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.

Mine is £420. It’s 1/3 of my take home pay.

£1,400ish, but we overpay on top of that.

We pay £750 for a 4 bed semi and is 16% of our combined income after tax

17‰ of our combined take home pay, which seems low now I've read some other replies!

19% off take home.

1200 which is 22% of our dual take home pay, we only have 1dc and don't holiday abroad much any way.

About 25% of household income

£0 now, we paid it off when we downsized from a home each to one between us. His mortgage was £250 mine was £650. We had a lot of equity so the remaining money was used to buy a holiday cottage between us. We also have a rental property each.
I'm glad I moved into a bigger house and was able to downsize later on. I wasn't frugal with holidays etc though, couldn't have done that - I'm a cruiser not a camper.

Forgot percentage. 10%

We’ve just gone up from £900 ish to £3000 as we’ve just bought a second property. That’s 25% of our monthly take home pay. We could have borrowed considerably more but we’re comfortable with this as we could afford it on one salary just about, plus with two properties you can of course sell one or rent one out which you can’t easily do with a family home.

Make sure you factor in an increase in other household bills too. We saved and saved to move from a two bed flat to a four bed house, over paid on our mortgage and when we moved, our mortgage wasn't actually all that much more. But council tax is double. £100 to £220! We pay more for heating because it's bigger, the electric bill is higher just because we're more often in different rooms to each other so more lights on. It's not just the mortgage payments!

I key around £1000 a month which is 36% of my net salary. I am a single parent. I have overpaid quite a bit so far. It's a small two bed, so I couldn't go any cheaper. It's manageable. I still have £1600 for bills, food and other stuff - it only has to cover me and my 8 year old. I don't run a car, work from home, not many luxuries. That's more than enough. My payment will go down when I remortgage next year.

@Whatisthis543

Yes that’s right. 159k a year between us after tax.

20% of our net income

Yes that’s right. 159k a year between us after tax.

159k net per year between two equal earners would be two salaries of £131,000 per year. Above average but not uncommon.

Worried that I've only just worked this out but 25%

OP did you go for it in the end?

I have always gone for a monthly mortgage payment of around 30% of my monthly take home pay (not including pension and share purchases).

As my wages have increased over the years I have upsized my house. Currently I pay about £1500 per month.

My view is that the more your house is worth, the more money you will make on it (equity). Property by me has sky rocketed and my property has gone up 40% from when i purchased it 5 years ago.

I personally find this just right with more than enough cash left for holidays and other items and we don’t go without.

Let’s be honest, if interests hit anything like 10% the whole property market and economy would implode. Literally everyone would be screwed. It’s a different world now. One with low interest rates.

£1700 which is about 1/3rd of our joint income. It used to be less of our joint income, but DH makes about half of what he used to after redundancy

£300 which is about 10% of our monthly income.

£1895