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AIBU?

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Original poster

To ask what your mortgage debt is proportion to your assets

76 replies

Bearlionfalcon · 09/09/2025 15:14

For example our ratio is 3.5 assets to 1 debt.
ie. We own a house worth 700k but we have 200k mortgage debt left to pay off.

Our mortgage cost is currently about 25-30 per cent of our income. Expected to rise when we renew our mortgage but thankfully we have another year.

I think this is a reasonably fortunate financial position to be in, my DH thinks we have a mountain of debt and we’re about to be in terrible trouble when rates rise etc so should put all our money/ efforts/ savings into reducing that debt.

Who is right??!

YANBU - me
YABU - DH

OP posts:
ScholesPanda · 09/09/2025 15:26

Someone more clever than me will be along to give you better advice, but my understanding would be your LTV/ asset to debt ratio is really healthy, if you have some term to go.

But I thought having housing costs at 25-30% of income and about 50% on bills in total was a rule of thumb. So if new rates take you above those ratios then you'll presumably have to cut back on other spending or on saving. Could you overpay now so that you keep the same ratio going forward?

I think your DH is unreasonable to really panic, but if you can afford to overpay I'd have thought you'd be in a more comfortable long-term position.