What’s the new normal monthly mortgage payment now?

[rootsandwings89]

Just that really, with so much economic change in the last few years, what is the new average mortgage payment? I always used to think under £1k was good but more people I speak to are paying around £2k a month now?

is this because of interest rates or high property prices? Or bit of both?

I think houses are more money now and so people have to borrow more AND interest rates were low for quite a while which isn’t the case now. So probably a combination of these 2 factors.

So how much do most people pay? Is a £2k monthly payment pretty normal now?

Depends on where you live and house type.

I am in a 2 bed flat in London and fixed at 1250 for the next 5 years. Bought in 2019 for 392k. If i ever move to a slightly bigger flat, it would be 2500 for a 600k flat. Big reason why we are one and done

My monthly rate is £298. But we live in a tiny mid terrace which needed completely rennovating when we bought it 5 years ago (for 85k) and we live in a cheap housing area. Most of my local friends (in bigger houses!) are paying circa £800-£1000

That’s like a how long is a piece of string question! We pay £2400ish.

We pay £2000 but we overpay to try and get it down.

Nationally the average is around £1600.

@TallSturdyGirlis it really? We pay a bit more than that but I assumed we were outliers (London) - that’s extraordinary

Well lots of people pay £300 and some pay £4000. The median is about £800

Obviously there is no "normal".

People will owe wildly different amounts on their mortgages, from people down to the last £10K to people owing a million.

Then people will be on different rates - both due to loan to value ratios and also due to when they locked in their deal, and how long they locked in for.

It's a 'how long is a piece of string?' question.

Depends on so much including how long you have had the mortgage and how long it has to run.
Someone who has had a mortgage for 20yrs will probably be looking at and wondering if it worth going all out and clearing it altogether while someone who has only recently started will probably be looking at it bewildered wondering how they are going to manage.

I’m about to remortgage and mine will be £496 up from £385
but I also pay a service charge of £250pm

Mine is £2k a month on a three bedroom semi in the south east.

No one has any idea what is the average mortgage payment. Everyone pays differently according to how many years they have left and what the mortgage amount was in the first place.
We now pay £85 a month we have a 3000 sq feet house in the country. This is nowhere near the average or comparable to anyone else’s mortgage payment or house.
The only thing that matters is that it’s manageable for you.

£360 a month. Two bed terrace with a garden, garage and rear-drive in Cumbria.

£575 but I’m on 2.1% still.

£450, London flat, down from £800 as I remortgaged and paid off a chunk.

We had a tasty 1% rate for a few years - £760 or so.

Enter Liz Truss.

£1453 now. 5.7% or something. 😔

This. Plus the people who've overpaid compared with those who have saved/invested their spare money elsewhere. Plus different term lengths.

Also wider circumstances - if you're thinking about affordability, it depends what's leftover for other expenses, circumstances - family size, other significant costs like car costs, childcare.

Also what sort of lifestyle people want - prioritise their home, size, location, state of decor/quality of fittings or prioritise other things like travel, leisure, cars etc.

You're asking what is 'normal' in a list of random numbers between 0 and about £5k pm or more.

Silly thread. I’m 59 and have about 3 years left on the mortgage, overpay it so ours is £1360 but what does that tell you really?

Last week was £900 on a 3 bed semi. We’ve moved to a 4 bed detached and will be paying £2,000 a month. We’re in the South East

Mines 50% more now than it was 10 years ago. Eg if it had been £1,000 then it would be £1500 now.

That's on a mortgage balance now 10% higher (we've moved house). Most of the increases its driven by the interest rate mainly. In our area most houses havent risen that much, the only houses selling at a "profit" have tended to have had a big reno.

But my wage has risen by a similar percentage in that time, so it feels affordable. The only annoying thing is tax bands haven't changed enough, so I'm definitely paying more tax as a proportion.

In my town lots will be 3-4 k.

Impossible question to answer really as too many variables (area, house size, term etc).
FWIW ours is £1350 but likely to go up substantially in Jan when our 5 year deal comes to an end.

As PPs say there is loads of variation. We still have a 1.2% deal running and haven’t upsized when we could have done.

Maybe a better question is what % of your family monthly income goes on mortgage? Ours is about 15%