What percentage of your household income is your mortgage?

[celiastjames]

Just that really.

Looking at moving house and upping our mortgage significantly. Was going to ask how much disposable income was enough! But realise that's way too variable, so a mortgage cost as a percentage of monthly take home seems more insightful!

This increase would take us to about 35% of our income, just on our mortgage.

9.6% but we live in a very low cost of living area. Also our 5 year deal will be up in 1.5y time so who knows what it will end up going up to.

8%

Our basic repayment is 14% of our income but we're overpaying the maximum we are allowed which takes us to 33% of our income. We have two children but no childcare costs and no other debts or outgoings. We live fairly modestly and squirrel money away for Christmas, my old car and for rainy days.

Plus you also have to account for other costs and lifestyle expectations.

If you have car payments, child care, big commutes, larger family, larger house with higher bills, want to be able to spend above average in the supermarket, on holidays or other expenses without feeling restricted then what is manageable looks very different to a childfree couple in a modern city flat with tiny bills that's walking distance from work.

But what you've said is likely to easily pass lender affordability tests.

20% of our take home pay, we over pay slightly but only by about £32/month

My half is 33% of my take home and DP’s half is more like 10% of his. We split bills 50/50. After mortgage, I’m left with £2k. We live SE and it’s tight on my budget.

23%

Ours is now 10% of our net income. So £550 per month.

As PPs have said, whether it's manageable depends on your total take-home (and outgoings).

30% as £3k vs. £9k earnings, leaving £6k is a very different ballgame vs. £500 mortgage, vs. £1,5k earnings, leaving £1k...

Ours is 25%. It has gone up £350 recently 😫leaves us with £3000 for everything else.

Ours is 13% flip side our nursery fees are 38%!

So it really does depend on what is going on in your life to if such a big jump is affordable long term.

Sorry I don’t mean to derail your thread but I’m sitting hear shocked… I’m in private rented and my rent is 50% of my take home! No wonder I’m poor….😱

I think these answers are probably quite atypical!! Mine is 28% leaving £2500 for everything else, def very tight if you want to run even the cheapest car. Never anything left over for savings.

Ours is 25% at the moment, and will probably jump to around 35% if we don’t get any pay rises in a couple of years when our fix ends. As that will also coincide with DD going to uni, things will feel tight I imagine!

30%. But we have no childcare costs and still nothing left over to put in savings. Don't know where we're going wrong. Oh yes, forgot we pay £180 pw rent for our son!.

33% with overpayment

23% contractual, just under 27% with overpayment.

After monthly expenses but excluding annual expenses (car/home insurance, MOT etc) we have about £2.5k left over. That also needs to pay for ad-hoc bits like holidays, gifts, clothing and other stuff.

The percentage generally falls over time because the mortgage cost stays relatively fixed but salaries increase. So someone who bought 20 years ago might be paying 10% of their income but someone buying now with a 10% deposit probably won’t be able to do that.

I think the best way to look at it is to consider whether life will be affordable on what you have left after mortgage payments and then build in a contingency for interest rate increases.

You can also see your mortgage a bit like saving- it’s not necessarily the best thing financially to have a really low mortgage if you can afford a higher one because your house will probably increase in value over time and this usually outstrips the cost of the extra interest. There are of course other ways of saving which might work out just as well but having a high mortgage does to an extent lock you into accumulating equity.

Ours is approx 29%.

Ours is 22%, which includes our mortgage overpayment. How much are your other outgoings? Will you be able to save each month?

5%. We’ve been overpaying to get rid it of though, so we’ve only got a small mortgage left.

🙄

About 29%. Feel low to us as our London rent was far higher than this!! The amounts matter more, you need to make a list of every expense, to see how you’d have left for saving and non essentials. And consider what would happen if you / your partner couldn’t work.

23%
leaving us with 7.2 k

Ours is currently 19%, going up to 24% when we remortgage at the end of the year.

Judging by percentage isn't a great idea though, it's more about how much spare cash you have each month in actual £.

We have a significant amount left over to pay everything after our mortgage so we have no worries. And that includes expensive nursery fees so we’ll be even more comfortable in future. But if we were left with half that after mortgage, we’d be in trouble even if it was still 24%.