What percentage of salary is your mortgage?

Jon_B_2

Our new house means our mortgage will be 26% of our net £3235 income.

That said our current rent is 24% and we are buying a much bigger house.

Based on what I know I would still be comfortable to pay if rates were to go somewhat higher I think a max of 40% of our current income would be where I would start to sweat. So in that case at current rates I would probably chicken out of a 35% mortgage to income ratio given the impact of rate increases in the future.

gazfocus

Our mortgage is about 38% of my net income. My wife is due to start university in September and will be getting a student grant to pay towards living costs so it will the drop to about 26% of our joint income.

We have set all of our household bills to be paid within the first week of the month, so once week 1 is over with, we can relax a bit, knowing it's only food and petrol left to pay for.

LottieLou

Soon to be 25%, but to be honest I thought it was much more than that! That feels very manageable now.

The rent we are paying is currently 18% of our combined wages, although the greedy landlord is increasing the rent to more than our mortgage for the next people. An increase of 20% on rent in 12 months, with no improvements made!:eek:

Maelwys

Dollyrockerz wrote: »

So, if I may, what percentage do people pay for their mortgage and what is a 'comfortable' percentage ?

I'm not sure if "percentage of pay" is the right thing to go by, perhaps "percentage of pay after tax and all other living expenses"? Someone earning £500 a month is going to struggle to pay a mortgage of £250, but Someone earning £5000 a month will have a fairly comfortable buffer left after paying £2500...

Personally, I take home around 2k a month after tax and pension contributions and my (fixed) Mortgage payments are about £450 a month, so that'd make mine about 22.5% of my take-home earnings (and come August, I'll be able to lower that to £385-400, which would make it a little below 20%).

The crucial thing for me however is that after all my bills and outgoings I usually end up with a surplus of around £400-£600 a month (which currently gets put into a savings account, and in future might be used to overpay the mortgage), so I have a nice buffer in case mortgage rates increase or something unexpected crops up.

lush_walrus

Our mortgage is 5%, but as our childcare is £2500 a month and 23% our other fixed out goings / percentages are far higher than the mortgage...

Dandytf

What's a percentage of £1200 wages 343 mtg or 400 mtg (with overpayments I've been paying)

PrincessLou

Dandytf wrote: »

What's a percentage of £1200 wages 343 mtg or 400 mtg (with overpayments I've been paying)

£400 out of £1200 is 33%

Contemptuous

Our mortgage is 25% of our household income.

amnblog

Opinion wrote: »

"Unofficial income"?

I assume that refers to tax evasion.

An extra £200 a month the rest of us have to find.

Savingdad

Mine is £700 out of take home of £1600 so pushing 50% however my minimum payment is £360 but I'm comfortable with a 100% overpayment each month and should reduce my term for the remaining 16 years to about 6.
Its about what you can afford and its a choice at the moment my wife doesn't work so we don't pay childcare, once he goes to school she can get a part time something and the % will drop even further.