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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:
2BDIs · 05/02/2021 12:48

£1892

throwa · 05/02/2021 12:51

Not sure what this is saying. Surely what would be more useful would be, what is mortgage as % of your take home pay, and then to qualify this with where you are in the country.

Talking about the payment in £ will depend in term of mortgage, whether or not you make overpayments, what size house / flat you have and what interest rate you are signed up for?

Ginfordinner · 05/02/2021 12:51

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General money
donewithitalltodayandxmas · 05/02/2021 12:55

Wow if we got a mortgage would be 50/60% of our income .
Lots very low percentage of income on here

sunflowersandbuttercups · 05/02/2021 13:02

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.

Because you never know what's around the corner. I know a lot of people who took on huge mortgages they now can't afford because they're furloughed or have lost their jobs.

In our case, lower payments over a longer period gives us security - we're both self-employed so not having huge housing costs hanging over us every month is very reassuring.

I don't know why it's seen as a good thing to have mortgage payments that swallow nearly 50% of your income.

sunflowersandbuttercups · 05/02/2021 13:03

@donewithitalltodayandxmas

Wow if we got a mortgage would be 50/60% of our income . Lots very low percentage of income on here
We did it that way on purpose.
garden4569 · 05/02/2021 13:06

@BarbaraofSeville

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.

well, there is something that is quite freeing about being mortgage free and interest rates will go up at some point, so reducing the mortgage in anticipation of this can feel liberating. Also, we are currently in and have ahead rocky times with work - if your main outgoing is reduced, it also reduces pressure and stress.

you are right though that if you're using the money (that you could additionally add to your mortgage ) to invest, then that's probably a good plan.

However, I don't think alot of people are that disciplined and the money they could reduce the debt with is used to enhance their lifestyle and end up staying in a debt cycle that keeps people working well beyond what is necessary than if you'd made different choices.

Juno231 · 05/02/2021 13:11

We also don't know what people's other outgoings are. They might have a small mortgage that's a small percentage of their income but then have two kids in nursery - which in London is another juicy £2.8k.

sunflowersandbuttercups · 05/02/2021 13:24

well, there is something that is quite freeing about being mortgage free and interest rates will go up at some point, so reducing the mortgage in anticipation of this can feel liberating. Also, we are currently in and have ahead rocky times with work - if your main outgoing is reduced, it also reduces pressure and stress.

I don't find out mortgage payments stressful because they're such a small amount of our income. Ours are just 10% of what we earn - some months, it's even less than that. But it means if either us end up out of work, we know we can still pay the mortgage. It also means we can overpay if we want, but we're under no obligation to fork out huge amounts of money every month.

I cringe when I see people paying 1.2k a month on a mortgage! Even if's just a 20 year term, what do you do if you lose your job or are forced to cut your hours? How can you afford to keep your home if your payments are such a huge amount?

Juno231 · 05/02/2021 13:30

@sunflowersandbuttercups although focusing on the number 1.2k is misleading anyway - as that might well be 10% of their income?

A1b2c3d4e5f6g7 · 05/02/2021 13:31

£1370 with 33 years to go 😱 hopefully remortgaging shortly to £1680 and bringing it down to 24 years. Still a long way to go

sunflowersandbuttercups · 05/02/2021 13:33

[quote Juno231]@sunflowersandbuttercups although focusing on the number 1.2k is misleading anyway - as that might well be 10% of their income?[/quote]
That's true.

I should have said people with mortgages that are 40-50-60% of their incomes, really.

sarie2468 · 05/02/2021 13:59

£613 but we also pay £389 rent as we're shared ownership

BernadetteRostankowskiWolowitz · 05/02/2021 14:04

Childcare can easily be double the mortgage payments - ours was! So paying 12.5% on mortgage and another 25% on childcare makes things tight. That's why people may want to keep their mortgage payments low.

tenlittlefrogs · 05/02/2021 14:04

1,200 with 28years to go, but we're in London and have two DCs. So it was that or buying something really unsuitable for a family. Hopefully, we'll be able to downsize once DCs leave home but that's not for a while yet. Am really impressed with everyone's low mortgages

BarbaraofSeville · 05/02/2021 14:17

Am really impressed with everyone's low mortgages

People say things like that, but they're generally less impressed with what it buys, as in the house is too small or not in a desirable enough area or the right part of the country for them.

Even if you don't have the benefit of buying when prices were lower or a with a large deposit, there's still plenty of places where a mortgage of under £500 pm will buy a house for a family in a perfectly decent area.

sunflowersandbuttercups · 05/02/2021 14:34

@tenlittlefrogs

1,200 with 28years to go, but we're in London and have two DCs. So it was that or buying something really unsuitable for a family. Hopefully, we'll be able to downsize once DCs leave home but that's not for a while yet. Am really impressed with everyone's low mortgages
I suspect the vast majority of people with low mortgages don't live anywhere near London, though.

If you choose to live in/near the capital, then you have to suck up the expensive house prices that come with it.

A lot of people (not you especially) saying "oh, I wish my mortgage was that low!) probably wouldn't want to live in the places those people live.

tenlittlefrogs · 05/02/2021 14:41

In response to PP - DH and I are both in sectors that only really exist in London but are not actually all that well paid (by London standards). If it wasn't for that, we'd be out like a shot but then we'd also be unemployed. Not everyone who lives in London does so on a high wage - but most people unless they got on the property ladder 15 years ago end up paying lots for not particularly great housing.

louisejxxx · 05/02/2021 14:43

£700, which is high considering the amount the mortgage is for because my partner has bad credit. Hoping for it to go down to around £500 when we remortgage at the end of this year as a couple of things will have dropped off his credit file.

G5000 · 05/02/2021 17:00

interest rates will go up at some point
Not mine, fixed rate, only way for it to go is down if I want to re-negotiate it. We pay around 3K, a few more years to go. Don't see any reason to overpay as our interest is so low it's practically free money and I earn more from investments.

Serena1977 · 05/02/2021 17:04

£477 per month

ssd · 05/02/2021 17:07

I'd live to see the actual houses being paid for here, I'm intrigued the 4000 a month posters,how big must the house be!!

Equimum · 05/02/2021 17:12

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.

We could only get a 32 year mortgage agreed on our house. The bank stress test said we couldn’t afford bigger monthly payments (although we could borrow the sun of money). We had nursery coats at the time, and that was the factor. We have continually overpaid, and when we renewed the mortgage this year, we were able to decrease the term. We are continuing to overpay and will hopefully further reduce the term, but sometimes it not the easy choice you make it sound like. (We didn’t want to buy a cheaper house on a shorter term, as we would then have moved again, and that would have probably cost more in the long term).

doctorhamster · 05/02/2021 17:14

Just under £900 a month.

MrsKoala · 05/02/2021 17:47

@ssd

I'd live to see the actual houses being paid for here, I'm intrigued the 4000 a month posters,how big must the house be!!
I suppose it’s more how much is the house and what’s the percentage of the mortgage. Our mortgage on something like £270k is approx £1600. Our next door neighbours have just sold their house for £1.1m. We could quite easily have a £550k mortgage and be paying £3200 per month and still have paid a £550k deposit. The house is a 5 bed town house, it’s a nice size but it’s not a country pile by any stretch.