To ask what your mortgage debt is proportion to your assets

[Bearlionfalcon]

For example our ratio is 3.5 assets to 1 debt.
ie. We own a house worth 700k but we have 200k mortgage debt left to pay off.

Our mortgage cost is currently about 25-30 per cent of our income. Expected to rise when we renew our mortgage but thankfully we have another year.

I think this is a reasonably fortunate financial position to be in, my DH thinks we have a mountain of debt and we’re about to be in terrible trouble when rates rise etc so should put all our money/ efforts/ savings into reducing that debt.

Who is right??!

YANBU - me
YABU - DH

house worth 240, mortgage 140, mortgage 20% post tax salary. Only other asset is pensions and savings

Owe 185k on 850k house. Mortgage very large part of income in current job. Value has gone though roof in 15 years. Will move somewhere cheaper in a few years

Roughly 6:1 mortgage is less than 20% of my net income (because I bought years ago)

House valued at approx. £700K but mortgage recently paid off. We had been trapped in a self-cert mortgage because DH was self employed, but it had become a real headache. A lot of self employed people are also similarly trapped and virtually unable to re-mortgage at better interest rates.

Mortgage: £340k outstanding, Value: £775k
Our mortgage is 29% of our take home pay. It goes up if you add council tax, property insurance and utilities obviously.

Have two nice vehicles paid off and circa £80k in savings but it’s ear marked for university (for 3DC and 2DSC should they want to attend in 8-18 years). We also both will have very nice pensions.

I grew up incredibly poor so sometimes when I feel like I’m behind or can’t afford a holiday etc I remind
myself how lucky I am now.

5:1 House value to Mortgage debt, 1:1 income to mortgage debt, mortgage payments about 30% of my monthly income, all paid off in 6 years. And I have a vehicle that would pay off about half the outstanding mortgage capital.
I am very fortunate, even though I would love to be shot of the mortgage quicker, but that is what a divorce in your late 40's does to your finances.

House: £140,000
Mortgage remaining: £1960
Ratio thing: 70/1
Mortgage as % of income: 0.8%

I realise I'm very blessed to be in my position.

Our house is valued probably around £800-850k and we have maybe £400k left on the mortgage. So debt and equity about 50/50. We have no other debt (no loans, no car finance).

I think we’re in quite a good financial situation, late 30s/early 40s. I couldn’t even guess what our combined income is as self-employed so it’s not a set salary every month, but money is never tight and neither of us needs to work FT.

We are certainly better off than our parents were at the same age.

House is worth about £475k (very average 3 bed semi, but outskirts of London), mortgage £315k & 35% of post-tax income.
We're also in the childcare years although thankfully this has reduced a bit now.

Paid mine off a couple of years ago but I would also be looking at how long is left on your term and what other debt do you have.

So if you only have that debt, and it will be gone in 8 years (say) that is a lot better than that amount, plus tens of thousands on CC and maybe car loans on top, and your mortgage still has 20 years to go.

I will be an outlier here but husband is right in my opinion. Who knows what the future may bring and paying down debt gives certainty. If your mortgage will be more than 30% of your income, then that will be quite high. A 3% rise in your interest rate for the £200000 outstanding when you renew will lead to you paying an extra £6000 annually in interest charges. It might be worth you calculating the percentage mortgage payment spent on repayment Vs interest now Vs what you might pay in a years time.

We have always overpaid our mortgage and will save many tens of thousands by doing so. We retain a small amount on our mortgage to avoid triggering early repayment charges. Compared to what we would be paying in interest had we not overpaid, we are saving £7488 annually in interest right now.

To answer your question:
Age 38.
House worth £520000
We pay 0.028% of our take-home income on mortgage.
Because we have overpaid mortgage, we are able to save about £6700/month but our total in ISAs between husband and I is about £32000 due to overpaying mortgage so much recently.
We also have £310000 each in public sector pensions.
Ratio of debts to total assets: 1:411498.
Debt to housing asset (or liability depending on how people consider housing): 1:181184.

House 1 million ISH mortgage 100k ISH

Fed up with paying it off and paying into pensions. So not having an extravagant life. Hope to make up for this before I die 😂

Our financial situation has changed a lot (for the worse!!) since we bought the house 10 years ago. Previous income was at least £2k pcm more take home. Live in SE/commuting to London. We are late 30s/early 40s.

It’s now worth £700k
Mortgaged: £275k

Our rate has just jumped from 1.49 to 3.89%… so now % of take home: 43% of take home in a non overtime month, 35% in a month with lots of overtime.

No other debt. £20k in savings.

It’s tight, I wish the % was less… but if we were renting it would be several hundred more pcm.

Depends on your age too. If you’re 25 and your salaries are likely to increase this is an amazing position.

If you’re 70 and desperate to retire it’s less good!

This is interesting, what is your rationale for not paying off the mortgage if you don’t mind me asking? Do you offset?

Sorry you’re absolutely right. We are both around 40 and we have 3 primary age kids

This is I think the boat we will be in. Were you offered any other options like extending to loan term to make it more manageable, and did you take these options?

26% debt to value. Mortgage costs about 16% of our outgoings. I’m 40. 12 years left on mortgage. Currently on 4.3% interest, but who knows what the rates will be when my current term is up?

House worth £1m, mortgage remaining £229k, repayments at new higher rate are 23% of income. But I’m 50, don’t really want to have this high mortgage anymore. But then the plan is to downsize in 20 years when I retire and get DD on property ladder. So it sort of makes sense.

Mortgage is £240k house worth around £550k

mortgage payment is around 25% of income.

40's, outstanding mortgage is about 20-25% of value but I have savings around 60-70% of outstanding mortgage.
Not paying that off the mortgage yet due to:

1. Early repayment charge drops in a few months
2. Savings currently earn a similar amount of interest
3. Want to have a bit of a savings back up for emergencies and to see how my budget looks once DC is at uni

Interesting as I'm older with a mortgage and will downsize pay it off by moving somewhere cheaper. House worth £1.4m. Mortgage £324000.reate ends next November so will move then and you best moves out for university. We have 11 years left on it. We cnt extend the term to make it cheaper as we are both in our 50s.

I’d be uncomfortable with more than around 25% of income for mortgage I think.

Oh this is impressive, I think my husband would love for us to be more like you!

House worth about £1m (London), £76k left on the mortgage. Repayments are about 10% of net income. We’re in our 50’s though so been paying a mortgage a long time. Also benefited from both buying our own London homes before we met when prices were (relatively) cheap, so 2 x decent equity when we bought together. The figures weren’t so healthy in our 30’s and early 40’s.