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.

Looking to buy post-divorce and I'm looking in a bracket which will mean mortgage is 40% of my net income after pension contribution.

Why? If you're married this just results in you having a lot less disposable income than him (unless you earn LOADS more than him) while married. If you divorce (you've referred to "if we divorce" so I assume you're married), it's irrelevant who put in what by way of deposit and mortgage and the whole lot is just available for division on the basis of need. Why put yourself in such an unfavourable financial position during the marriage?

Earn 35000

Mortgage is 1200

Essex

So we have paid half each for the house that we will both own half of.

I do earn almost double his salary and have no car tax/insurance to pay and my car is electric so fuel costs are very low compared to his diesel so we would roughly end up having about the same. Plus my income is set to go up another 10-20k in the next two years.

Mortgage is £3150 pm. I pay 1/3 and DH 2/3. He earns double my salary.

It's completely mad to me to not go for a 4 bed home that meets all your needs.

You talk about him buying you out because he has a deposit but given your salary is almost double his you must earn at least 50k already.

So if your income goes up to 70k you could buy him out if you did get divorced in 5 or so years time?

I think it’s less about multiples and more to do with your age and how much the monthly payment is versus your take home pay.

Are you leaving yourself with enough to save enough for a pension? You should ideally be aiming for a pot of £800k plus if you want a retirement income of £25k pa.

Will you still have enough spending money and spare cash if the boiler blows up?

£200k is £1100 over 25 years with a 4.5% rate, versus £833 for £150k but is 25 manageable?

Will a more expensive house have more expensive utilities and maintenance?

I lean towards being cautious if that’s not obvious already!!

About a fifth of our take home pay. We have 2 DC and I've no interest in being mortgaged to the eyeballs, we enjoy days out, weekends at theme parks, treating the kids and going on holiday and I like little luxuries now and then.

When we bought our first house, we stretched to the maximum as I had significant pay rises on the horizon (hitting qualification). I believe our first mortgage was just under 5x salary at the time.

Now, eight years and one house move later (increasing mortgage slightly along the way), we are at 2.33x.

Stretching worked well for us, but we also didn't have any additional bills (like a car payment, additional debt) so we didn't feel squeezed.

My mortgage was 4.0 x my salary when I bought at the top of my budget 2.5 years ago.

Thanks to salary increases and consistent overpayments since purchase, my mortgage is now 2.9 x my salary.

In your position, I'd try to move mortgage provider.

I am limited to overpaying 10% of initial loan value per year, across as many payments as I like.

So our mortgage was 2.5x our salary when we bought our house, we had a 20 year mortgage. We live in the NE and could easily afford the size of house we wanted (not our first house so we had a good deposit).

If you are married why not get his deposit ring fenced then both pay a share of the bills (including mortgage) that means you have the same disposable income? Rather than both putting in exactly half.

I don’t want to move at the moment thanks, there are other things about the loan that are very favorable. Can’t afford to overpay 10% of the balance just now so the limit is not a problem!

Take home pay is around £1,400 ish per month. My mortgage is £854 per month. Needless to say, things are rather tight here

Depends where you are buying. In a lot of places, 250k doesn't get you much at all. So to me, it doesn't seem like a stretch. We are entering 220k mortgage, payments £1100 per month. Combined salaries approx 60-70k.

This is true. People get caught up in lending multiples rather than the actual cost of the mortgage against their net income (after pensions). Our current mortgage is 1.5 x our joint salaries. The bank would happily lend us 4 x our joint salaries. That is around a £700k mortgage...I guess in theory we could cover that but our lives would literally revolve around the mortgage payments.

Combined income £103 k mortgage £75k 1500 a month ( overpay)

Surely it's what's comfortable for you though. If you pay 1k a month in childcare then it wouldn't be. We don't.

£75k salary. Mortgage £150k on a £350k house.

I suppose I could have gone higher but it's been nice knowing that whatever interest rates do, I'll be fine.

You are taking the piss right?

Monthly income around £4K. Mortgage is £520 but we pay £700. I wouldn't be comfortable going more than 25% income for a mortgage payment.

60k household income, remaining mortgage is approx 210k on a 500k value house.

Mortgage payments about 25% of our income (but will go up soon)

600k mortgage on an 850k house, joint income of c.£180k

Mortgage just over 3k a month, nursery fees 1.4K a month - joint take home pay c.10k a month

Only started mortgage a few months ago so intending for it to be the highest it'll ever be, plan is to overpay once we stop paying nursery fees in a year's time.

Due to divorce I'll shortly be upping mortgage to £230k - salary circa £80k - repayments around £1300 a month

Erm no I’m not actually! Everything costs so much!

If you have £7k a month income and things are tight with a £390 mortgage you seriously need to budget. That is absolutely ridiculous!