Deeply personal and slightly cheeky question about your finances

[squeezysparklyballs]

Can I ask what percentage of your household income, your mortgage is? Trying work out what is reasonable

Mines approximately 22% of my net pay, and it’s just me so one income.

It’s all relative though - if you pay 40% of your income and that leaves you with £5k for bills etc you’d probably be fine, but if the mortgage could be 40% and you’re left with £500 a month then you’d probably struggle.

23%

Hi ours will be 20% - that feels like a lot with bills of top but I read 34/35% is average / reasonable

15.5% of net household income, 11.3% of gross.

But we have some very high other outgoings and the mortgage is only based on my income, not joint as DH not able to have a mortgage.

It is 24.5% of my net income, 16.8% of gross.
We only have 55% mortgaged though as had enormous deposit.

I’m not sure as I’d have to convert currencies, but I wouldn’t think like that. We are considering buying a house that would mean a large new mortgage next year. How I will decide is : monthly take home after tax & pension is X. Then calculate
-Mortgage repayments for 25 year loan, food petrol transport etc monthly costs, other monthly costs (clothes amazon orders school play tickets Sunday brunch days out Netflix phones etc) , bills which aren’t monthly over the entire year and divide by 12 to get a monthly ... don’t forget anything here- mot, car insurance, council tax, other insurances, club fees, gas water elec,
Childcare- 2 in full time daycare for us.
And see how much that adds up to compared to income.
Then consider the future - we will never have more than 2 in full time daycare before school so that’s ok.
School holidays - no idea but subtract 1/12 of my salary from incoming to allowing taking a month without pay over summer or needing it for holiday care.
We will need a larger car, add car finance.
Another baby- add saving for mat leave and obs fees (not in the U.K.), allow for a year of only warning mat pay...
What happens if you go part time...
It’s a bit easier if you don’t have children. If you are comfortable paying the mortgage you can usually just get a bit ahead on it and adjust and manage by the time children come along.

I’m glad you asked this question OP. OH and I want to buy a house in the next 2 — 3 years and I’m not familiar with the UK system of mortgage financing. So 33% of net income is what’s considered safe in the UK or is it gross?

18% I think. We earn 6k monthly. Mortgage is 1.1k

33% of my single income.

When I got it %was higher (40) and life was tighter.

I still don't have as much flex for holidays etc as dual income friends or those who have owned their equivalent properties for longer but I do still manage stuff just in a more restrained manner e.g. Europe vs USA,

We just increased from 16% to 19% of our net income to pay for improvements. Hopefully not needing to borrow more and with improved wages should be down to 12% in 5 years time.

40% and things are quite tight. We are both currently working part-time for childcare reasons. If we both went back full-time it would be about 25%.

25%

27% of my net pay, 18% of my gross pay. I pay for a lease car through a work scheme so it would be about 24% of my gross pay discounting that.

5% but we're low(ish) income, low mortgage.

18%. Childcare is 20%. We'll start overpaying once DD gets her free hours.

22%. Interesting to see that that’s about average.

We live in a very cheap area of the country which is why it's so low!

Currently 24% but will go to 33% when I finish work. Things will be tight and ir won't be long term.

40%

Tiny but we've overpaid for years and put all our savings into house to get here. It's about 8 or 9% at the moment, and we overpay the same again.

15% but I’m a single parent, so things like child maintenance and tax credits help. When the kids turn 18 it will be higher, but the mortgage will be smaller.

22% of net income

45%

It was 42% on single salary after me divorce. I've recently moved because that made life very tight and am now at 24%. Much more doable (plus less toilets to clean!)

17% of gross joint income, 23% of take home.

We moved from down South to up north where house prices are much cheaper so was able to buy our house outright so answer is 0% of salary. This was a few years ago but if our situation ever changed and we had to move back, we could not buy our old house back in the old town as prices has raised there but not here.