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.

£545

For those getting twisty about the numbers meaning nothing to me and they don't get these question I'Ve asked for percentages of income which is relevant! In fact thanks for those who have replied as it has given a lot of perspective.
For example I think the new mortgage would work out about 23% of out income. So on that high side...but maybe doable. Especially as we would prioritise they house rather than holidays etc. I will look into interest rates and rises tho as that seems to be a good stress test. I have a very stable job as am a teacher of a core subject. My other half is self employed but is half way through arranging a government project that will last a couple of years. It is slightly lower paid than other contracts but would be the most stable type of work for the next couple of years to hopefully see out the storm. My worry is that it is not a good time to buy and that prices are going to drop further...however it's a quandary as we have been looking for a long time and this house for many reasons is perfect. Most houses in the town we are looking at are either historic cottages or new builds, neither of which we like. There's a really limited stock of detached period houses with a drive and garden. I'm trying to be philosophical about it and think if it's meant to be it's meant to be but I feel like I've got love heart eyes for the house!😍 it would definitely be higher bills as is more then twice as big as our current house.

720+300 overpayment. Only have less than 4 years left to go now.

About 1 per cent.

Hi op. Ours is 23% of i come.
Go for it! We have a large house with high council tax etc but i would sau 23% in doable and will hopefully get easier as years go on and you get a better ltv rate etc

Started at 40% now about 15%

Overpaying has definitely helped my mortgage come down.

If you love the house buy it. if interest rates rise you, and everyone else, will have to budget accordingly

Income*

The effects of covid and Brexit mean an economic tsunami the likes of which have never been seen is rapidly approaching. I'd seriously look into the economic forecasts and the resulting impacts on the housing, jobs markets before buying housing or increasing debt at this current time.

Just moved into my first owned property. Mortgage is £350pm, income is about £2000pm. So around 17/18%. I am a single parent though so didn't want to take on too much. I had a 50% deposit and am aiming to pay the mortgage off in 15 years.

Around £750 which is roughly 20% of take home.

£600 per month, around 28% of monthly salary (after tax). Single parent.

£800 which is about 1% of total income

So you earn £80k a month 🤔

23% of your income is totally doable. I’d go for it. We pay 1.5k. Dh has taken a bit of w drop in salary and it’s around 30% of his. We do have other income, which fluctuates so its hard to say a %.

The money you save in fuel and breakfast club will basically pay for the increased mortgage no?

£280. About 10% of our joint income.

About 20% of my take home pay

Knowing how much I pay is irrelevant. Perhaps knowing how much cash is available after bills is more helpful, which I can't provide off the top of my head. I have a £75k mortgage on a buy to let and pay £120 interest only. Meaningless.

The mortgage is for about 50/60% of the property and is 950 per month. We pay 1400 though which is about 25% of our monthly income.
It sounds like you'd have a significant saving in other areas so would probably be ok. Remember to factor in any big rise in interest rates.

Ours is 20% of take home pay. Was 30% when we first moved 5 years ago but has gone down as our salaries have increased and when we remortgaged after 2 years with a better loan to value. First couple of years was a stretch and we weren't able to save any extra but comfortable with it now

Actually it's nearer 20%

£401

33% of take home after tax, pension, and private healthcare. It’s on the high end of the recommended spectrum as a percent of income, but 1) it’s fixed for 20 years, so is never going to go up, and 2) DH is a high earner so we still have a lot of disposable income.

Ours is 15% of our combined take home pay. We both earn almost identical amounts, and opted for a smaller mortgage as I am currently pregnant and wanted to ensure we could afford the mortgage on a single salary if required (it would be 30% of a single salary income)

Mine is about 20%. I thought that the general advice is to try and keep to under a third of your income - although when I see the average rent/new mortgage costs there must be a lot of people who have to pay more than this.

Somebody up thread mentioned extra utility costs if you move to a bigger house. What about council tax? Would that go up?

I only really posted to say wow what a good manager you are Wanderlove. As it stands you do have some leeway if interest rates go up, especially as commuting/breakfast club costs will go down. Just noticed in time that autocorrect changed breakfast to breast!!!

@nettie434 when ds was small breakfast used to autocorrect to breast milk on my phone