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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.

WhispersOfWickedness Fri 02-Aug-13 08:14:18

About 14% if my maths is not too shocking...

Pascha Fri 02-Aug-13 08:17:41

Approx 35%.

envy of 5%

Notyetthere Fri 02-Aug-13 08:19:56

Take home combined income £3k after tax, 40% towards mortgage payments. Our payments jumped from 30% when we bought our 1st home.

escape Fri 02-Aug-13 08:48:40

I agree that there is no formula - i think I was 'looking' for one!
I have savings fora deposit to buy - obviously that pot can never be too small and savings are a good thing.
Living here has become pretty unbearable for me, I have been actively looking for over a year - they are just SO far and few between what I live in now and the next 'step' up - detached/4 bed etc. This 400 pcm difference is the 'average' price for the upgraded space etc, and I do like this particular house.

Quite vulnerable these past couple of years and am sole earner/breadwinner - and petrified of making the wrong decision!

bigkidsdidit Fri 02-Aug-13 08:52:09

5%! Wow!

fanjoforthemammaries7850 Fri 02-Aug-13 08:55:30


OneLittleToddleTerror Fri 02-Aug-13 08:56:36

I'm exactly the same as sleephoglet! £4k net and £800 on mortgage. But we were paying £1k a month before at a higher rate.

Damnautocorrect Fri 02-Aug-13 08:58:42

50-75% oh is self employed so it varies

delilahbelle Fri 02-Aug-13 08:59:36

25%, but DH sometimes overpays as well.

HappyAsASandboy Fri 02-Aug-13 09:00:44

I don't think the percentage on rent/mortgage is really a goo guide to affordability. The evening standard had a great article on this on Wednesday; basically saying I you live outside of London, with half the rent, it actually costs you more because of travel. I think it makes more sense to look at the actual figures, or at least the percentage spent on non-discretionary things (rent/mortgage, Childcare, commuting).

For what it's worth, we pay about 20% of our combined net salary as mortgage. Childcare (part time places) is anoth 20% and travel is about 15%. That leaves us with very little at the end of the month once bills, food etc are paid.

McFluffy Fri 02-Aug-13 09:04:50

Message withdrawn at poster's request.

MrsPear Fri 02-Aug-13 09:09:04


No that is not typo - half our income goes on rent. Not entitled to benefits or social housing as DH earns too much. I live in a 3 bed masionette [sp] on a council estate in SE London with 2 children, DH and BIL.

Very envious of the 0 people.

GrumpyKat Fri 02-Aug-13 09:09:32

26% of a normal month (dh is self employed and it's variable). We save for one big holiday a year and live quite well the rest of the time. I wouldn't want to be paying anything higher than that, in fact we have abandoned our plans to move to a 'better area' as we sat down and worked it out and we would basically have to do nothing.

MrsPear Fri 02-Aug-13 09:13:21

Oh and an estate agent said that the formula they use when working out if someone can afford to rent a property is to divide pre tax / NI income by 3 then by 12. So if you earn 26k (which I believe is national average) you would be able to rent a property at 722.22 which would get a studio and if you are lucky a one bed flat round here.

madamginger Fri 02-Aug-13 09:14:24

20% but I only work part time. In a couple of years when ds2 starts school I'll go back to work full time and it will go down

Portofino Fri 02-Aug-13 09:16:53

25%. We rent and are planning to downsize and save money to buy some for retirement.

3boys3dogshelp Fri 02-Aug-13 09:19:51

About 25%, will jump to about 34% while I'm on mat leave - I'm dreading it.

Procrastinating Fri 02-Aug-13 09:20:13

25%. We recently moved, it was about 10% before. I work from home and for me the move up was scary but worth it. We now have plenty of space, a big garden and I have a study.

OneLittleToddleTerror Fri 02-Aug-13 09:23:20

3boys3dogshelp don't worry, maternity leave is temporary. Everyone goes through this. It gets very very tight towards the end!

bunjies Fri 02-Aug-13 09:25:02

I am sole earner and rent is 45% of net income sad.

IdaClair Fri 02-Aug-13 09:33:23

At the moment it is 74% of our earnings as DH is out of work.

VivaLeBeaver Fri 02-Aug-13 09:42:36

5% is nice but we live in a three bed semi as opposed to a bigger house like most of our friends.

I know a 3 bed semi is still nice and bigger than what some people have.

We could move to a bigger property and have more space but I prefer having more disposable income to be honest. And I always worry about redundancies, illness, etc.

specialsubject Fri 02-Aug-13 11:03:51

your landlord should be nervous if the rent is more than 40% or so of your income.

WhispersOfWickedness Fri 02-Aug-13 12:49:30

We are similar to Viva, ours is a small 3 bed semi that DH bought 10 years ago when single and on £15k less. We're in a rubbish area and the market is very slow, so will be hard to move once we're in a position to.

thehomesecretary Fri 02-Aug-13 12:58:36

DH is sole earner at the moment and our rent is 44% of net income. We seem to manage ok...

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