How much of monthly income for mortgage?

[josiecat]

What do you reckon is a reasonable proportion of your monthly income to spend on your mortgage? I remember reading guides for it years ago but can't remember. Trying to work out if I need to go back to work when new rates kick in.

Depends on what it is I guess... £5000 from £1000 would be alot but £2,000 from £4,000 maybe not so bad. OVer 50% I would say is a no no, about 30% seems ok-ish I guess.

that was meant to say £500 from £1000

ours is about 30% of income, we wouldn't be comfortable with more - OTOH we know people who are getting to 55% and are now crapping themselves

Ours is about 25% of our joint take home pay. It was about 50% many years ago, and that was tough.

I think it depends what your income is, like LadyOfWassail said. Like the example £2000 from £4000 - I mean £2000 is still shedloads of money to live on so I can't see there would be a problem with 50% under those circumstances.

I couldn't believe it when I heard the average amount is still only 20 something percent, even with today's astronomical house prices. But I don't know if the measurement is from gross or net income, which makes quite a difference.

It depends on what else you have commitments for, if you have loans, HP or credit card balances to reduce then you have to factor that in.

I believe the figure is 40% but when they work out "affordability" they take into consideration all your debts (above)

2 couple could both be on the same joint income but how they spend it could be very different.

mine is about 55%

As others have said, your net income is what matters more than the %age, as food, petrol etc costs the same for everyone.

so if your net income is £8k per month and your mortgage is £3k, you're fine, as still have £5k for bills, food, petrol etc BUT if your net is only £4.5k with a £3k mortgage you'd be struggling.

on average it is a third of net monthly income