Mortgage

[littlebitmermaid]

What proportion of your salary do you spend on your mortgage?

Thinking of purchasing a new house as current one is too small and not in an ideal location.

Wondering what proportion of my salary should go towards a mortgage given the cost of living crisis. I'm thinking a fifth of my salary?

Any advice?

Do you mean net or gross salary? Sounds pretty low as a % of net salary to me, but then I live in London!

@Haus1234
Referring to net salary!!

Depends how much you need to live on - I'd start there.

With a high salary, it's easier to put a bigger % into mortgage because you've sit got plenty of actual cash to live off.

When you do your mortgage assessment though they'll get into it with you.

Also depends on your other costs and lifestyle priorities.

What is income and how many people?

Any other large costs like childcare, commuting or car payments?

Don't forget that interest rates might keep rising and a larger house might have higher bills for council tax and utilities. But if the 'more ideal' location reduces other costs due to shorter commute or a better insulated property or a location with cheaper council tax, you could see a saving there.

The amount people spend on things like food, leisure, clothes/personal grooming etc varies so much what is plenty for one person might not be enough for another. What do you prefer? A more expensive house that might limit the money you have left over for other things or a smaller one where you'll have more money left over to spend more freely?

Roughly a quarter of my salary goes on mortgage and 15% into pensions. I am a high earner and do agree with the point alwaysmoving makes. It does depend on the amount of your income and whether the amount you have left over to live on once mills have been paid. However, as a broad rule of thumb I believe around a 1/3 of salary being spent on mortgage is usual

Thanks all! I'm classified as a high earner but do have high childcare costs (who doesn't!). It's the interests rates that scares me as I'm not sure how high they can go. If we do get a new place I'd probably try for a 10year fixed rate.

My main reason for moving is to be in a commuter belt town and a bigger home (ideally detached) as would prefer to have a forever home.