.

    He clearly states that a higher percentage tax payer will have a lower PERCENTAGE disposable income not a lower net disposable income.

    Be careful to read posts carefully as responding in such a way can make you look extremely silly when it is you that has made the error.
  • Umistboy
    Umistboy Posts: 46 Forumite
    Early 30's couple with baby.

    Joint income = £4000pm after tax (70k pa pre tax)
    Lovely big house = 160k
    Mortgage needed = 96k
    Monthly payment = £376 pm

    The joys of living in a cheaper part of the country enjoying national industry pay scales.

    OP: It all depends on situations. Find a good one and enjoy it. Don't worry about comparisons with others :)
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