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Cost of Mortgage Advice

Discussion in 'Home and Garden' started by jonnylaris, Jun 22, 2020.

  1. kai

    Mobster

    Joined: Oct 15, 2007

    Posts: 2,871

    Location: S.Wales

    Yeah but the cost would be astronomical to cover that sort of payment plan for an extended period of time.
     
  2. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 33,385

    you do know footballers pay tax right?
     
  3. fobose

    Mobster

    Joined: Dec 6, 2005

    Posts: 4,805

    Location: Cambridge, UK.

    I don't know anything about football but assumed your figure was after tax :)
     
  4. happy_2008

    Mobster

    Joined: Aug 27, 2005

    Posts: 2,926

    Not really, its just interesting to hear on other members current situation. Some people like to have a cheaper mortgage and more disposable income and vice versa etc.
     
  5. jonnylaris

    Wise Guy

    Joined: Feb 2, 2007

    Posts: 1,020

    Location: Belfast

    I would like to hear what % of net monthly salary people are paying on their mortgage including rates. That would be interesting.
     
  6. HungryHippos

    Sgarrista

    Joined: Mar 25, 2004

    Posts: 7,997

    Location: Fareham

    My mortgage is on a longer term (35 years) so a bit lower than usual, but it would be perfectly fine on a 25 year rate, I just choose to pay less each month as I wanted some cash to do other things.

    I'm also on a tracker that has recently worked in my favour, using my pre-recent drop rate my mortgage + monthly expenses are around 32% of net pay.

    This cost is made up of mortgage + utilities (gas, elec, water, internet, simo phone) + life insurance + council tax.

    This is not including food/petrol/car/home insurance costs, so those sit on top of that 32%. Maybe 45% or so once I factor those in on an average monthly rate.
     
  7. Peerzy

    Soldato

    Joined: Nov 9, 2008

    Posts: 6,763

    Just over 4% for the mortgage, only another 24 years to go...!
     
  8. HangTime

    Man of Honour

    Joined: Oct 25, 2002

    Posts: 27,997

    Location: Hampshire

    To the OP: Shop around for insurance (if you really want it), and consider a shorter term. Why not go for 25 years instead of 30 years?

    Regarding the % of net, I can see both side of the argument. On the one hand, it might be vaguely interesting if taken with a pinch of salt. But on the other, it's a bit of a meaningless stat when looked at in isolation:
    • People might have massive savings meaning that high %age of net income is still extremely affordable. People often only consider income when it comes to ability to spend, overlooking capital. You could have a situation where someone pays 70% of their net income towards mortgage but is much better placed than someone paying 20% of net income.
    • People have different mortgage terms, the last time I remortgaged I took a 7yr mortgage and hence was paying more percentage than had it been say a 20 year mortgage, so less 'affordable' in the short term but more 'affordable' in the long term
    • People have vastly different outgoings on top of their mortgages - debt repayments, alimony, school fees, council tax, other bills etc etc. I'd say it's more interesting to know what percentage of disposable income plus mortgage repayments goes on mortgage repayments. You could have someone with a low percentage of net income going on mortgages but they might be paying out hundreds every month for a car, hundreds on CCs/loans etc compared to someone with a higher percentage but is actually left with more disposable income at the end of it, even if they have the same salary.
     
  9. Jimbo Mahoney

    Soldato

    Joined: Oct 18, 2002

    Posts: 6,183

    Location: Belfast

    When we took the mortgage out: 15% (including rates and insurance). 25 year term, 25% deposit.

    Now that we are down to one lower salary: 37% (ouch!)

    I've taken advantage of the COVID mortgage holiday period, so only paying rates and insurance currently: 6%

    I'm investing most of the difference in various things, as my exposure to property is currently too high - I aim for 20% of net worth, but currently it's 25%, so it would be good to get that down so the other assets (stocks, bonds, gold) can do their thing.

    I'm not one of those people who want to pay the mortgage off ASAP - my enthusiasm for that is directly proportional to the interest rate. At 2.08%, I would rather invest in other assets. Once it hits 5%, I'll be more keen to pay it off by diverting savings / selling other assets.
     
