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Original poster

What proportion of your family income goes on mortgage/rent and childcare each month?

62 replies

NorkyButNice · 30/07/2008 19:13

Am not interested in any figures, just a percentage.

When we move back to the UK we're looking at spending about half our monthly income on these 2 outgoings, and I'm wondering if it's too much. We haven't agreed on a particular house yet to rent so now is the time to reduce our budget if I should!

OP posts:
cthea · 30/07/2008 21:50

Mortgage about 10% of my wage (v low mortgage rather than high salary), childcare about 50% of my wage, so much less taking into account DH's as well.

MrsTittleMouse · 30/07/2008 21:50

The problem with comparing with other people is that anyone who bought their house several years ago will have a -inducing mortgages. It will be more expensive to rent (but cheaper than people who bought in the last year or so).
Where will you be moving to? We're in the SE and we would have to live in a flat, a maisonette or in a dodgy estate to get our housing costs down any more.

PanicPants · 30/07/2008 21:50

5% mortgage, 25% CSA, 25% childcare. So just as well we have a low mortgage.

gemmiegoatlegs · 30/07/2008 21:51

about 30 per cent on housing and 15 per cent on child care (only for one more year - woo hoo!)

ByTheSea · 30/07/2008 21:53

Between a third and 40%

RhinestoneCowgirl · 30/07/2008 21:56

Currently about 25% on mortgage (surprised me it was that low tbh) and 10% on childcare.

This will change a bit next year as I'll prob give up work as childcare for 2 children will cost more than I earn...

bubblerock · 30/07/2008 22:03

0% No mortgage/rent & no childcare

hughjarssss · 30/07/2008 23:13

MrsTittleMouse - I agree completley. We also live in the SE and brought our house 18 months ago so our mortgage is very high.

But because of where we live renting a house the same as ours would cost just as much as a mortgage

Original poster
NorkyButNice · 31/07/2008 03:26

We're going to be in London unfortunately, and I need to live near Canary Wharf too for childcare/work reasons so extra expensive.

We do both earn good salaries but the costs of housing and childcare are such that I'm still not comfortable exposing ourselves too much in case we lose one income.

OP posts:
Poppycake · 31/07/2008 03:48

hi norky! We had that a bit - we moved to uk 2 years ago and based our mortgage on 2 incomes - then I found out I was pregnant - for lovely baby girl but to our finances! So for the past year or so it really has been tight - I go back to work on Monday - help! - which will improve matters, but obviously cranks up the child care cost.

So - on dp's salary alone, mge was half. With the free nursery places once dd1 was 3 life was much easier! Once I'm at work, the childcare (one in afterschool, baby in full time) will be about 5% of our joint after tax income and the mge 25%.

Because I was unexpectedly preggers, I didn't do the figures (not so wise as yourself ) but it did work out OK, if only just! But we did get the house we wanted - so we were lucky that way - which I probably would have vetoed had I known what was going to happen, but then would be much less happy now in a smaller house/less central location.

Is that help[ful?

MrsJohnCusack · 31/07/2008 05:52

6%
tiny mortgage and 3 heavily subsidised days at preschool

if we were still in London I imagine we'd be adding a 0 to that figure...

ninedragons · 31/07/2008 06:01

10% mortgage, no childcare as I am currently a SAHM.

MrsTittleMouse · 31/07/2008 08:11

Would income protection insurance be suitable for you? It's expensive but it seems to be the most comprehensive way of protecting yourself. I agree that it's scary to think about losing an income.

It sounds as though any reduction you make by living further from work will just be eaten up in travel costs. I sometimes torture myself checking out the enormous houses that we could buy if we were living close to relatives and not in the SE.

KatyMac · 31/07/2008 08:18

72%

Because I'm not earning much atm (credit crunch has hit childminding)

gillybean2 · 31/07/2008 12:08

Really think your question is impossible to get any sensible result from given that you have no idea what the overall income is. Maybe you should ask what percentage in relation to disposable income left after essential bills, mortgage etc perhaps?

I have no mortgage or rental costs so am very lucky in that respect. But reality is I can't afford any on my income and as stuck where I am though if I could afford to move I would be better off as it would reduce my travel to work costs and give me more disposable income.

My childcare costs are about 8% - school hols only (and that includes all my net income, salary, WTC & CTC & child benefit). I do get additional CTC to help towards these costs but it's still 8% of my overall income including this top up.

Council tax is 10% of my income.

Petrol & parking costs for work another 20% and that's not including the car running costs but I own my (ancient) car so have no other costs on it but will have to replace it (with what money?!) soon.

At the end of each month my disposable income after paying for all essential bills, food etc is in the region of £50-£75 if I manage to stick to my budget. And then school is always demanding a big cut out of that for school trips, photos, dinner money etc so in reality I have far less than that....

I do put about £20 a month away for emergencies though, but at the moment am overspent by £200 on my emergency budget so its gonna take me a year to pay that off. Lets hope I have no more emergencies!

I get a little money from my ds father which I use specifically on him though, music and swimming lessons, scout subs and camp and the like. So i'm fortunate to be able to do that.

So no way I could afford a mortgage or rent!

Basically you spend what you can afford to on things. If you're looking to buy in Canary Wharf area then you must have a fairly affluent lifestyle and good income I would assume and therefore your main concern is how much of your disposable income will be lost of you had to rely on 1 income only. There's always things you can do if you have to take a work break. Like getting an interest only mortgage for the time you are at home until you return to work etc..

There are some very expensive but also some much 'cheaper' housing areas not very far from canary wharf/tower bridge areas. So it all depends where you are willing to compromise either short term or long term...

Skribble · 31/07/2008 12:13

About 30% on mortgage

total bills including mortgage is about 65% on top of that I have petrol, food, clothes and kids activities.

PrincessPeaHead · 31/07/2008 12:19

12? 15? something like that

if you add utilities, cleaner, heating, insurance etc (everything else to do with running a house) it shoots up though

PrincessPeaHead · 31/07/2008 12:19

oooh council tax

all that mounts up

Kewcumber · 31/07/2008 12:26

MrsJC - I could learn to hate you!

EachPeachPearMum · 31/07/2008 12:56

of net income....
40% childcare, 23% on mortgage

claireybee · 31/07/2008 13:03

Rent is about 40% our monthly income. No childcare costs as am SAHM.

MuffinMclay · 31/07/2008 13:17

About 20% on mortgage, but we are overpaying it atm (would be about 10% otherwise). Nothing on childcare.

theyoungvisiter · 31/07/2008 13:20

of income post-tax, about 20% on mortgage and about 15% on childcare - used to be about 30% on childcare but we changed nurseries when DS turned 2 and the new one is sooooooo much cheaper.

mumblechum · 31/07/2008 13:20

0% childcare
40ish % mortgage

uptomyeyes · 31/07/2008 13:27

CHildcare and mortgage combined take up 45% of net income....feels a lot more.