What % of your income do you pay on mortgage?

meandu229

meandu229

meandu229

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After a house falling through we are having trouble finding a house in our original budget and are thinking of pumping it up a bit. People on the internet seem to suggest no more than 30% of your monthly income as a ball park. I'm looking at bumping ours up to 27% of our joint income (after tax).
Does anyone pay more than this?
 
20%, it could be as low as 15% but we are overpaying to pay off a 25yr mortgage in 16yrs.
 
I suppose it depends on circumstances, as first time buyers generally pay a higher percentage than others.

Number of wages contributing to the mortgage also has an impact. Personally as a 1st time buyer, single income I pay 26.5% of my wages to my mortgage (33.3% after tax). That's no overpayment.
 
Ours is offset, so it's pretty variable (and basically, as much as possible).

That said, the 'standard' payment that they use for illustration is probably about 15%. We're looking at moving house in the near future actually, and the sort of mortgage amounts we'll be looking at wouldn't take it above 20% I don't think.
 
26% of income net of pension, tax, and student loan deductions as a first time buyer under the help to buy scheme. Likely to increase to around 35% in a year and a half when my fixed rate period runs out.

Bit steep considering I live alone so I have to pay all other bills too, but once my student loan gets paid off in two to three years time it should fall back to around 30%.
 
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20% of gross pay which is 28% of net pay

That's if I get accepted, this is based on first time buyer with only 1 income contributing.
 
MassiveJim said:
27.6% of joint wage
43% of my wage

Missus is pregnant so that 27% is due to be higher soon when she takes maternity leave :(
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Tell me about it: my wife has been on unpaid maternity for 3 months (she took a whole year, pretty much full pay for 1st half, then SMP for 3, then nothing :eek: ), so that mortgage is up at around 50% of net!

Thankfully, she officially started back at the end of June (though off on accrued holiday for a while), so will be getting paid this month.
 
Out of interest, a question for all the mortgage overpayers:

Did you get onto the property ladder sometime before the market peaked? Or is it just that salary has gone up a lot without an equivalent house upgrade?

I only bought my first place in 2007, so all my equity has been accrued from repayments: I've had to pretty much max out affordability to get somewhere decent.
 
cheesyboy said:
Out of interest, a question for all the mortgage overpayers:

Did you get onto the property ladder sometime before the market peaked? Or is it just that salary has gone up a lot without an equivalent house upgrade?

I only bought my first place in 2007, so all my equity has been accrued from repayments: I've had to pretty much max out affordability to get somewhere decent.
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A bit of everything.

Bought first house in about 2002, so it did increase in value a lot.

Got a mortgage that didn't max us out, so it was possible to overpay from the start.

The offset mortgage helps a lot, it means you don't have to plan to overpay, you just do it automatically by keeping your money in it. Of course the downside is that EVERYTHING you buy makes you feel a little guilty for taking that money from the mortgage.
 
Thanks for all the replies, nice mixed bag, I would too like to over pay ours but life will no doubt get in the way of my best intentions. Should get some pay rises over next year or so but obviously cant count on them to reduce my %age.
 
15% but I overpay a little, would nominally be about 11% net (7.5% of gross) of the joint salary. We had a large down payment (both been saving for the last 12 years) and US mortgages are over 30 years, plus US houses are much more affordable.
 
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