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

Thank you all so much. I have read all the replies with great interest, some very smart and savvy people on here!
I think we are probably both right in some respects - I still think we are fortunate on the asset/ debt ratio but you’ve made me realise that he is right about the sustainability of our outgoings. I think we will seriously look at ways we can reduce that debt further ahead of our mortgage rate ending, to put us in a more stable position. Saving just feels so hard at the moment with three young DC

We could have extended the term I think… but we are hoping to avoid it if at all possible!

We already have 21 years left on it.

I will be honest in that we are likely to get a/some lump sum/s in the next 10 years or so to significantly chip away at it, due to downsizing parents/ inheritance. We can pay off 10% of the original mortgage each year (so £52k) without penalty. I’m hoping/fairly sure we will have paid it off before the end of the term due to this.

In terms of the here and now, we’re being frugal, and have trimmed down as much as possible. We have a fairly strict budget and a lot of spreadsheets!

House value 525k
Mortgage 200k
25% of income

3 yrs into a 10 year fixed of 1.95% so have the security for it not to increase until about 70k outstanding

You are being unreasonable to ask this question because it does not allow for division by zero error.

House £400k or so, mortgage £120k or so. As a percentage of our monthly income I’ve no idea…DH looks after the joint account!

House worth £885k, mortgage debt £640k. Mortgage payments are 30% of income.

No other debt. £100k in savings.

Guessing house is worth around 360. Mortgage is 230 and around 25% of income. Would be fine if we were younger but we weren't able to buy until well into our 40s. We will probably be working until we drop.

Every time I feel stressed about it I remind myself I could be mortgage free if I had stayed with my ex. Suddenly the decades of work ahead of me seem like a joy in comparison.

House around £1M, around £50k left to pay. We overpay every month. Never worked out any ratios. Monthly payments are around £1500 out of combined net income of around £12k. We will retire almost as soon as the mortgage is cleared, with a very comfortable pension in our mid 50s.

House £280k (up North), mortgage £32k, 15% of my individual income but I’m paying it off next year when my rate rises. Currently 1.5% and I’m getting more interest than the debt interest with the cash in a savings account.

Our house is worth about €2m, , we owe €640k . Our repayments are €4k a month. We are high earners due to a successful business. Probably about 5% of our income. We are in the middle of refurbishing it so any spare money goes on that. Once all the work is finished we will start over paying on the mortgage, I'm a few years from 60 but won't retire until 70 which is fine. We don't have any other debt

Ideally housing costs should be no more than a third of income so you are close to that. I agree with your DH that getting it down before the rates rise is senaible.

200k?

200k?

I love this answer! Bloody good for you

House worth £220k, mortgage £73k, payments ~10% of net income. We bought it as a council house a few years back, so we're only about £20k into it (15 years remaining). We were overpaying until a couple of years ago, but stopped because we've had a seemingly-endless series of disasters which ragged our savings and now we're building it all back up again.

The interest should reduce significantly on our renewal next year, so we're going to keep the payments at the current rate to take a few years off the term.

My house is worth £210k, but have £165k left to pay. I’m in my 20s though.

Early 50's couple

Loan to value 15%
Percentage of monthly pay on mortgage 13%

Going to overpay 20% off the mortgage balance next week and another 10% in January :)

House ~£650k,
Mortgage £0k.
Early to Mid-40s

Previously held a variety of repayment and offset mortgages and spent a decade or more allocating every single spare pound to over-payments. Got it down to very little, held out for the end of the mortgage term to avoid early repayment charges, then finished it. Fantastic feeling. Nobody else knows, not even family or close friends.

We got into the habit of budgeting extremely carefully to pay off the mortgage, and have kept that going. I frequently fantasize about moving to a bigger house, having land etc, but I never want a mortgage again and try to repeat to myself the mantra: "Want what you have, not have what you want."

We did the fantasy in our late 40's. We were mortgage free in the suburbs but wanted to move rural for a bigger house and to get some land. Only needed a small mortgage to enable it (1.5x gross earnings) and we should have the 15 year mortgage paid off in 7 years.

Best move we ever made, physical/mental health is so much better and we now have a community we feel included in.

Very tempting when you describe it like that. I think I could be tempted to go for it, though maybe only once child finished with schooling, and if we still have the energy for it!

Yours would make me anxious 🫣

We're looking to be paid off in our late 40s having halved the term of our mortgage through overpayments. Similar house value give or take a few percent. Then we will double down efforts into pension savings instead of mortgage!

Currently early 40s, 2 young kids.

My mindset has changed massively. I used to want to overpay the mortgage but am now of the view that pension is more sensible long term.

Mortgage is around 52% of the house value and is large. However, we have the security that if we needed to we could downsize as we do have equity. My mortgage runs through to 68 but should have pension that will easily cover remainder from 58 (or whenever we can access).

What makes you anxious? I’m curious, not trying to be provocative as I feel quite good about it 🤣

My DH has a good life insurance scheme if the worst were to happen to him (mortgage paid off). We have lots of disposable income each month to save/have a nice lifestyle, and if we fell on hard times we could sell our house and buy a (small) 4 bed outright with no mortgage.

This is almost exactly my situation too.

This made me feel better!

House 900k
Mortgage 690k
Eeeep

Age 36
Repayments 27% combined net income (4.2% interest on current fixed)
300k in savings, decent pensions, incomes likely to rise before we remortgage as we will be out of the tiny children years