How much mortgage to pay each month?

[erhsla14]

How much do you pay per month either as a figure or % of net income?

We are FTB and trying to decide what to do (used to paying a lot on renting, especially when living apart renting separately)

terrifyingly I spend 25% of my take home pay on my rent. That seems a lot. No childcare costs and I have DC 3 nights a week so just food etc. House and bills pre food cost me 30% of take home.
But I separated and didn't take a penny. a 50% share would buy my current house. I am taking 20% so a mortgage on the top up to buy a house this sized would cost 52% take home on a 2.5% rate.
I think that's distorted as I live in a very valuable pretty house but it's rental value is restricted vs price to buy.

They suggest no more then 30% of income on mortgage

same on other bills 30%

this leaving 40% for food petrol and other stuff

also to over pay if you van

we overpaid every month by 10% which over the years knocked years off the mortgage

Bought 6 months ago. Mortgage = 25%, all bills = 65% including childcare and fixed amount of monthly savings. Feels like a lot - we can’t save any more than we do at the moment but we’re lucky to be able to save at least even if not masses.

25% and I think it would be fine but it feels like a lot because we also have 25% going on childcare! Once that drops down then it will be fine I think.

We pay 8% of my take home pay. Wife's income not included. Honestly I think we are at the lower end of the spectrum.

I bought my home solo last September and it's 22% of my net income.

Currently 27% of take home but will creep up to 34% next year when we remortgage to take money out for various house maintenance bits and repaying FIL for the deposit.

Our childcare and credit card payments (will be fully paid off) will decrease by ~£600 though by the time we remortgage, which is double the increase in the mortgage so realistically we will still be £300 net better off. Probably split that 50:50 and do £150 to overpay the mortgage and £150 for extra savings.

So I’m in the process of buying and the new mortgage will be 43% of my take home pay which is scary and almost double my current mortgage.

However, I still have over £2k per month income, and no major costs coming. House is eminently resealable due to location ( very good primary and secondary schools) nearby, and some of my transport costs will reduce. I’m single but have a permanent job in public sector so relatively safe and have a globally attractive CV. Utility bills may actually reduce as a new build so energy efficient. I plan to overpay a bit as 50% of the mortgage will be up for renewal and I’m almost at the next banding.
It is just me so that does make a difference.

We bought recently. We pay 25% of our joint net income, which is around £1300 mortgage per month and a net income of roughly £5200.

I work part time, my DH works full time and we have childcare costs of £800 per month.

i wouldn’t be comfortable paying a higher % for the mortgage than we currently do because of the childcare costs.

On a dual income, about 15%. And watch out for the amount of money that disappears in tax. It's rather depressing. When DH and I study our payslips we see the amount of tax paid forcefully taken every month works to about 42% of the mortgage more. Our mortgage is less than the amount of tax we pay.

27% of net but it constitutes our only borrowing.

What? By your maths you were expecting household net incomes to be £2500pcm?

The ONS stat for median pay in April 2021 was £611/week. By the time you make than annual, deduct tax and make it monthly, that’s £2086 net per month. Make that two FT adults and you’ve got £4,172. I’m not going to do the maths for PT! But anyway, two average FT adults spending 20% on a mortgage would be £834pcm.

Did you mean net of things like council tax? Utilities?

28%. It feels ok but will feel much better when childcare costs (15%) go soon.

£500 per month isn't an unusual mortgage payment even for new purchasers in some parts of the UK.

33% of income. I'm in London.

I have quite a lot of discretionary income left.

£500 per month isn't an unusual mortgage payment even for new purchasers in some parts of the UK.

I guess it depends on location. I would say a high salary but low mortgage would be unusual for a FTB.

I'm having to buy out my STBXH and it will be 30% of net income. I'm nervous about it but have no alternative unless we sell the house. I would be insane to let it go if I can manage to keep it, as there's no way I could afford anything else.

However I have no childcare and no dependents.

27^

We pay 3x what we should and have done since start. House is paid off soon it's taken 7 years.

29% of our combined take home pay goes on the mortgage. We are on a fixed interest rate of 1.19% until late 2026. If we were getting a mortgage now with less attractive offers around and knowing what we know now about the cost of living I think we would have aimed for a bit less, maybe 20%?

Just over £6k

About 17% of take home, we bought 3 years ago as FTB (4 bed in the north). Household gross income of about 55k.

You wouldn't need to be on a particularly high salary for £500 to be 20% of net income though, especially not as a couple which purchasers increasingly are.

You wouldn't need to be on a particularly high salary for £500 to be 20% of net income though, especially not as a couple which purchasers increasingly are

Exactly. For a couple, two full time workers on NMW will bring in around £2600 pm and £500 is less than 20% of that amount.