how bigger percentage of your monthly incomings are spent on your mortgage?

[only4tonight]

We need a house now. We have sold our tiny 1 bed flat but to get a house in an area near enough to our childcare we are looking at doubling our mortgage. It would still be just under a third of our wages if we got a 5 year fixed deal. I think this is doable. But I wonder what is the norm?

When we first moved here it was about 40%.

We have a tracker mortgage, and interest rates have gone down obviously, so then it went down to about 25%.

Dh then changed jobs and got a pay-rise. It is now only about 15%.

I wouldn't recommend 40% - twas really hard to make ends meet. We lived for dh's bonus.

20% of net income.

I asked for percentage as we live in London. I know it sounds like we earn a fair amount but we are not rich by any stretch of the imagination.

Our net pay will be about 3k with the mortgage being about 1. That is if we fix it for 5 years.

We are just in the process of buying and ours will be 17% of our monthly income. We have a 15% deposit yet we still got refused a mortgage by one company we tried!

I would not fix your mortgage of the banks thought that interest rates were going to rise in the next 5 years they would not be offering the fixed deals.

28% and we are in a similar financial position to you. I don't find it an issue.

25%, but we are overpaying to try and clear mortgage in next 5 years.

That is interesting. We only have a 10 percent deposit so we won't be able to do variable but the shorter term fixed deals are significantly cheaper. You think we should head that way?

as fluctuating expenditure reduces risk (though of course, you may end up paying more , re-fixing meant exactly that for us..but we couldn't take the chance) fixed term is a good option.

If you are less worried about affordability ...paying more for a rate that is certain even though it may well work out higher is going to be a less sensible option...

You can't beat the banks the only reason they would offer you a fixed rate is because it's in their interests to do so, the bank of England is being told what to do by politicians that became clear 5 years ago. The interest rates will simply not rise above what is being offered as a fixed rate and it is extremely likely they will remain low for the next 10 years, the alternative is armageddon so much is riding on the housing markets recovery. I say all this as somebody who has paid £60,000 in interest I need not have done by fixing over the past 5 years, it's too late for me, save yourselves !

Wow, just worked out its about 12%, maybe I can afford to move somewhere nicer.....

Ours is now about 13% but used to be about 25%.
Unfortunately we have the 2nd highest council tax in Scotland, which is about £230 a month
We're 15 years into a 25 year repayment mortgage and don't intend moving unless something earthshattering happens.

Just under 25% interest only but we overpay while we can and to make it a 25 year repayment mortgage takes it to 38%

Yeah the bank has us over a barrel. They agreed to port our current mortgage (capped at 1% above base!) Bit any additional mortgage would have to be paid off in the same time period. As we are 8 and a half years in we could not possibly afford such a short term mortgage so they have us over a barrel and now we will have to get a fixed rate over a longer term.

The banks will still throw silly money at people but now they make sure they will profit much more if people can't pay.

We have set our budget 75 thousand less than what the banks would lend!

37.5%.
Wish it wasn't

About 20% on average, but I work freelance so if I have a bad month it could be more like 28%. We are also trying to overpay some months as we have a good deal at the moment so want to get more paid off while the going is good!

Somewhere between a third and half since I stopped earning. When we took out the mortgage it was more like a quarter. Its tight, but liveable. I don't plan to not earn for any longer than necessary.