What percentage of salary is your mortgage?

chelseablue

I'm in Berkshire

ellie27

Ours is 9% of our joint net income.

Our childcare costs are 15%

35% seems rather high if your bills/council tax/groceries/insurance/cars etc are ontop of that.

martinsurrey

ellie27 wrote: »

Ours is 9% of our joint net income.

Our childcare costs are 15%

35% seems rather high if your bills/council tax/groceries/insurance/cars etc are ontop of that.

35% is relative.

Spending 35% of a £100k net income leaves £65k for food, council tax and bills, over a grand a week, which is plenty.

Spending 35% of a £15k net income leaves £9750 or £187 a week, which isn't a lot for everything else.

OP, I would be less concerned about the %, and more concerned about two things

1) Quality of life. Can you afford 35% and still do the things you want to do? (if not you'll resent the house while you pass up opportunities)

2) Financial shock proof. Could you afford to take a pay cut/lose a job/have an unexpected expense (child/car/fire), this can be mitigated by savings. (if not your opening yourself up to a lot of stress and potential disaster)

if you can satisfy both of the above, 35% shouldn't be a worry.

Paully232000

I would agree on it is more important to look at what you have left after you have paid your mortgage, and everything else rather than what percentage of your salary is your mortgage payment.

More important to add up what everything that a house will cost, bills included and see what is left for luxuries, spending, saving.
You could be spending 10%, 20%. 30% on mortgage, but then if you add bills, childcare, everything else and this leaves you with nothing, then I would worry, if it leaves you with enough to spend as you wish then you are ok.

We spend 17% of take home pay on mortgage, and after everything such as bills etc is spent we have aprox 40% of take home available for spends/luxuries/savings.

Dollyrockerz

Thank you for your comments, I asked as a percentage as I didn't think people would want to give their actual figures on a public website but I totally get your point.

We take home roughly £2500 per month basic but OH has regular overtime (though not guaranteed) one dependent - age 2

Paully232000

Dollyrockerz wrote: »

Thank you for your comments, I asked as a percentage as I didn't think people would want to give their actual figures on a public website but I totally get your point.

We take home roughly £2500 per month basic but OH has regular overtime (though not guaranteed) one dependent - age 2

That is the killer sometimes when looking at %, as for instance we pay more in childcare per month that we do in mortgage payments. When our 2 yr old is in school, or in fact, gets to 3 our monthly bills will be a lot less.

dekoder

Ours is 35% but rent for similar place/location would be closer to 40%. It's not just the percentage that matters but other circumstances too.

HappyMJ

Mortgage/rent same thing I suppose. My official income is £595 and my rent is £475 so it's 80% of my gross taxable income. I also have unofficial income of around £1,000 per month so about 30% if I were to include that. I could pay more for a nicer place but I'm quite happy with that level of rent.

ACG

Mine is about 10% at the minute, although around 18 months ago it was probably about 50%...that was a hard time. It did not help that I had a credit card that war around 10-15%.

Opinion

HappyMJ wrote: »

Mortgage/rent same thing I suppose. My official income is £595 and my rent is £475 so it's 80% of my gross taxable income. I also have unofficial income of around £1,000 per month so about 30% if I were to include that. I could pay more for a nicer place but I'm quite happy with that level of rent.

"Unofficial income"?