what percentage of your monthly income goes on the mortgage?
Discussion
Been looking at moving next year to somewhere a bit bigger, did a few sums working out what mortgage payments were likely to be.
I'm currently paying 25% of my monthly income to my mortgage co, which leaves me plenty to save, spunk on cars and run the family.
For what I'm looking to move to It'll go up to 50%, and I started thinking "do I really want to do this?".
Seems like a massive chunk of my monthly income and doesnt leave much money to play with.
What percentage of PHers wages go on the mortgage every month? as I understand it 25% is quite low, and 50% is more common, yet I'm tempted to just stay put now as I dont really NEED that bigger house, although it would be nice....
Cheers
I'm currently paying 25% of my monthly income to my mortgage co, which leaves me plenty to save, spunk on cars and run the family.
For what I'm looking to move to It'll go up to 50%, and I started thinking "do I really want to do this?".
Seems like a massive chunk of my monthly income and doesnt leave much money to play with.
What percentage of PHers wages go on the mortgage every month? as I understand it 25% is quite low, and 50% is more common, yet I'm tempted to just stay put now as I dont really NEED that bigger house, although it would be nice....
Cheers
Depends one what you think your income will do, if it will continue to rise then 50% may only be that for a short term, if it is likely to remain static then maybe it's a lot, also depends on your job security. There is a lot to be said in upscaling the house if you manage to buy at the bottom of the current dip (of course establishing what is the bottom is the trick), the house you buy will have lost considerably more than yours theoretically and then as things rise again (ever the optimist, but they will) then you will ride a higher growth.
davido140 said:
Been looking at moving next year to somewhere a bit bigger, did a few sums working out what mortgage payments were likely to be.
I'm currently paying 25% of my monthly income to my mortgage co, which leaves me plenty to save, spunk on cars and run the family.
For what I'm looking to move to It'll go up to 50%, and I started thinking "do I really want to do this?".
Seems like a massive chunk of my monthly income and doesnt leave much money to play with.
What percentage of PHers wages go on the mortgage every month? as I understand it 25% is quite low, and 50% is more common, yet I'm tempted to just stay put now as I dont really NEED that bigger house, although it would be nice....
Cheers
I would respectfully advise you to stay put, 50% is a massive chunk out of your income....What would happen if you lost your job???I'm currently paying 25% of my monthly income to my mortgage co, which leaves me plenty to save, spunk on cars and run the family.
For what I'm looking to move to It'll go up to 50%, and I started thinking "do I really want to do this?".
Seems like a massive chunk of my monthly income and doesnt leave much money to play with.
What percentage of PHers wages go on the mortgage every month? as I understand it 25% is quite low, and 50% is more common, yet I'm tempted to just stay put now as I dont really NEED that bigger house, although it would be nice....
Cheers
Not nice living on Beans on Toast for years and years, and you say you don't NEED a bigger house.....
Just my 2p.
42% of net total income but this is by choice, so we pay the bloody thing off sooner rather than later, i.e. within the next 2-3 years instead of the next 25-30.
I looked at moving house recently too but remember everything else will go up to. Council Tax is more, heating/eletricity is likely to be more, water rates etc. It's not just the mortgage to worry about its everything else too! Not forgetting maintenence costs, redecoration, additional furniture, the dreaded stamp duty etc.
I looked at moving house recently too but remember everything else will go up to. Council Tax is more, heating/eletricity is likely to be more, water rates etc. It's not just the mortgage to worry about its everything else too! Not forgetting maintenence costs, redecoration, additional furniture, the dreaded stamp duty etc.
Its also relative to your total income. 50% is a big chunk but it also depends on your living costs. For example if your net income was say 8k per month, 4k on a mortgage still leaves you 4k for living. 10% of your net for saving/contingency is 800 per month leaving 3200k to live on which is doable.
On the other hand, if your net is 3k per month and mortgage is 1500, that only leaves you 1500 to live on which may be tight.
personally I'm on just below 30% of net income and I would go to 40% max.
On the other hand, if your net is 3k per month and mortgage is 1500, that only leaves you 1500 to live on which may be tight.
personally I'm on just below 30% of net income and I would go to 40% max.
paolow said:
net - 43%
gross - 30%
I'm about the same 43% mark from basic wage since the wife quit work to have our son - it's killing me.gross - 30%
But lucky enough to get bonuses that rebalance that to about 30%, but given what's happened in the markets I think I'll be screwed this year. I
I could only do 50% if I was single
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