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.

£415 about 18%ish.

7% of our combined wage. We like the holidays and things so don’t bother overpaying even though we shoul.

@ChochoCrazyCat not made of diamonds, made of cheap shit but located in London lol.

OP we pay 19% of our combined post tax income towards our mortgage of £2000.

Mine is £3k per month so 50% of my net income. My husband (who earned considerably more than I did) has been made redundant. I don’t recommend it.

This is a zombie thread.

£275

Oh god I didn't realise

@closetparty

Slightly off topic but why put so much in to savings to shop at Lidl and buy second hand clothes?

I get the need to have a back up fund but honestly what are you going to do with all those savings? I’d rather have a more enjoyable life with some luxuries than a frugal life with massive savings.

Life is for living - if this year has taught us anything.

I think this year has taught us if you dont have decent savings it can be a very bleak future

Nothing ours is clear, if your income will increase over the years, go for it.

£500 which is about 20 percent of income.

About 50% of my take-home pay.

I’m out of work so on universal credit and my mortgage is 70% of my UC. Good job I get child benefit otherwise we wouldn’t eat!!

18% of income after tax

30% of joint income.

£1,900/month which works out at just under 18% of joint take-home.

OP, on your position I’d go for it if you’re both in secure jobs, have stress-tested yourselves to interest rates of 5%, and if you’ll still be able to save each month.

£700, including a £50 overpayment. 12% of our combined income.

However, we are childless high earners and saving £2.5k pm also. We also live in a tiny one bed home that is perfect for just the 2 of us as we enjoy having plenty of disposable income. This is more important to us than extra space!

When we chose to have a family we will buy a bigger home to accommodate and would look to be similar to you- mortgage of about £1500 and savings will probably drop to about £1k as also anticipate higher bills.

I think you should go for it, even if you can still save £500pm and have an emergency fund of say 3/6 months expenses, this is more than most have and would still leave you a good cushion.

14% of post tax income

the real question is could you pay your mortgage on 10% interest rates?

Good point. Mortgage interest rates have hit 15% twice in my adult lifetime. I think they went even higher at one point.

12% when I first applied for a mortgage.

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 🙄.

You say "obviously" however a colleague of DHs though he didn't need buildings insurance when he owned his home outright, found out he was wrong after a gas explosion (caused by his failure to maintain the home) blew up his house and his neighbours. Thankfully no-one was hurt, but he is now bankrupt.

So whilst I am very glad you have buildings insurance, it isn't obvious to everyone!

£4,600 overpaying as we're near the end

Paid ours off years ago. But about £450 a month. But it depends on your income and outgoings. I'd say no more than a quarter of your take home pay to not be worried about every penny.

£1400 a month but we overpay 1000 on top of that too- about 15% of income. Like you, we economize in other areas in order to kill off the mortgage early.

Ours is £710 but we are paying £1100 and only 3 years left to pay. It is 8.33 percent of joint salaries.

If you need more space so you will have to move at some point and you will save on other things like travel and breakfast club it sounds like a sensible move. You say you save £1k each month so instead of saving so much the extra just goes to mortgage. I think it is less important what percentage a mortgage is but how good you are with handling money and resisting splurging on non essentials. It sounds like you are good at budgeting and ATM we have such low mortgage rates you should take advantage of them and get the lovely house now so you get to enjoy it when children are youngest. I am making assumption your jobs are secure.

19% of take home, soon to be 17% of take home due to DH getting a payrise.

Our first home was about 25% of our take home, but we didn't have kids then. That would be uncomfortable now.

@Alex1970

£4.84, I have kept £600 outstanding so as I have access to my overpayment of £141k @ 2.1% should I need it.

It’s usually not as straightforward as that to access your over payment