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!

Thank you everyone for the input. If actual figures are easier.. my partner earns around 72k, and I have changed career recently so still relatively junior. I earn 36k but the earning potential is very good once I complete training courses and progress etc.

I wouldn't pay household bills, only my own direct debits etc. so for me it's mortgage, my bills and stuff like food etc then the rest is disposable income and currently a high % goes on that.

We could cut back though. Due to covid we have only been able to do to places like the maldives long haul which cost us lots more than we would usually pay. But we love Asia etc which is much more affordable once the flight is out of the way. I think we will be okay as we don't have the costs of children (do have a very spoilt cat but that's it) - my goal is to have similar or a little less disposable income but not significantly so. I am trying to be more minimalist and not spend willy nilly so a bit less is fine as I can prioritise holidays over frivolous spending.

It's such a lovely house and with both of us WFH mostly for the foreseeable it seems like a good option.. in the past I'd have been less sure if we were only there evenings and some weekends as we're rarely home at the weekends as it is.

It's a pretty low percentage now, but my first mortgage was around 40% of my salary with an interest rate of 15%. Whatever mortgage you decided to take on, be sure to get some illustrations of higher interest rates.

25% of the main wage earner but we each put in 35% to the kitty which covers mortgage/bills and anything remaining at the end of the year goes to the overpayment (or a holiday).

Agree with the posters who say you need to go through all your budget to see if it would work for you because everyone has different expectations about all aspects of lifestyle and money left for holidays is only a part of that.

How much do you spend on groceries? £50 a week in Aldi or two/three times that amount in Waitrose?

Do you spend a lot eating out/buying lunches/coffees etc day to day?

What will the bills be in the new house, council tax could be more, and utility costs vary enormously depending on type of heating system and how much you use it (two long showers a day using an electric shower costs tens of pounds a month, so significantly more than if you shower at work/the gym or just have a quick shower every other day).

Do you spend a lot on clothes, accessories, grooming etc?

What about hobbies, gigs, theatre etc?

Do you spend a lot on decoration/furnishing etc?

The above can make a massive difference to affordability of holidays etc even when people have the same income, mortgage and number of occupants.

What about cars? Two 'nice' cars on finance can add hundreds of pounds a month to your base costs.

We’ve been on 1 income for a few months (planned as DH has a career change)

Our mortgage is 27% of my take home pay. Our nursery bill however is 50% of my take home!

When DH is earning again The mortgage will be back to 14% of our joint take home which feels very comfortable. We can pay more off it if we want to or invest our savings elsewhere.

I know it’s a great luxury at the moment but I like that we can live off one income without really making any changes if we have to and it was very useful for maternity leave etc. The size of our mortgage really helps with that. Something to consider especially if you plan on having kids!

25% of total household income after tax

14% after tax roughly as income is a little variable

29% of joint net income - it’s a small terrace but we live in the south east and only got on the ladder a couple of years ago so a massive mortgage was inevitable. We still have plenty of money for holidays although we don’t fly more than once a year on environmental grounds.

Just slightly less than 10% of combined take home pay - looking at 4 holidays this year. We could and would pay more if we could find the right house (which despite looking I haven't been able to find)

After tax 30%. 40% if we overpay some months. Got a plan to get it cleared asap.

40% - but mine is the only household income
I can still afford holidays!

We pay currently pay 10% of our net incomes, but we're moving and will he paying 20% soon. This leaves plenty of fat in the budget for price increases/holidays/childcare etc.

35% after tax + pension contribution.
Single income but pretty high earner and no other loan, and no kids, so still plenty of disposable income

11%. We have a lot spare for holidays, short breaks etc. at the moment & wouldn’t swap that for a bigger house.

I’m the sole earner in our house and the mortgage is 27.5% of my take home (I just worked it out!) no childcare costs due to DH being a SAHP at the moment. We are very comfortable but couldn’t afford as many holidays as you. We have one short haul holiday a year and one or two UK short breaks.

That's the trade off I guess and what I need to figure out. If we still have plenty spare then it should work out but I guess I need to do the maths. We have more spare than we likely need at the moment, so we could still be comfortable and have the dream house, but I guess I really need to get a spreadsheet together and plan it out to know for sure.

Don't plan on having kids.. love the freedom to travel to far flung places too much. My cat shall be my baby!

About 20% of our combined take-home pay (combined monthly take-home income of £4000 & mortgage of £794 pm).

I would say MNs is not very representative as most people will say 10% which isn't the norm. A lot depends on age as younger people won't have the equity.

Ours will be going to 29% when we move.

post tax

and of course 40% of 10k leaves a lot more than 20% of 3k

Roughly 10% for us

19% as of this month (new home) but it constitutes all of our borrowing.

About 10%, due to be paid off in November

I guess it's not as straight forward as I first thought.

Our mortgage will be going from around 650 to 1900 so it's quite a leap. It's a new build though so there's a premium for that. I do wonder if it's best to find something else and add the features we want, just not sure I could cope with the mess.

Or stay put, get a buy to let on the side and sell it in a few years using the equity on top. I'm far from an expert on all this stuff!