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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

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

112 replies

ErinAndTonic · 08/04/2022 09:29

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!

OP posts:

princesspq · 09/04/2022 08:45

We are decent earners and pay about 20%, i think the monthly payments are high compared to anyone else i know but we can afford it, at the moment we are prioritising our disposable income on getting things for the house each month and decorating, however if we wanted we could afford holidays. Do you mean you would be paying 16% of you sole earnings? What percentage is your husband's and how do you work out holidays? DH earns slightly more than me (60/40) but everything goes into one pot, and i feel 20% is affordable

LoudSnoringDog · 09/04/2022 08:48

22%

BernadetteRostankowskiWolowitz · 09/04/2022 08:49

Our mortgage is 14% of after tax combined income but we overpay so its more like 17%

TheFlis12345 · 09/04/2022 09:07

Our joint income is very similar to yours will be OP (around £115k). Our mortgage is £2100 a month so nearly a third of take home. We don’t have children either so still have plenty of disposable income. We spend quite a bit on food and drink but still easily save £2k a month which could be your holiday fund.

OrangeIsTheNewRed · 09/04/2022 09:36

About 30%, after tax.

Chely · 09/04/2022 09:39

Under 15% now, we're a single income household. It was around 30% when we had 2 incomes but we were less comfortable then.

Teeturtle · 09/04/2022 09:41

It has varied between about 10-33% of total household income, depending upon whether both or only one of us was working. Was quite a stretch at the 33% end of the scale.

BulletTrain · 09/04/2022 09:43

20% after tax. I'd go higher if we needed but our 3 bed townhouse with office is plenty big enough. The only reason we'd be moving would be to get a garage/be detached. If you need more space do it - don't if you don't! Not right now given the market.

Ilostit · 09/04/2022 09:46

About 8% but we have school fees too! If I ask those on as they’re like 2nd and 3rd mortgages it’s 28%!

MrsR87 · 09/04/2022 09:47

Ours is about 10% of our net dual income. We overpay it though so we end up paying about 15% most months.

We had DS in lockdown and before that we did big holidays in the Caribbean and a few weekend breaks in Europe and Uk.

Now we have DS, childcare is more than our mortgage a month and when the next one comes along at the end of the year there will be a period of time when childcare will be all of my net wage!

RussianSpy101 · 09/04/2022 09:47

We have a similar lifestyle to you @ErinAndTonic at least 3 foreign holidays a year.
Our mortgage is 10% of our monthly net income.
We have 3 children.
We didn’t borrow as much as we were able to as we were previously mortgage free and are quite debt averse so didn’t want to take on a huge amount as we enjoy our lifestyle too much to sacrifice any of our holidays. We are also lucky to live in an area where houses are fairly cheap so we have a fairly big house in a lovely area for a fraction of the price it would be elsewhere.
No other debt .

DarleneSnell · 09/04/2022 09:49

19% of net income. Childcare bill isn't too far behind!

Kerberos · 09/04/2022 09:49

About 20% which is mainly because we are trying to pay most of it back before DC1 heads to university in about 18 months. We are mid 40s, and will probably refinance it to lower when she goes so we can support her (followed by her brothers).

650 to 1900 would scare the living shit out of me right now. We're heading into choppy waters so if you don't hate where you are at I'd try living for six months paying the 1900 off your current mortgage to see how that feels before you take a decision. This house sounds like it has your heart, but there will be others that are equally great.

DemonCat · 09/04/2022 09:55

30% of net income, one earner, reasonable income. In the same boat as PorkPies really. Suits my lifestyle at this point of my life but my younger self would have wanted more holidays.

89redballoons · 09/04/2022 09:59

25% of net income. Childcare is then another 12.5% but that will go down when we get the 30 free hours later this year.

I still feel like we're pretty comfortable. We haven't had a holiday abroad since before we bought the house but that's also because I don't fancy it with a toddler and a baby in tow. We had a UK holiday last year and can afford days out, treat food, new clothes etc.

I think the actual amount you'll have left over as disposable income after your fixed outgoings probably matters more than what your outgoings are as a percentage.

FrankLampardsBrokenHand · 09/04/2022 11:27

It was about 8% of income. But we purposely chose a cheaper house that we could pay off quickly.

Lovinglife45 · 09/04/2022 12:17

35%
Cannot afford holidays abroad or in UK (well not anywhere I would class as decent).

Dc have constant needs (don't they all) so we focus on these - clothes, shoes, uniforms, socialising, school events.

No savings which keeps me awake at night and is the cause of my anxiety

Thankfully we pay into pensions and a little is tucked away for dc.

AppaTheSixLeggedFlyingBison · 09/04/2022 12:34

After tax it's 35%

Gladioli23 · 09/04/2022 12:39

I have a low compulsory payment on my mortgage (less than 20% of my take home). I overpay so it sits about 30% in the end.

I can afford several holidays a year but they aren't usually long haul.

I have been debating a similar move where I double or triple my mortgage but with the inflationary increases etc currently I just don't feel like the risk but I am a) on my own and b) very prudent.

PurpleFlower1983 · 09/04/2022 12:39

18% of my salary after tax, husband is now self employed/SAHD so his income has halved but we have quite a lot of disposable income. We were going to move but decided against it for now and with all the increased I’m glad we did. We have a nice lifestyle that I wouldn’t want to compromise at the moment.

Lovinglife45 · 09/04/2022 14:02

Ilostit
You must be high earners if your mortgage and two lots of school fees equates to only 28% of your monthly income.

VerifiedBot2351 · 09/04/2022 14:12

50% of my pay, which is 25% of our total income as a family.

Pootle40 · 09/04/2022 14:38

Less than 15% of our net pay.

sophienelisse · 09/04/2022 15:19

It should be 1/6 not sure what is in in a percentage but I'm making over payments whilst I can so it's about 1/3rd off my salary.

DrManhattan · 09/04/2022 15:30

0% mortgage free. I am considering moving but not sure what is gonna happen with interest rates so don't want to get stuck with loads of debt.

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