% of salary on mortgage payment

Taggo

Yes, this will be my third house purchase so I've hopefully ironed out and prepared for the unexpecteds, the purchase will be fine. Just wondering folks take on what portion of salary they are happy to sacrifice for their home.

I suppose it's all relative but just interested. Cheers

ThePants999

I'd go for it if the numbers add up - and then try to save a significant emergency buffer while your partner's in work.

DD265

We agreed on 21% of our combined take home (the cash value was a round number!), though OH would've preferred lower and I would've been comfortable going higher.

Thanks to a base rate rise in between AIP and application, our repayments will be a little higher and we're going to round up to a number that's equivalent to 25% of our take home each month.

If I look at your combined incomes then 33% seems OK (we'd like to live on just my income ideally, so 36% mortgage, but we're a way off that) but 50% of just yours feels a bit steep. I think you'd need to consider if your partner did stop work for another child, what costs would go up and what would go down?

pinknsparkly

Personally, we opted for the cheapest possible house and wouldn't want to be spending any more than 1/3rd household income. Although we currently both work, we are aiming for 1/3rd of the lowest income (we earn almost exactly the same as each other though!) as we are hoping to have children and this will allow us the financial breathing room for childcare costs or to become a single income household (with a stay at home parent).

blues

Wow that sounds tight to me. Our mortgage is 20% of take home pay. Personally I wouldn't go for 50%-it's risky.

pennystretcher

Generic guidance is 1/3 of salary to mortgage, 1/3 on other bills, 1/3 for living/savings.

I have been in the situation where my mortgages (two of them) took up 50% of my income and have no wish to be in that position ever again as any small change in interest rates could have potentially made me default on bills.

However, if you are sensible with your money and can and WILL OP mortgage, you can reduce the mortgage quickly, you just need to be very disciplined to do this. If you can't plan and stick to budget, do not commit to more than you sensibly should.