Active discussions

Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Talk
Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Original poster

How much is your monthly mortgage payment?

249 replies

brokenthings · 04/02/2021 23:08

I'm just very intrigued! Mine is £800 a month.

OP posts:
Littlejayx · 05/02/2021 09:45

£440 a month!

I can’t imagine the house you could get for £1600 a month near me!

BigPaperBag · 05/02/2021 10:06

£749 but overpay by anything up to £1200 a month.

Dogonahottinroof · 05/02/2021 11:22

[quote gettingusedtothelimelight]@Dogonahottinroof

£4003? Is that a typo? If not your mortgage (and house) must be massive 😱[/quote]
No

It is £343,000 currently. Was £500 ish when we took it out. 15 year mortgage with about 10% overpayment

There is about £700,000 of equity in the house now.

It was about 25% of income (minus bonus/shares) but due to covid it is about 40%

I don't understand people who take out 35 year mortgages. We started with what we could afford to pay. When salaries went up we added in the automatic overpayment.

Interested in this thread?

Then you might like threads about this subject:

General money
MojoJojo71 · 05/02/2021 11:26

£522 which is roughly 25% of my take home pay from my main job but I have a second zero hours job which although not guaranteed I generally bring home about £400-500 a month so if I include that its about 20%

Aposterhasnoname · 05/02/2021 11:28

It was £780, but now it’s a big fat zero!

yankeedoodlecandy · 05/02/2021 11:28

£312

Babababababybelll · 05/02/2021 11:33

290 a month

Although it seems low , its all comparative to our income.

We try overpay. Sometimes its just rounded up to £300

Hopefully every little helps !

It would cost is £500 to rent a house the same size in our area so we are better off..... except we would probably be entitled to a bit of housing benefit if we rented

TheresALight · 05/02/2021 11:47

I don't understand people who take out 35 year mortgages. We started with what we could afford to pay.

We started with what we could afford to pay too but the bank decided that was too much and that we could only afford less, so we had to increase the mortgage term to accommodate the affordability that the bank set for us, hence a 35 year mortgage.

sunflowersandbuttercups · 05/02/2021 11:55

I don't understand people who take out 35 year mortgages. We started with what we could afford to pay. When salaries went up we added in the automatic overpayment.

Lots of people wouldn't be able to get a 20 year mortgage based on what they can afford, though. Some people are always going to be low earners and their only chance of buying a house is taking on a 35 year mortgage.

BernadetteRostankowskiWolowitz · 05/02/2021 11:59

We got a 35 year mortgage because we bought at 23yo. We couldn't have afforded to take out a 25y deal at the time and any property in our area - and we bought a tiny doer upper - would have been out of our price range with a 25y deal.

garden4569 · 05/02/2021 12:08

www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/

the above is a brilliant calc for showing how you can chip years off your mortgage via overpayments. I became obsessed with above calc and reducing the debt

BarbaraofSeville · 05/02/2021 12:10

Plus if you're buying in your 20s or 30s, you have 30-40 years of work ahead of you, so if you want or need to take longer to pay back a mortgage there's little reason not to, especially now that long term very low fixed rates are available, so it's not like it's even expensive to do so.

MrDarcysMa · 05/02/2021 12:12

I don't understand people who take out 35 year mortgages. We started with what we could afford to pay. When salaries went up we added in the automatic overpayment*.

This is a very weird comment. Why wouldn't you take out a longer term mortgage with smaller repayments if you're on a lower salary ?
If you're trying to buy in the south east on a lower salary you literally have no other option 🤷‍♀️

AnneElliott · 05/02/2021 12:13

£1800. Although we overpay each month on top. 5/6 years to go.

Juno231 · 05/02/2021 12:13

@Dogonahottinroof having a longer mortgage gives you the flexibility to overpay without tying you into mandatory payments of a larger size. I'd always pick the longest mortgage I can just in case circumstances change. E.g. one of my friends picked a 15 year mortgage and now can't afford her apartment but also can't sell it because of cladding. Had she gone for a 35 year mortgage she wouldn't be in the shit right now.

