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?

Ours is about 10% of take home income. When we originally bought, was closer to 20.

It sounds like you dropped hours after your DC was born. Would you want to do that again after a hypothetical DC2, and if so what would the sums look like? WRT interest rates, could you port your current rate?

Haven't forgotten the late '80's when husband was bringing home £900 per month which we thought was pretty good. I wasn't working at the time as had 2 small children. The mortgage on a small 3 bed terrace then went up to £700 per month, leaving us £200 to support a family of 4. Ouch. I still have the ledger where we recorded the monthly finances so we could look at where we could cut back. Luckily we are now mortgage free.

Ours is about 2 x combined income excluding bonuses. Its on a 5 yr fix at 3.79%, 20 year term. We are age 39 & 40. We also have about 10% of the mortgage value in investments, we can't currently overpay more due to overpayment limits.

We are higher earners, so we generally overpay the max we can each year and save quite a lot. The current aim is to have paid off this mortgage in 10 years instead of 20.

We take home £9,700 and mortgage is £2900.

Our mortgage is currently about £180k. We bought our house in 2017 with a large deposit for £250k so we’ve not paid a huge amount of it yet.

Currently on a combined income of ~£70k and pay £800 a month for our mortgage. We’re hoping to move in the next year as we have three kids in a 3-bed semi.

Our house is worth approx £725k-£750k and we owe £479k so we have around £250k equity. Our mortgage is £2100 a month and we take home £7k. We have 3DC but fortunately very little childcare costs so this amount feels comfortable for us. It works out to 30% of our income which is ok but I wouldn’t want it to be much higher.

Different situation for me, bought house in 2007 October, £237000 joint mortgage with husband, about 25k deposit.
we split in 2016, still married due to house not being sorted but I’m gonna plough ahead with the divorce application as I just want rid of him and the house issue was always gonna be an issue anyway.
Husband pays nothing to mortgage, only every pad minimum CM, thru CMS in last few years.
i work part time in a school around my 20 year old daughters needs, she has autism, LD, anxiety etc, non verbal-I earn £952, mortgage is £1141.
Universal credit was a godsend until daughter left education last Aug, so I went from £1300 to £70.
i have to use daughters pip and UC to pay mortgage.

Monthly income £4000 approx depending on overtime
mortgage £1500
interest rates higher than should be in the current climate

Income around £80k single parent only just getting maintenance payments (don’t ask). Mortgage is £260k, I overpay by £150 a month so about £1550 instead of £1400. Property cost £400k yes in London but I had a decent deposit from selling the former jointly owned house.

edited to add 21 years to go

My mortgage is 835 a month but my child care is 450

Salary is £1120 per month and mortgage is £422 per month.

I also get UC, child maintenance, spousal maintenance and child benefit.

It's all relative.

£2k mortgage on a £8k take home is a very different ball game to a £500 mortgage on a £2k take home.

Same salary ratio though.

As long as it works for you and your outgoings, then go for it.

We have a similar household income and our mortgage is £680 a month, our house was bought with a mortgage of £160k (purchase price was £190k). Feel very blessed to live in a cheaper, but still perfectly pleasant, part of the country. Our house would currently sell for about £230/240k and we only bought 7 years ago. I can't believe how much things increase vs wages!

I'm reading with interest as I currently don't own a house.
I'm currently in a hmo with savings of about £200000. Its earning about 4% interest per year. Its not brilliant but I'm not prepared to put it in riskier high interest stocks and shares as I won't be able to sleep at night through stress.
My plan was to buy something in about 2 years once I've saved a bit more with maybe a small mortgage if needed.

The hmo isn't brilliant but it suited me as I work away during the week. But a couple of people have moved in recently who are getting under my skin. So plans may change.
I earn about £47000 so I'm hoping to possibly get a 2 year mortgage allowing me to buy a house for a maximum of £275000. But I've not done any calculations so im unsure if its affordable.
I'm 44. I want to own outright by 47 but it may be to ambitious.

Do and I bring in £110k between us and mortgage is £1300. It’s fine and that’s with three teens - we can still afford the school ski trip etc.

Where is this cheap but perfectly pleasant part of the country, please? 🥺

It’s all relative is a great point here

my friend earns a lot more than us but they have a bigger house, higher council tax and other bills and commitments and they don’t have a huge amount of disposable income- I guess a lot is also down to lifestyle choices.

Next time your deal is up for renewal you might want to look at first direct, they have unlimited overpayments.

Take home around £1900
mortgage £385 but service charges are £250

I live in South Derbyshire. Lots of villages here that are expensive but also a lot that are fairly reasonable.

Frankly, you are in an enviable position.

Even back in the 1980s it was normal for one salary to pay the mortgage and the second salary to pay for everything else. i.e. mortgage 50% of combined household income.

18% of our take home pay but that includes a £200 overpayment.

1300/5900. Low outgoings otherwise, no childcare. Early 40s, 18 year term

I think there's been a lot of creep on this. The standard used to be a 25 year term, 3 x combined income.

Now I've got friends who have 35 year terms and have borrowed pushing 5 x combined salaries. The sad thing is these aren't people desperately scrimping for the bare minimum. In all the cases I know, its people stretching to buy a fancier house with more bedrooms etc than they need, absolutely top notch decor, huge bespoke kitchens. These are also the same people with very expensive car leasing plans driving new range rovers, audis etc.

I do think people have lost all sense of living within means/accepting they can't afford everything. There's a massive raft of people living the Instagrammable champagne lifestyle off babycham wages with all of it on tick.

We did the maths on it, DH is an investment professional and we generate a better return this way as the rated were poorer on mortgages with unlimited overpayments.

We had the same situation on our last house & just hoarded up the surplus earning a decent investment return & paid off the lot once the term ended.