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Rent/Mortgage - What % of take home income do you spend?

(78 Posts)
escape Thu 01-Aug-13 22:45:59

I am driving myself crazy deciding weather to rent a house that would cost £400 pcm more than I pay currently.
I believe can afford it, and for various reasons it will make me so mch more happier ( lifestyle/sanity!)

Can I ask what % of your households take home income do you spend on rent or mortgage - I want to know if I am being frivolous even contemplating this... TIA.

LadyLapsang Fri 02-Aug-13 14:19:10

3%, but we have enough savings to pay it off if we wanted - offset is great for us with interest rates so poor. DH would like to pay it off but I want to be able to take money out for a deposit for DS if he would like one.

Having said that, however, when we started out there were some months when we probably paid about 45%, so it can get much better. Also we both work full time now - I didn't anticipate I would return to full time work when DS started uni, but things are so uncertain and the option to increase hours, get promoted etc. may not have come along again so I think it's best to take the opportunities when they come along.

Like Viva, we could have bought a much bigger house but we didn't, partly because we needed to pay school fees. Now the school fees are finished, we feel a lot better off and can save more.

LadyKooKoo Fri 02-Aug-13 14:30:33

It would be 19% but we are overpaying at the moment so 28%.

LazyMonkeyButler Fri 02-Aug-13 14:52:00

Surely it depends on what your monthly income is, as to what % is affordable?

If you had a £500 income then rent of £250 would be too high, as it is fairly impossible to live on £250 a month for everything else.

However, if your income was £10,000 a month then you could probably pay out 60-70% and still afford to live.

It was 25% but I've just stopped work so it's now 40%. It makes me very nervous but none of us were happy with DD in nursery all the time.

GetStuffezd Fri 02-Aug-13 14:55:35

about 30%

YoniBottsBumgina Fri 02-Aug-13 15:15:36

Of my wages, over 100%

Including tax credits, housing benefit, etc it's around 45%.

YoniBottsBumgina Fri 02-Aug-13 15:17:10

If I don't take child benefit into account, it's almost 50%! Surprised so many people pay such a small percentage TBH.

PattyPenguin Fri 02-Aug-13 20:17:54

50%. <moan> Husband made redundant two years ago, still not got another proper job, just bits here and there. One kid at uni, one about to go to FE college, which means will still cost money but not contribute. Am beyond stressed about it all. <moan over>

ReluctantBeing Fri 02-Aug-13 20:18:59

Our rent is a third of our income. We save £30 a month ATM.

Rtfairy Fri 02-Aug-13 20:35:18

About 24% of our joint income which is enough I think

scarlettsmummy2 Fri 02-Aug-13 21:27:06

10%

Runningchick123 Sat 03-Aug-13 07:26:19

26% which is way more than we would like, but we have whatbwe hope is our forever home so it is worth it in the long run.

Mum2Fergus Sat 03-Aug-13 09:44:53

19%

Tasmania Mon 05-Aug-13 00:15:31

Currently renting. About 17%. Will soon be buying though, and it would then go up to 30%...

Mendi Mon 05-Aug-13 07:37:26

OP I am about to move to a rented house where the rent will be 40% of my net income, as opposed to where I live now which is more like 15%. I am really anxious about it but like you, the 2 houses are incomparable and I have to move, so I'm trying to justify it on the basis of all the good reasons and plan to economise where I can.

myron Tue 06-Aug-13 15:23:23

25%

Viviennemary Tue 06-Aug-13 15:31:35

I don't think the percentage thing is a good yardstick. Because if somebody has a higher salary then what they have left after the rent/mortgage has been paid will be more than the person with the lower salary. So they could make cuts if things got tight.

TheSmallPrint Tue 06-Aug-13 15:36:23

about 35%

Tasmania Tue 06-Aug-13 22:07:26

Viviennemary Most people live within their means (to some extent). A wealthier person will often buy/rent a more expensive house/flat, so will have more to pay, and the proportion may remain the same.

Only very, very wealthy (we're talking millions) people won't spend much proportionally because there's a limit as to how much houses can cost, and they may be able to buy them outright...

emma16 Tue 06-Aug-13 22:12:43

15%

peggyundercrackers Tue 06-Aug-13 22:21:22

our mortgage is about 11% of our income

amothersplaceisinthewrong Tue 06-Aug-13 22:22:23

0%, we paid our mortgage off six years ago.

EeyoreIsh Tue 06-Aug-13 22:23:03

25%.

titchy Tue 06-Aug-13 22:39:34

About 60% <gulp>

Neither of our salaries on their own covers the mortgage let alone the bills. Not a good position to be in but we have a lot of equity which we wouldn't have had if we didn't stretch ourselves to extend the house.

We just about manage.

countrymummy13 Wed 07-Aug-13 08:37:46

14%

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