WhatAreWordsWorth · 05/02/2021 12:15

We took out a 35 year mortgage. We’re young (late 20s/early 30s) and it just seemed to make sense.

We often overpay, but it gives us the flexibility to have a lower monthly payment in the event of an emergency/job loss etc. Ours is £660 and is around 17% of our monthly take home pay.

When we remortgage in 2 years we will probably reduce to a 20-25 year term.

Sleepyquest · 05/02/2021 12:16

£700 and it's 25% of our take home pay. Not sure if that's too much or not. Looking to get a bigger mortgage when I earn more

2020newbie · 05/02/2021 12:17

£222

BarbaraofSeville · 05/02/2021 12:18

Good point about flexibility. If you're buying pre DC, a lower payment will help you weather the 'all of one salary goes on childcare' storm, plus helps if there is loss of income due to redundancy or illness.

You can always catch up later and avoids missed payments which can quickly lead to a downward spiral of charges and credit file problems.

Pyewhacket · 05/02/2021 12:21

Married soon after graduating and we both worked overseas for a number of years to earn sufficient for a deposit. As it turned out we had enough to buy the house outright. Spent a small fortune since restoring it. Property was cheaper 20 years ago.

Buntysbosom · 05/02/2021 12:26

£490.04

Dogonahottinroof · 05/02/2021 12:27

@MrDarcysMa

* I don't understand people who take out 35 year mortgages. We started with what we could afford to pay. When salaries went up we added in the automatic overpayment*.

This is a very weird comment. Why wouldn't you take out a longer term mortgage with smaller repayments if you're on a lower salary ?
If you're trying to buy in the south east on a lower salary you literally have no other option 🤷‍♀️

There are people inhere with tiny payments as a percentage of there income but they dont remortgage onto a short term.

That seems madness to me. I didn't explain it well but why would you sit on a 25 or 35 year term if the repayment is only 11% of your income.

We remortgaged ours down from 25 years to 15 years at a higher monthly repayment.

Dogonahottinroof · 05/02/2021 12:30

@WhatAreWordsWorth

We took out a 35 year mortgage. We’re young (late 20s/early 30s) and it just seemed to make sense.

We often overpay, but it gives us the flexibility to have a lower monthly payment in the event of an emergency/job loss etc. Ours is £660 and is around 17% of our monthly take home pay.

When we remortgage in 2 years we will probably reduce to a 20-25 year term.

Which is what I meant, I didn't express it well

I meant I dont understand people who stay on 35 year mortgages when their income goes up and so they are only paying say 15% of their income but over 35 years. Remortgage the term but not the amount down.

Lots of this thread saying their mortgage is a very low % of their income. You can remortgage to a short term and almost certainly save money by doing so.

BarbaraofSeville · 05/02/2021 12:35

I didn't explain it well but why would you sit on a 25 or 35 year term if the repayment is only 11% of your income

Well you don't always know what's round the corner (many high earners such as pilots a year or so ago for example!) so having a lower minimum commitment is a great peace of mind.

Plus, with interest rates so low, the old adage about 'pay off your mortgage and you'll save thousands' doesn't really apply any more.

We could pay off 80% of our mortgage today, with savings, but we're getting more interest on savings than we would save by overpaying so it would cost us money.

Other people choose to put spare money into a pension, that attracts tax relief that far outweighs the interest they pay on their mortgage.

In short, lots of reasons not to rush to pay off a mortgage and to be honest, I find the obsession with getting rid of it on here a bit weird. Our mortgage is quite a small expense. We spend more on food, holidays and probably other things, and it doesn't cost us anything in interest so isn't a priority.

WhatAreWordsWorth · 05/02/2021 12:40

Completely agree with you @BarbaraofSeville.

Shit situation if one/both of you ends up unemployed and unable to pay your mortgage. DH and I plan to start a family soon and having a lower monthly repayment gives us a lot more stability if I choose to take a longer mat leave.

We both also invest and pay into our own pension pots. Financial diversification is more important now, than ever.