What % of your income is your mortgage?

[DeerMyDear]

I realised I have no idea what other people do. For transparency, ours is 10% (household income £5000, mortgage £500. But think we might move house and up the % but then that feels scary. But maybe I’m being a wuss.

Just interested in what others do x

35%

10%

25% of net income
Lived in same house forever but remortgaged for an extension

How are all of these so low? I actually thought 70% of my income/50% of joint was actually pretty good!

We still manage to live very nicely and save around £3000 a month despite the huge mortgage.

5% - but we pay more

@SmorgasBorb

How are all of these so low? I actually thought 70% of my income/50% of joint was actually pretty good!

We still manage to live very nicely and save around £3000 a month despite the huge mortgage.

How on earth did you pass affordability rules for your mortgage provider?

@SmorgasBorb

How are all of these so low? I actually thought 70% of my income/50% of joint was actually pretty good!

We still manage to live very nicely and save around £3000 a month despite the huge mortgage.

Obviously the answer to this is that 50% of a very high income is fine because you still have plenty left over. If your joint income was only £2000 a month, 50% of that wouldn’t leave much for anything else. If you’re managing to save £3k a month after paying 50% of your income on a mortgage, you obviously fall in the first scenario.

About 50%. London zone 3.

Crikey. At 38% and £1600 a month, ours is very high compared to most! That's what a 5% deposit does!

about 20%

@SmorgasBorb

How are all of these so low? I actually thought 70% of my income/50% of joint was actually pretty good!

We still manage to live very nicely and save around £3000 a month despite the huge mortgage.

🤣🤣 oh dear!! If you can save £3K a month there's your answer... it's not rocket science!

Just under 25%.

For comparison

My rent of £700 is 43% of my income.

I’ve been served a S21 as LL wants to sell.

Rental prices have shot up the last year and the rent on a similar house would be 56% of my income.

Lone parent.

10%. I don’t need a bigger house, I like this one.

One of the best things you can do is pay off your mortgage early!
There are online calculators that tell you how much you reduce the total amount repayable by, if you overpay.

Even a consistent small overpayment each month can end up making several thousands pounds difference in your favour over the life of a mortgage.

Bar having enough savings to cover emergencies and other things having excess money sitting in the bank with current interest rates, is not good.

Nearly 50% of earned income, but house was bought jointly with ex who earned more and I'm now paying it on my own. I am not a high earner, but it's still cheaper than rent

Mortgage 34% of net income - divorced mum of 3 young adults who still need somewhere to call home . Their dad remarried and moved into a 3 bed house and made it clear our kids wouldn't be staying overnight.

@SmorgasBorb

How are all of these so low? I actually thought 70% of my income/50% of joint was actually pretty good!

We still manage to live very nicely and save around £3000 a month despite the huge mortgage.

I’m trying to do the maths here… you must be on a very high income and have a very nice house for your mortgage to cost, what…at least £3500 a month? And to have £3000 a month left over for savings after everything else is paid for.

In your shoes I’d definitely be overpaying that mortgage!

Not my numbers, but This is not far off what we pay (£150 less than this poster) but £2100 of it is overpayment!

We are high earners and have a 6 bed house in Herts!

You are right, overpaying makes perfect sense which is why we do! Will be Completely mortgage free next May and can’t wait!

One of the best things you can do is pay off your mortgage early!

Not necessarily. Mortgage rates are very low at the moment so you may be better off investing.

@PattyPan

One of the best things you can do is pay off your mortgage early!

Not necessarily. Mortgage rates are very low at the moment so you may be better off investing.

Indeed, this is true! If you can get a decent return that doesn’t lock you in for a prolonged period, nor Costs too much to administrate etc, and once CG is accounted for (unless a good investment ISA is found, it hi h will cost money!) then investing can be a good idea! Unless the average person knows what they’re doing here (and most won’t),

Sorry posted too soon…

and has enough once they’ve stopped Jed up their savings and used their ISA allowance, most people simply won’t have enough left over to do this!

Sorry! Fat fingers and autocorrect means I am not making much sense!

21% but single income household.

You don’t really need to know what you’re doing - active trading doesn’t generally give better returns than just sticking it in a tracker fund which you can do with any S&S ISA.