How much house would you buy?

AdmanPea

I’m interested in people’s takes on what level of investment they’d make in their home? 

As a multiple of your salary or a percentage of your take home pay, what price of property do you think is sensible as a maximum? 

hippocrates1

Property total 4.6x income. Mortgage 4.2x income. But I expect my salary to increase year on year so I thought it was best to stretch myself to a ten year home. Rather than move in five years. 

Sunsaru

I wanted to my mortgage to be slight more per month than what I pay in rent leaving me with plenty of disposable income once all bills are paid accounted for so I can save and also overpay. I set my max based on that.
My property was 3.6x my income and mortgage is 2.9x.  I have no plans to move as it's just me and my daughter with room for someone special in the future.

Edit: My Mortgage is 21% of my wage

katkatmachine

Our house is 4.5x our combined annual income, the mortgage that we pay per month is 30% of our monthly salary.

Redwino222

I am currently buying what will be my third home.  I have built up around £150k in equity and am taking out a mortgage 2.5 times my salary.  I am single.  It feels okay but I wouldn’t want to stretch much more

getmore4less

You can't use numbers  like multiple or % of salary as they are not linier.

starting with a couple of net income 
someone on £25k spending £25k has choices to make on how much to spend on accommodation, 
someone on £50k  living on £25k  can throw 50%/£25k up front before considering the £25k

That £25k  can support a £440k mortgage over 30 years at 3%

that's 6.2 x gross(£71k) before they even think about using some of their other £25k for accommodation.

 

lookstraightahead

Although property over time is a good investment o also think life happens where property ownership can hold you back, so i thickness it's always wise to have contingencies.

lookstraightahead

We have a very small mortgage as we have only have two part time permanent incomes and 5 other income streams that can't be used very easily in the mortgage process (although I think we're less of a risk that two main incomes). Our mortgage payment is about 15% of our actual actual income. 

RelievedSheff

Our mortgage payment is 25% of our take home pay.

SameOldRoundabout

Our mortgage is 21% of our take home pay. We have always chosen to be cautious and ensure we could always afford payments should rates rise/a personal financial catastrophe happen so have always erred on the side of caution and bought away from the top end of what we could borrow. 

MovingForwards

I was on under £21k when I purchased my home last year. Paid 15% deposit and about 5% for legals, broker, mortgage arrangement fee etc.

Borrowed 3.3x my salary and my mortgage (sub-prime) is just over 30% of my monthly income, I also overpay my mortgage by 0.50% of my then income.

When looking for a home I didn't want to borrow the maximum I could, due to wanting flexibility with my life / future eg reduce hours or change jobs to a lower paid one.

My now income is about 2.5% more than when the mortgage started, savings are increasing each month, mortgage going down quicker and I pay into a SIPP. I'm on schedule for being mortgage free in 10 years from when it started.