Housing Spend

[D.P.]

25% of my monthly income and 12% of our combined if we pay minimum. Being able to survive on one of our incomes was really important to us so we only took 50% of the mortgage we were offered by the bank and bought a smaller house. Our wages have gone up since we took it out 4 years ago, interest rates have dropped as our LTV has improved so we are really comfortable at the moment even overpaying by about 20% of the minimum monthly payment. We do live in the north so it's cheap as chips to buy a fairly standard 3 bed semi.

Exact same thing, reduced a lot fo stress and made for a lot of savings. Paid mortgage off in no time because of that.


It also helps us save a bucket load selling our house. house prices have been stagnant since we purchased ours 5 years ago, so will be looking to sell at a similar price to we purchased. Realtors here take 6%, so we will make quite the loss on selling our house but buying a cheaper house means we saved a load of money. Could have easily just been another 25K up in smoke.

 

[No1newts]

I want to pay off extra on a monthly basis and we will do eventually but I've helped my wife with a better work life balance (she's dropped to 4 days) and we still like to treat ourself and do the good things. We also save money every month for our two kids and ourselves for when they hit 21 to help them on the way and give ourselves a nice boost when we're a bit older.

I really want rid of my payments and if I stuck to term I wouldn't be done until I was 60 but we are upping our payments to go for somewhere between 50-55 so
I can scale back my work life as I don't want to be full mental until I'm 70

 

[D.P.]

I want to pay off extra on a monthly basis and we will do eventually but I've helped my wife with a better work life balance (she's dropped to 4 days) and we still like to treat ourself and do the good things. We also save money every month for our two kids and ourselves for when they hit 21 to help them on the way and give ourselves a nice boost when we're a bit older.

I really want rid of my payments and if I stuck to term I wouldn't be done until I was 60 but we are upping our payments to go for somewhere between 50-55 so
I can scale back my work life as I don't want to be full mental until I'm 70

I wouldn't worry too much about the over-payments, it is very trend to show off your e-peen(I'm guilty), but the economic reality is with inflation the amount of money you owe in relative terms will decline through the mortgage term. Moreover, the value of money to you when you re younger is likely much higher than later in life. You might have lots of expenses now, think about children and be earlier in your careers. In the future may have lower expenses and will hopefully be in a higher paying job making it easier to over-pay later in life. When interest rates a low, the benefit f over-paying is greatly reduced.

 

[rG-tom]

Those of you paying sub 10% you mind telling me your age?

Apart from those lucky enough to inherit some cash or have wealthy parents I find the generational gap that the article shows is so true.

My parents bought a house paying 2% of their income as a mortgage and their house value has increased by over 500% in the time they've owned it. I've had a nice increase in my own property value (which due remortgage time next year may help my payments) but it's scary how much the difference is.

my gf and I are both 29 and mortgage is just under 10% of our joint post tax salary, live in a well fitted out, above average size city centre apartment that has increased in value by about 70% since it was bought 3.5 years ago. Small part judgement small part luck regarding the increase in value, and that allowed a much better LTV % at the last remortgage.

We're looking at re-locating to london and getting someone a little bigger, prelim numbers it looks like we'll be spending around 25-30% there mainly helped by the large increase in salary in her industry.

 

[Telecaster]

My rent alone is 40% my post tax monthly pay, I offset this by having zero debt or finance or car to pay for, plus I'm anti social so don't spend any money on things other people take for granted like nights out or holidays etc.

And I'm not a millenial liked the linked article suggests in the OP, I'm nearly 40.

 

[Tealc]

21% of my salary, not including bonuses and stuff. I'm 45 and have just started a mortgage after renting for a longer period.

Would be somewhat less if the wife finds herself a job and actually sticks with it for more than a fortnight.

 

[Mucky_Pup]

About 11% of mine, for half of the mortgage payment.

 

[Tom_ed1987]

... Being able to survive on one of our incomes was really important to us so we only took 50% of the mortgage we were offered by the bank and bought a smaller house.

That was our philosophy too. I think we took around 40% of the mortgage value we were offered. We pay 23% of combined take home in the SE.

 

[SilverTongue]

Out of interest, if 25% is on rent and you have very little disposable to save for a mortgage, what does the other 75% go on?

2 kids,nursery fees, commuting, paying for courses to try and improve overall situation and other randomcrap that probably isn't needed and is being reigned in. On paper we should have between 25-30% disposable but it never seem to work out like like.

 

[Spook187]

About 10% for 100% of the mortgage.

 

[Mr.Pink]

Mortgage is 35% and utilities about 20% of our single income.

 

[the_darjeeling]

24yo 21.5% but i'm overpaying by the same amount.