What is your mortgage/Salary ratio?

[Waisted]

How many times your salary (or combined household income) is your mortgage or what was it when you got it.

Looking to buy a home and wondering what people feel comfortable borrowing. We have a combined income of £85k, (likely to rise by another 10k in a year or two) and deposit of approx £100k (subject to sale of DPs house).

DP thinks we should be looking at homes in the £250 and under bracket but I think we could easily stretch to £300k

No childcare fees to consider.

If I'd stayed in the same house I first bought, I'd have a house valued at £165k. I didn't, moved a few times (not always a bigger house - alway in a nicer area), mortgaged up to 3x salary plus most of the equity released from previous property each time and now live mortgage free house that's worth almost 5x the first one. I plan to sell when I retire, move somewhere else and enjoy the money

I'd go for stretching your borrowing!

House was £550 put down £170k . Combined income around £8k month but both get a bonus that's different every year. Mortgage is £1500, all bills £2000 or just under . My take home is around £4k so my half is 25% of my salary.

Got 2 years until remortgage so will see what happens when rates go up!

Our take home is £4500pm and our mortgage payments are about to go up to about £950pm. House is worth £250k and the mortgage is £180k.

It's doable but we don't have any children.

Mortgage 82k ish (£385pm plus £200 management fee so just under £600pm)

Take home £1800

Just to say that I do not think this is a representative sample of mortgage to salary ratios. Most of my friends either have or will be looking at 3.5-4x their joint salaries for a mortgage.

Currently paying around £3,200 a month because we have a 15 year mortgage due to DH's age. Original mortgage was just over 3x joint salary. We're on 0.5% above base rate. We take home around £7,200 a month.

It's not easy but we still have a 10 day luxury holiday a year, eat out at least once a month, and have a great Christmas.

We have a three year old car which we got new and costs £400 a month which we will change in July and that will cost more than before because interest rates are high.

It depends on the lifestyle you want. I'd be more concerned he is thinking about separating before you buy together, but buying as tenants in common and you paying more for the mortgage seem sensible. Moving house will cost money as will furnishing and decorating.

Mortgage amount is about 2-2.5x salary. We’re mid fifties and will be getting an offset mortgage so the outstanding amount will be very small.

Our house is worth about £300k. Our current mortgage was £160k when we took it out, must have been 3 times our salary when we took it out. It's now down to £70k. We take home £4200 a month and mortgage payment is £990 a month but currently overpaying up to £1150. It's quite tight just now for us with 2 kids and living costs are so high.

We bought our £365k house when our salary was only c£70k (which I have to admit feels a bit mental now, we bought initially with HTB though so it didn't feel too scary at the time) our salary is over £115k now though so doesn't feel scary anymore, and that's what's worth remembering really, once your house is bought the mortgage is relatively static (not accounting for interest rates of course!!) but wages will go up, how fast depends on your careers of course.

(Only 5% deposit I should add).

Combined income - way below anything you will see on here, mortgage £0
Being old has its advantages as we paid off our mortgage years ago. No idea how much our house is worth, but the house opposite sold for £560k a couple of years ago.

Take home 2800 and mortgage/rent (shared ownership) is 760. Plus service charge of 160.

I wouldn't want it to be any higher.

I also have a car loan of £100 p/m and £200 p/m credit card I'm paying off. I'm not hugely extravagant in my spending - high street toiletries and I'm not frivolous with clothes.

there are so many variables to consider, it is difficult to give a reliable multiple, but in general I would aim for 3x combined salaries. That should be a comfortable amount and means you can easily adapt if other bills go up or rates increase again. That is closer to your husband’s figure, but yours isn’t massively off - if you retained savings after the deposit it would feel more doable to stretch to the higher figure.

we took on 3.5x salaries over 20 years knowing we could extend if needed. it was incredibly comfortable at the time we took out the mortgage, but 4 years on and it is much tighter than I would like due to inflation and challenges in our respective employment sectors that have meant wage growth and bonuses less than expected. I am glad we didn’t take on more, as it would have left us with very little wiggle room.

https://www.mumsnet.com/talk/money-matters/5261935-mortgage-what-of-your-salary-is-your-mortgage

This might be of interest. I was in shock that some people are over 50%, mine is under 15% - but it is nearly 20 years in.

11% is very low, and if you can find a house that you love for that price great - but don't settle.

Depends to some extent on the mortgage rate.
A mortgage should never be more than three times your gross annual income. With a favourable mortgage rate you should be good to go at around 250 max.

This except in 2001 and joint income about £35k

Initial borrowing was 2.5 times household income. Currently owe about 0.75 times household income.

Does the extra 50k make much difference to repayments, and to the quality of housing you'd get?

Those who overpay on fixed rate loans (presumably using the 10 percent rule) . Can you over pay a bit monthly or do you have to do it annually. How do you overpay - do you have a mortgage account you just send the extra over to?

Just be careful here. Right for your partner to ring fence his 100k but if the rest is 50/50 legally even if you pay 80% of the mortgage he is still entitled to 50/50 of the sale proceeds so you’d effectively fuck yourself. People change when they reach the end

When we bought our house we were on a similar income to you and we borrowed 260k , but we had no dc and interest rates were lower, we earn more now and have paid some of the mortgage of, but do have DC and interest rates have increased so our outgoings are higher and we don't feel any better off!

i was going to say exactly the same thing!

My mortgage is now under 3x my salary, and I wouldn’t want to increase it, but that’s because I want to prioritise pension savings / early retirement. It was originally 4x salary, which felt comfortable enough - repayments were about 40% of income, which I’ve maintained with salary increases to overpay a bit.

I've always had mortgages that let you do it any time you want. Just make a payment from online banking using the same account details as the ordinary mortgage payment.

Combined salary 70k. Mortgage was only 90k. We are about 400 a month. Paid off in about 5 years. Could do it earlier but don't really feel the need to.

Our total household income is probably somewhere around £100k. I honestly don’t know as Dh is a company director (so paid in dividends and it varies) and while I’m normally employed I’m actually not working at the moment as going through cancer treatment. But I’d say £100k ish when I’m working too. Our mortgage is £1700 pcm. £490k mortgage on an £820k house. According to our lender, we could have borrowed up to £620k 😳 but frankly that seems quite a lot. Our mortgage as it is now is comfortable, but hoping to pay a chunk off before we re-mortgage because interest rates.

i see why people do this when they need to get on the ladder, but it is a really precarious place to be if you don’t need to. We all expect our income to increase, but it doesn’t always work out that way- we’ve had periods when our income has shrunk significantly for a period. I don’t know what the difference between a £350k and £400k house is for op, but in my market it wouldn’t make such a massive difference as to warrant the increased financial exposure.