What % of your income do you pay on mortgage?

In 1976 mine hit 100% when interest rate hit about15% - fortunately wife had a good job and kept us afloat till 1979 when we sold for 100% profit and put down every penny we had on house in sticks which no one wanted because of fuel crisis and petrol had rocketed - My house insurance was more than mortgage payments - I then paid off as much as I could to get rid of the biggest millstone around any ones neck.


Dave
 
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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Good salary and reasonable house price, 2 earners and a good deposit.
i don't overpay much due to rates being low future inflation will reduce the amount owed by a large part and I can get better returns on other financial products.
 
Benihana said:
11% Here in Denmark, seems low....too low :S
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No, the UK has a bad combination of high living costs, high house prices, high taxes and moderate salaries. Plenty of countries might be worse in 1 or 2 areas but not all. e.g., Switzerland has high living costs and high house prices but taxes are very low and salaries very high.
 
20% initially, now 10% (for half the term) after refinancing due to the massive interest rate drop last year. I wonder if analysts were correct in declaring that we shan't see rates that low again in our life time.
 
First mortgage was 45% but now it's half that. When you first start out interest rates are high because of your ltv yet you probably won't have kids etc so it'll seem very high.

Internet stats are fine for the average Joe.
 
My plan is to always mortgage the biggest, best, and nicest house I can afford. This means I expect to be using a very large chunk of my salary to finance property purchase for the entirety of my working life, after which we'll downsize and free up the capital for retirement.
 
14% of joint net pay.

Used to overpay but my wife has gone back to work after having a baby and dropped a day. Also nursery fee's are eye watering, they're actually more than my mortgage per month for just 3 days a week! :eek:

Participant said:
My plan is to always mortgage the biggest, best, and nicest house I can afford. This means I expect to be using a very large chunk of my salary to finance property purchase for the entirety of my working life, after which we'll downsize and free up the capital for retirement.
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I know you probably won't do that but I'll say it anyway. All well and good until interest rates shoot up and you're homeless :p Always leave wiggle room.
 
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Participant said:
My plan is to always mortgage the biggest, best, and nicest house I can afford. This means I expect to be using a very large chunk of my salary to finance property purchase for the entirety of my working life, after which we'll downsize and free up the capital for retirement.
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We are the complete opposite, we live in a modest house but have a large disposable income because of it. As such we have a lot put away which offsets against our mortgage which means we have an interest free mortgage and we can take advantage of our ISA allowance and still have a very high quality of life. We arent affected by fluctuations in interest rates and we dont live a miserable life but live in a large house.

We went through a very serious consideration of what you are proposing last year when deciding whether to pull the trigger on a £500k house but came to the descison that there was no point in having a fine house but no money to enjoy life. Obviously everyone has different priorities but I would consider that life is for living and to enjoy what little time we have.
 
Currently paying about 5% of net income but soon to jump up to 25% with the new place. Hoping to start overpaying the full 10% in year two (year one will be spent doing up the place) and should have the mortgage down to a sensible level in 5 years.
 
D.P. said:
Good salary and reasonable house price, 2 earners and a good deposit.
i don't overpay much due to rates being low future inflation will reduce the amount owed by a large part and I can get better returns on other financial products.
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Not quite !! Neither of us has ever earned anywhere near national average wage -Joint income just passed it - Due to mortgage we didn't have any kids or holidays - we scraped by for years -- I seem to be better off now I am retired than when I was working- all 40 years of it.

Dave
 
Just in the process of trying to buy my first house and if everything goes to plan (ie I get the house for roughly what I hope I will - its a right to buy council scheme) then with just my income I should be at about 23%, however as I am planning to buy with my mother (its her house I am planning to buy) it should be about 12.5%. After 18 months I plan to start overpaying by as much as another 11% of my income.
 
I'm new to mortgages... Bought our first house about 6 months ago :)

I have a bit of spare cash each month I've been thinking of investing, this last week some old bat mentioned overpayments on a mortgage...

Just had a quick look online. here and it would suggest that my ~£110000 @ ~4.5% over 25 years would be reduced by 9 years and 1 months with a saving of £30k! with a £200 a month overpayment...

Does that sound right?!
 
At that rate... Would it be worth pulling out of the work pension-or at least cutting right down, and chuck that £200/month at the mortgage?!...

£400 a month extra would have it paid off in 11 years!
 
NoNameNoNumber said:
At that rate... Would it be worth pulling out of the work pension-or at least cutting right down, and chuck that £200/month at the mortgage?!...

£400 a month extra would have it paid off in 11 years!
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You're pension should be making you more in growth than the interest cost of the mortgage so I don't think that's a good idea, plus you would presumably lose employer pension contributions as well if you did that?
 
Yeah I'd have to cut the payments back to the minimum to keep on this old pension scheme if it was to work out worth doing... I think currently I pay 6% and they pay 10%

Either way, 9 years off my mortgage with a paltry £200 overpayment looks nice :)
 
rossk26 said:
Any spare cash you have is better off used to overpay the mortgage rather than save.
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That's not really correct. It completely depends on what interest rate you get in savings.

E.g. if you have a mortgage interest rate of 3% and you earn 4% on the savings (net of tax) then you are better saving. If that starts to flip you can always re-mortgage or make accelerated overpayments if your policy doesn't allow large one-off payments.
 
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