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Original poster

How large is your mortgage?

34 replies

chuckiecheese · 03/09/2018 13:16

Currently mortgage free but looking to move house in the next year in order to buy a 'forever' home. Our house is worth between 350-400k

To do so we would need to take out a mortgage, DH wants to go up to £200k but I am worried about this & want to take less.

Wondered what 'average' household owes in mortgage! Grin

OP posts:
grasspigeons · 03/09/2018 13:20

It's meaningless without salaries and deposit size.
Our mortgage is a third of our income each month

Babyroobs · 03/09/2018 13:21

we don't currently have a mortgage but would like to move and that might involve taking out another 100k. I also feel very nervous especially after being mortgage free for a while. I think it depends a lot on your earnings, job security, your age etc. We are early and mid fifties so it is worrying although we could probably afford it.

PicaK · 03/09/2018 13:21

We sort of did a similar thing.
Can't tell you how much we love the new house - it's amazing to have more space etc.
Like you we still have good loan to value and we are very clear that we may have to downsize in retirement - but honestly the benefit we get now as a family makes the increased "debt" worthwhile.

happyasasandboy · 03/09/2018 13:22

As the previous post says, it depends on your salary, deposit size (to a lesser extent) and age.

Smarshian · 03/09/2018 13:24

We have recently moved into a house we plan to be in for 15 years or so. Our mortgage is circa 230000. We earn around 85000 between us and are both 30 though so not too worried about large mortgage.

SoyDora · 03/09/2018 13:29

Well the actual amount is irrelevant. We have a fairly large mortgage, fairly large income and can afford it.
Can you afford the repayments?

CountFosco · 03/09/2018 13:33

We are in our late 40s and have a bigger mortgage than that. It's ~2.5x our salaries, we spend

Original poster
chuckiecheese · 03/09/2018 13:51

Currently a SAHM, looking to return to employment in next year or so.

DH earns 100k at moment

If that helps Wink

OP posts:
Rebecca36 · 03/09/2018 14:03

Our mortgage was paid off in 2005 but we remortgaged a few years ago so is currently £225,000. Both now retired so easily managed out of pensions.

How much deposit do you intend to put down on your new house? On £100K you could get a mortgage for at least £325,OOO.

Racoon100 · 03/09/2018 14:10

You should easily manage a 200K mortgage with a 100K income.

For context we earn roughly 80K and have a 230K mortgage. We manage fine, have enough to be able to both save and have disposable income each month for going out and holidays.

Chewbecca · 03/09/2018 14:15

Banks don't use the 3x salary or 2.5x joint income guide anymore as it was too simplistic but I still find it a decent rule of thumb, as long as there are no other big outgoings to consider (school fees, child maintenance, that sort of thing) then £200k on a £100k salary should be comfortable.

TheCag · 03/09/2018 14:29

Our current mortgage is very close to being paid off. We are making plans to move and will then have a mortgage 3.3 x our income. It’s daunting but I’ve budgeted to death and we won’t be overstretching ourselves. Monthly mortgage payments will be less than 25% of our income. We know the house we are buying and have all the info on bills etc; it’s a lot bigger than our current house, bills are at least double what we pay now, in some cases triple. So be aware of those extra costs and ensure you include that in your budget planning.

Original poster
chuckiecheese · 03/09/2018 16:17

Really appreciate people sharing, thank you Smile

OP posts:
SleepyMcEdie · 03/09/2018 16:20

Ours is 3x our joint income and we are early 30’s. It takes about 20% of our take home pay.

isabella2 · 03/09/2018 16:33

Ours is just over 3 times our combined salary and repayments are 22% of take home pay (though we overpay). We are late 30s and have 25 years left on it but hope we can pay it off in 20 or less.

explodingid · 03/09/2018 16:34

1/6 of income.

Lazypuppy · 03/09/2018 17:36

Our mortgage is £200k, when we buy our next house next year it will be £300k. Then we don't plan on moving again so will have it for 35 years and hopefully overpay to get it down quicker

Dragongirl10 · 05/09/2018 22:43

Fairly spectacularly large by most standards and interest only, but at a very good rate....We have done this several times over 16 years, each time adding lots of value to each flat/house.....

Its not for the faint hearted or financially disorganised but has amassed a lot of equity.

thatawkwardsilence · 05/09/2018 22:50

Where do you all live ? They really sounds cheap or did you have lots of equity to put in or you've paid off a lot? Mine is 300k I'm in the South east and we out in a large deposit. Still 22 years to go !

Flatasapancakenow · 05/09/2018 22:53

We recently moved into our dream home. £330k taking up 16% of our take home pay. As PP said just be aware of other costs. Our rates are high, and our house and life insurances doubled after the move. We put down a large deposit on the house, but stamp duty was massive. I'm late 20s, DH is early 30s.

LaPufalina · 05/09/2018 23:01

Ours is about £200k and costs us £933 a month, on a £500k house. Take home >£4k so less than 25%

Haireverywhere · 05/09/2018 23:04

We pay 28% take home pay but other costs went up as well as mortgage as it is a bigger house.

blue25 · 05/09/2018 23:05

170k on 500k house. Overpaying as much as possible as can't wait to be mortgage free!

witwootoodleoo · 05/09/2018 23:15

We live in London and our mortgage is eyewateringly large. But due to good luck with previous purchases our LTV is quite low so we have a decent rate. It works out at about 1/4 of our joint monthly net income but we are both quite high earners.

headinhands · 05/09/2018 23:44

Your op is pointless. It's like people who ask 'what time do you go to bed' when it reality there are so many factors determining that and mortgages.

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