  10. flea.rider

    Hitman

    Joined: Aug 7, 2017

    Posts: 959

    hmm and here i come .. we were at nearly the same in the 90's bought a nice house big garden .. then the crash hit job's went sideways and we lost a bit ..luckily we sold the house ..paid off most of our debt ..
    so consider this .. as i'm thinking it's here again .. but as long as your not stretched and can live on one wage things should be good ..
    btw just bought a house again after 9 yrs of saving .. but slapped a 10yr fixed on it .. times are going to get rough ..we put a 35% deposit down ..and at 53 it should be ok ..lol
     
  11. Repta

    Mobster

    Joined: Jul 30, 2008

    Posts: 4,586

    Location: Surrey

    We are looking at 3 bed house with thefthe

    300k mortgage
    100k deposit
    30 year term

    It's a huge mortgage but house prices are ridiculous where we are. Would actually work out cheaper than our rent currently.

    Still a scary amount to be borrowing :/
     
  12. happy_2008

    Mobster

    Joined: Aug 27, 2005

    Posts: 2,926

    That is a huge mortgage but it makes sense if its cheaper than renting.
     
  13. Peerzy

    Soldato

    Joined: Nov 9, 2008

    Posts: 6,763

    A £300k mortgage for Surrey seems quite small really. Depending on the area but £400k around here would get a fairly small 3 bed semi-detached with driveway and very small garden. Source: I recently sold a fairly small 3 bed semi-detached with driveway and very small garden for close to £400k.

    A nicely sized 4 bed detached for example could be anywhere between £500k and £800k depending on location and footprint.

    I think I recently looked within 3 miles of my postcode for a house (... any house) for under £300k and there wasn't a single one - not even a small 1 bed terrace or anything.
     
  14. happy_2008

    Mobster

    Joined: Aug 27, 2005

    Posts: 2,926

    Yes unfortunately South is far too expensive. Im looking for a bedroom semi detached with garage & driveway but these tend to be around the £400k mark.
     
  15. BigT

    Mobster

    Joined: Oct 18, 2002

    Posts: 3,134

    Location: UK

    23% right now. I’ve been as high as 35% (typically when first buying/upsizing until salary increases). 25% IME is the level at which I can live the lifestyle I want I’ve found over the years. Higher than that and I have had to make some compromises (not have a holiday, not change the car For a year or two etc.) but it’s all relative and dependent on personal preferences.

    I’ve never regretted stretching myself with every move. I’m in it for the long term and all things being well I’ll have things paid off at 60, equity in something 4x the average house price and not had to compromise my lifestyle for that many years on that journey. I’ll have enjoyed a lovely “forever” home for half my adult life up to that point and then beyond until inevitably down sizing in my old age.
     
  16. fobose

    Mobster

    Joined: Dec 6, 2005

    Posts: 4,805

    Location: Cambridge, UK.

    Mine seems quite high at 50% but does includes all bills and food, fuel etc and our recent over payment. We fully own both our cars (old though, 09 and 12 plate) so don't have any car payments and have never had car payments.

    I still need to spend money on the house to get it how we want it but I don't mind doing it bit by bit as it means we get some use out of what was already here. i.e I do not like the carpets so they need to go but they still feel new (I just dislike the colours).
     
  17. happy_2008

    Mobster

    Joined: Aug 27, 2005

    Posts: 2,926

    Mine is currently 24% but that include mortgage and house bills. If i doubled my mortgage i would be looking at 35% but its not too bad on one salary i guess.
     
  18. BigT

    Mobster

    Joined: Oct 18, 2002

    Posts: 3,134

    Location: UK

    Ah..... if I want to include food, council tax, insurances, utilities, internet etc. to "live" in said home then I'm up at 50%
     
  19. Jimbo Mahoney

    Soldato

    Joined: Oct 18, 2002

    Posts: 6,183

    Location: Belfast

    Hehe, if I include EVERYTHING (excluding savings), I'm up at 79% :D (We currently only have one modest salary and I'm paying for everything - e.g. whatever we want from Sainsbury's and M&S, plus Naked Wine, plus running a 3.5L sports car, so life is pretty good!).

    We could probably get that down to 56% if we really scrimped, but it would be pretty miserable.

    Hopefully the Mrs will get a job soon!
     
  20. happy_2008

    Mobster

    Joined: Aug 27, 2005

    Posts: 2,926

    Im in the same boat, only on one salary. If i double my mortgage i would probably only be able to save around £500 a month.