To ask what % of income you pay on your mortgage?

[ErinAndTonic]

Particularly dual income homes who can still afford holidays each year. Currently we have a smallish mortgage and I only pay 10% of my income on it, my partner earns more so covers the rest and all bills etc.

We're considering moving to a bigger house and our mortgage would treble. He can afford his portion and with my recent pay rise I would pay a third while he pays two thirds and the bills etc (he earns significantly more than me). At the moment we have several holidays per year and I'm trying to figure out what the average people are paying mortgage wise against their salaries whilst still affording holidays.

We tend to do two long haul trips a year and two short haul for example. We don't have to budget at the moment but would need to be a bit more careful if we moved, which I'm looking at but thought I'd ask here too. We don't have children so there are no nursery fees, childcare expenses etc to worry about so that does give us more disposable income. This house is incredible but I don't want to be bogged down in bills so that we can't enjoy our lives anymore, especially after the past few years!

I think its somewhere between 20-25% but we are high earners so have plenty of disposable income left. I wouldnt want it higher than 25%.

Is that before or after tax?

Yeah I definitely want to figure out what my cap is so that the lifestyle side of things doesn't change, as then it becomes less worth it.

Think I'd be paying 16% of my take home pay on the mortgage possibly a bit more. Not sure for my partner but I guess we need to work that bit out.

We pay about 20%. Plus we also have 2 cars on finance which is another £500 a month on top.

We do go on holiday, but not abroad since covid. We can afford a week in the med (3 of us), plus the odd mini break in the UK.

33% after tax
Dual income

We pay another 25% of our salary on nursery so with other bills have very littlrleft but can afford the odd £60 flight to go home and see mum. No overseas holidays in our foreseeable future

Before tax, 15% ish?

We definitely can’t afford multiple holidays - certainly not 2 long haul per year - but then we have children so all our disposal income goes on them, and extra bills etc.

Just work out your new budget - factoring in extra bills if bigger house - and see what you’ll have left to save/spend.

After tax about a third.

After tax mortgage is approx 10% of income.

22% here of net income. There was an identical thread about this not too long ago.

We pay approx 15% after tax. Varies a little as I am self-employed. However, we have been paying our mortgage for 23 years- when we first started it was more like 25% of our income. We have three children, and still have managed a long-haul holiday most years, or a short-haul plus weekend break. Before we had children, we were doing three holidays a year.

At the moment around 8% but I'm looking to buy a bigger house that would put me around 20-25%. High and only earner, sole house owner.

Both of us pay around 12% each of our takehome on the mortgage. Obviously all other bills on top. We both pay half our takehome into an account that is specifically for all household bills including the mortgage and the regular food shops and any excess is then used as needed from this account for minor repairs/renovations and servicing etc. We earn similar amounts so this works well but if income varied massively we would re-evaluate.

And FWIW we take multiple holidays a year, though usually not long haul as it's not our thing, we prefer to ski. I'd rather do things with my income like go away, watch shows etc than up my mortgage payments for a better house (average 3 bed semi)

It’s about 1/3 of my wage, or 1/7 of household income.

That’s after tax.

About 15% of our joint income currently and we definitely live a very very good life. But, before I met DP I was paying a mortgage that was 30% of my sole income and I still had plenty of disposable income, spent several hundred a month on clothes, going out, frivolous stuff, several holidays a year etc. without children to drain the coffers I really wouldn’t worry unless it’s that your income is low and so the percentage left is still quite a small actual figure.

Ours is pretty small now as we only have a small amount left.

We pool all of our money, there is no mine and his even though I earn a lot more than him.

Jointly we pay 13% of our joint monthly income.

35%. Each. Not particularly high earners. It's crippling but we "only" had a 5% deposit after 6 years of saving (we were renting in London) and it's the only way we would have been able to buy.

This simple % question is not going to help, due to all the variables.

You need to draw up an accurate budget based on the last 6-12 months of expenditure. What effect does tripling mortgage payments have on the figures?

People with low debt, secure jobs and high savings may choose to spend a higher % on a mortgage each month, feeling confident it is manageable.

Your own priorities around holidays are another factor.

I don't think % is very helpful
What matters is how much you have left after essential bills.

for example, a family with take home pay of £30k paying 20% of their income on the mortgage would have £24k left over. A family with a take home of £40k paying a bigger percentage of 25% on the mortgage would still have more left over (£30K) despite the higher proportion of income paid.

You have to work with the actual figures, which I know people are reticent to share!

I'm not sure percentage of income vs mortage is the relevant thing here, it's how much disposable income you have left after all the essentials. Someone with a mortgage of 25% + bills of a £20k salary of will have a lot less left than someone paying the same percentage on an £80k salary.

I'd look at the disposable income you have for the lifestyle you enjoy now, work out what it would be if you bought the new house, whether it'd be enough or there are obvious places you could comfortably (and happily) cut back if needed.

My house is bigger than I need and, although I absolutely love it, the higher mortgage repayments have impacted my quality of life as I don't have the freedom to accept every social plan or nip off round Europe like I used to. There are times I'm happy with that choice and times I'm not!

About 13% of my take home pay for the actual monthly payment. I often overpay though by whatever I have left at the end of the month.

23% of our net salary.

We can't afford holidays at the moment due to expensive childcare but once both DC are in school we will be able to afford holidays again (if we choose to - tbh we are not big holiday people)

Our mortgage payment is 14.5% of our take home pay from our substantive roles, this does not take into account self-employed earnings and dividend payments, nor increased pension payments - those probably take it below 10%.