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.

Ours is just over £1000, it’s about a third of our income. I wouldn’t want to go above about 40% of income unless necessary.

£1200 about 18% of joint income after tax.

36% of DP’s salary. Nursery fees are 54% of mine. (We actually split it all proportionally between us but the payments are initially done like this.) We don’t have many other outgoings though because Covid, small sleepless child who destroys my desire to go out even if I could, etc. Plus no car, bills and food fairly affordable, though very little goes into savings or overpayment at the moment; we’ll do that after nursery.

We plan to move somewhere cheaper, ie not London, to reduce the mortgage. Currently locked into a v low interest rate for 5 years which is reassuring given the global economy binfire; and have mortgage protection insurance etc too.

I concur that you need to think
About interests rates and how those changing might make the repayments unaffordable?

£4300, although our rate is up and we will save £500 when we re do it

If I understand you correctly then with the new mortgage you would still have around 4.5k after paying the mortgage. Is that right? If so that's absolutely masses and plenty for abroad holidays, new clothes, activities (if you want them) without any financial strain whatsoever. If I were you I would go for it.

BTW our mortgage is £715 but we have a lot less than 4.5K to start with.

@Alex1970

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

And you felt a burning need to resurect a zombie thread to tell us

£1000 which is 11% of our earnings

I no longer have a mortgage as the insurance paid it off when my husband fried

^ Died.

£1520

£1250, 21% of our take home salary

£350, about 10% of our net income. We had 50% deposit.

£480

£290 which is about 15% of my income.

We pay £450 per month which I’ve just worked out is 13.5% of our net income. However to keep our mortgage low we paid a huge deposit.

@AllForAnEasyLife 12% after tax 😱 I mean to be fair your take home must be 14k ish a month which is an incredible salary. Our joint income is nowhere near that and both in good and one of us in 6 figure jobs. Are you sure?

Ours is £250 and it’s 5% of our income. We downsized a couple of years ago after I retired.

420 we earn 3400 combined per month

Mortgage is 430 around 11% of household income. This is in Northern Ireland.

£300 per month, which is about 10% of our take-home pay.

£800 which is 30%

They get really shirty when you pay if off early
Eh?
I paid mine off a couple of months ago. I overpaid with no penalties to £100 and then asked for a settlement fee which was negotiable. No one was shirty with me at all!