How much do you pay for Mortgage?

[wanderlove]

We are starting to look at moving in the Autumn. At the moment we pay about £1000 a month but we are overpaying and trying to get ahead. We've just looked at a beautiful house but our mortgage payment would be about £1500 a month. We do need a bigger house as we have 4 kids in a three bedroom. It's fine at the moment but as they grow we will need more space. At the moment we manage to save £1000 a month on top of paying the mortgage. I don't mind scrimping to do this; I shop at Lidl, get the kids clothes second hand and we generally go on uk holidays and camp. I guess for me I enjoy spending money on a home rather than other things to make me happy. However I am also very careful with money so thinking about taking on a big mortgage makes me very nervous. By moving I will reduce my commute to nothing so will save a tank of petrol (approximately £70 per week) and also have to pay less in childcare as won't need to use the 7am breakfast club (approx £40 a week) so the move could save in other areas of our budget about £400.
I am feeling really anxious and have no idea if it seems like too much. Would you mind telling me how much your mortgage is and perhaps more importantly what % of your income it is?
Also any things I need to think about consider when taking on a big mortgage particular when working out if I can afford it.

£350 pm, i bring home £1650ish, so i think thats around 22% of my income, i think? Actually got the rate when i was bringing home around £1300 a month (cheap area!) ,looking to change to a slightly higher payment next time, to knock a couple of years of the payment time as pay due to go up a little more by the end of summer. I feel privileged as i live in a cheap area, got my mortgage on a 20k single income and have managed to add a good chunk to my income to make the ratio much more enjoyable in terms of non essential spending.

20% of income after tax

24 % of income. You need to consider putting money aside for the kids post 18, e.g top up to student loans or transport /accommodation for first job/apprenticeships.

There is stuff on Martin Lewis forum about how much percentage on household budgets should go on savings, emergency funds etc

Yes sorry 24% of income take home

13% of our combined take home pay. It's a very small mortgage and we arent massive earners. We really need to move but I'm dreading the shock of the increase and putting it off

Without age/ length of mortgage / area it’s all going to be random. My first house cost £37,000 30 years ago, do my mortgage is minuscule. My DCs when they are at the stage are going to be huge.

£800 which is about 1% of total income

£180 a month. But we did buy it in 2000 when property was cheap. Mortgage is paid off this year.

£984 which is around 22% of our joint income

Numerous insurance policies involving the way the property was financed and personal protection in regards to bankruptcy. Building and contents are still in place, obviously 🙄.

£560 mortgage payments and our monthly income is about £3300 if I work 1 day a week 😳 if I worked more then we’d get more. I’m a lazy cow and like about 2 days a week 😳 but we can afford it

@PileofToss

Wow what do you do for a living? Yes I’m nosey but you don’t need to say of course. I just wonder what king roles comment £80,000 salaries? Well done

Personally, I would be uncomfortable to pay more than 25% of net monthly income on my mortgage but that’s my own choice. We’re in recession and unless you’re extremely confident with your job security, now is not the time to incur significantly more debt. Batten down the hatches would be my advice. House prices will be lower next year than this autumn imo. The economy will take longer than a few months to recover I’m afraid.

Our mortgage was originally £1200 out of wages of around £3600. We jumped from £550 mortgage to £1200 and I remember being really stressed about it but you just get used to it.

The biggest shock for us was the increase in gas and electricity. So bigger mortgage and bigger bills.

About £1350.

£3,000 per month.

26% of my take home pay, just less than 20% of my gross pay.

I don't get these types of question. What other people can or can't afford isn't relevant to you at all as they won't be the ones paying your mortgage.

Our mortgage payments are tiny because were on a tracker mortgage that's capped at base rate plus 0.5%. We took it out when we moved house 15 years ago and it's the best thing we ever did. We are now overpaying it at £1000 a month.

We have always worked on the basis of our mortgage payments being 25% of our net income. That has felt comfortable and given us the security of knowing that we could manage a rise in interest rates.

£1500 a month but that slightly overpays it, we are going to increase payments to £2500 next year to pay it off earlier

Mortgage is £480 a month which is 8% of joint income. I was overpaying, but stopped for now. I recently had a large salary increase and have plans to save £1500 a month to purchase another property.

@PileofToss you make almost £1m a year? Why on earth do you still have a mortgage!

Ours is about 35% of income roughly including a large overpayment. Without that overpayment it's about 23% of our income.

25% of my net pay.

I just worked out that my half of the mortgage is 19% of my income. Interesting. I keep meaning to overpay but I'm also mindful of having some savings in case of urgent need (i.e. boiler breakdown, sudden job loss etc.) so dont wanna put all my money into mortgage iykwim.