How much is your mortgage in relation to salary?

[wildflower93]

No-one talks openly, honestly and transparently about money so I thought I’d ask strangers on the internet.
How much is your mortgage in relation to your take home salary?

I just thought it would be important to get a range of anecdotal opinions.

I’m currently looking at buying our forever home. We were looking in the region of 400-450k. However the interest rates have suddenly hiked the monthly payments to over £1700 a month from the £1380
we were expecting.

We are planning to cut the absolutely maximum monthly payments to £1380 which would be a £380k house.

My partner and I bring home £6200 combined after pension, student loan repayments etc. it will rise to £6550 in September when I’m back at work full time. For reference- this will be a combined income of around £110,000.

Our house has sold and we have £97k equity. We have no savings (maybe £1000) as we’ve had a lot of work done to the house over the last few years- and have spent the remaining few thousands of our savings getting it ready to sell. We are looking to have 10k left ish once all is completed.

Our mortgage is currently £700 ( 3 bed semi - North West)

DS is 3- childcare costs are £19 a month as he’s now in preschool.

We have 17 months left on a loan we pay £250 a month for (new roof).

Is a 390k house doable or am I insane?

Easily doable, my sister and BiL have just taken out a £400k mortgage because that’s what it costs to buy where they are, I think you will be fine!

Our repayments are 25% of our net income, we commit 30% as we like to do an overpayment.

We have an £800k mortgage on a combined income of about £165k. It is huge but was what we needed to borrow to buy a house (London). We had a deposit of 30% so are on an okay ish rate.

About 20% of my take home.

Not that unusual I’d imagine - we only brought in around 90k and got a 400k flat 5 years ago (5% deposit) we did get a long 37 year term though to make the repayments lower each month

we do earn more now and we are down to owing 80% back already from 90% in the beginning

rent would be way more that this so I feel like it is what it is ! 🤷‍♀️

Our mortgage is £700 per month, combined take home pay of £6310. No childcare fees anymore but a DC at uni which can make things feel tight!

Ours is 15% of our take home pay

So our mortgage is £365,000 (house worth about £415,000, we did some additional borrowing for home improvements recently). Late 30s, mortgage is £1800 (but 30 year term! Hope to over pay when the kids are grown, thankfully had our kids young!) and our combined take home a month is currently £8200 a month. Our income was probably nearer £7000 when we took on this mortgage though, and we weren’t concerned.

Kids are teens now, no childcare but at the uni saving stage and preparing for driving lessons etc!

This is our long term home, live in a cheap(ish) area of the UK.

OP how old are you and what term are you looking at? Any more kids?

£185000 mortgage- £1025 a month with 65% equity. Mid 30s and it's about 20% of our take home pay which felt fine until nursery fees.

I feel poor

£980 per a month mortgage

£2150 per a month salary (£500 bonus every three months)

I have a company car which helps

But two teens to look after and no money from the ex to help (or nights off)

Having to buy them out the property then take over all the costs did not help (they now refuse to work so don't financially help)

Hi! 33 and partner is 35. We’re looking at a 35 year mortgage. We are hoping to have one more child.

I’ll be on about 55k in September I think and my partner is on 63k. I have an additional role that brings in 5k a year too. I think I’m at the top of my career and my partner is at the start of his. He is taking on an additional degree so will likely exceed 80k over the next few years.

i don’t drive - I probably never will due to significant OCD- and we have one cheapish car and my partner also gets car allowance for this.

22% of income, down from 25% because DP has just got a small pay rise.

He's racing to pay off his student loan too so that he has an extra £200 per month.

@wildflower93 thank you! So my unprofessional opinion and experience is that with property it’s worth pushing yourself for, from bitter experience; it can be an expensive mistake to hold yourself back, moving is expensive! In my honest opinion with your salaries, partner’s projected income, equity etc, I’d go for it. But I’d get a spreadsheet, and stress test your finances, add childcare costs, maternity leave, some interest rate rises and see how that goes. Remember you’re in the thick of it right now, you could go for an even longer term to make room for childcare costs, so long as you’d be disciplined to over pay when those costs go.

Ours is about 36% of our net income.

33% of take home pay. Used to be 44% before recent change of job which was tight but we are finding 33% fine. About 42% on remaining monthly costs (commuting, bills, food, childcare, kids’ clubs etc). Of the remaining 25% about 3% goes on saving for predictable annual expenses (insurance, mots etc), another 3% for saving towards Xmas and birthdays, 3% for unexpected repairs, 6% towards holidays, leaving 10% for longer term savings/ mortgage overpayment.

29% which is comfortable for us as no child care costs etc. Will be gone in 5 years (we are a lot older than you op!)

23% of joint income and it’s a stretch

Bare in mind it won't be just your mortgage that will be higher.
We moved from a 3 bed semi to a 5 bed detached. Our mortgage only changed from £600 to £750 as we benefit from a local covid housing bubble which added £80k to our house value in 18 months and we moved somewhere unaffected.
Our council tax went from £140 to £260 and is now £300. Our gas bills went up by £60 a month, are home insurance went up £100 a year.

You need to do a full assessment of how all your bills will change with the proposed houses before working out if its affordable.

Our mortgage was 13% of our take home pay but I was made redundant a year ago and am now on a career break having had my second and it is now 22%. It was 6 weeks between having a discussion with my line manager about targets for the following year so I would be eligible for promotion and my last day of work! 2 weeks after Christmas they announced the redundancy and I left work they say I found out I had lost my job 3 weeks later. In my field there is a new company each week announced redundancies or closing completely so do pressure test for loss of income too.

Sounds doable. Our mortgage is 1150 a month, combined take home is about 5500. We feel fine with that.

Combined household take home after tax / NI / student loan / pensions etc - £8000.

Monthly mortgage payment - £1,500, so about 20% of take home.

£300,000 mortgage and 50% equity in the house. 30 year mortgage fixed at 4% for the next 5 years.

Around £1,000 each month for nursery fees currently as well. Hoping to use some of that to overpay mortgage once DS starts school.

Combined income of £5.5k

Mortgage is £1340.

House value £475k. We have £275k left.

When we moved to our last house our mortgage repayment was almost 75% of our combined take home pay. It was very difficult for the first four or five years, but became more manageable as we were both promoted and interest rates reduced. This was at the time of very high interest rates, and our mortgsge rate went up to 18% between exchange and completion on the house. It came down to 16% reasonably quickly and then stayed at around 15% for some time. We couldn’t afford holidays, cars, new clothes, or expensive nights out but we both felt it was worth it to get the house that we wanted at that time.

I think your numbers are fine as you are looking to borrow less than 4x your combined income for a 390k house given the equity you have from your house sale.

Minimum monthly income is 7480, mortgage is 1900.