[Zippeh]

I'm in the lucky position that my mortgage is worth less than my wife and I's joint income for the year. We would like to move house to somewhere bigger, but I'm very wary of over extending ourselves financially.

What kind of percentages of your income are you spending on mortgage?

[isleaiw1]

Originally Posted by Zippeh

I'm in the lucky position that my mortgage is worth less than my wife and I's joint income for the year. We would like to move house to somewhere bigger, but I'm very wary of over extending ourselves financially.

What kind of percentages of your income are you spending on mortgage?

do you mean monthly payment as percentage of income or total outstanding?

Complicated in my case as all in my name but I only pay 50% of it as daughter and son in law pay rest. Taking that into account, about 2 years gross income (excluding bonus).

If you take all of it and my rental property mortgage, about 5.5 years....

In your case, I guess how much you extend yourself depends on whether your wife (or you) plan to give up work to have children, what you currently or then would be spending on child care, how expensive your hobbies and "way of life" is. I am a simple soul and not married so my cost of living is pretty damn cheap and even at those levels I still reckon on saving each month towards the one off extravagances...

[kern417]

the standard i've gone by is payments shouldn't be more than 30% of your pay, and the homes price shouldn't be more than 3 years' income.

[Zippeh]

Originally Posted by isleaiw1

do you mean monthly payment as percentage of income or total outstanding?

Either I suppose. Or both!!

Originally Posted by isleaiw1

Complicated in my case as all in my name but I only pay 50% of it as daughter and son in law pay rest. Taking that into account, about 2 years gross income (excluding bonus).

If you take all of it and my rental property mortgage, about 5.5 years....

In your case, I guess how much you extend yourself depends on whether your wife (or you) plan to give up work to have children, what you currently or then would be spending on child care, how expensive your hobbies and "way of life" is. I am a simple soul and not married so my cost of living is pretty damn cheap and even at those levels I still reckon on saving each month towards the one off extravagances...

We already have a daughter (4) and it doesn't look like we'll be getting any more after trying! Pretty settled in knowing how much we spend. Enjoy holidays, but nothing hugely extravagant (week in Spain, few weekends away in this country).

We're currently saving the equivalent of her take home pay every month (not including pension which is also saved on top of that).

[Zippeh]

Originally Posted by kern417

the standard i've gone by is payments shouldn't be more than 30% of your pay, and the homes price shouldn't be more than 3 years' income.

This is the kind of thing ive gone with in the past. Hard to find houses that fit this criteria now!

[andrewX3M40d]

We are in a smilar situation. We have a small mortage at present (less than 10% of joint incomes), really nice neighbours who we get on with, and therefore spare cash to save/invest each month and also be reasonably free to indulge ourselves with regards cars and holidays. Our dilema is that to move and get something siginificantly better ie. size, location and outdoor space, would require a large jump and involve having to give up those nice extras.

The other option we are looking at is extending our current property (using savings) to give us a bit more space without having to increase our mortgage. Not sure if this is an option for you?

[Broncho]

We are at about 25% of net household income per month on mortgage payments, 18 months ago we were at about 17% but have spent a fortune extending and renovating the property recently.

[Malone]

Originally Posted by kern417

the homes price shouldn't be more than 3 years' income.

You should try moving to the UK and applying that principal - see what it’ll get you!...
You’d be lucky to get a 2 bed apartment here in the South East for £250,000

[R0B]

12% of my gross income which would be about 19% of net at a guess.

I am very cautious though and have never desired a big house - just one that's big enough.

[isleaiw1]

Originally Posted by R0bbo

12% of my gross income which would be about 19% of net at a guess.

I am very cautious though and have never desired a big house - just one that's big enough.

20% of net (my share) - I don't consider that particularly cautious, although I suppose compared to the 40% if I was paying all of it, it is! Just under 50% if I was left with the whole house down south and no tenant up north... still quite reasonable given I can easily live on what is left (although I might think about downgrading my car next time if that was a perm feature...)

[AndyEssex330d]

I purchased my first house in 2016, south east of England, and I am fairly young in my career... I wont give a %, but its too f**king much! lol

[Tengocity]

Our monthly mortgage payment is about 25% of net monthly joint income after pension AVCs etc.

Outstanding mortgage owing is about 3 x gross annual joint income.

Feels about right to us- doesn't feel at all onerous, gives room for interest rate rises if need be, and more than enough to be spent on monthly bills, lifestyle, holidays, cars and work to the house and garden.

[NotGotABimmer23]

Most banks will lend up to around 4.5x joint income if the associated monthlies are affordable.

I don't think a £400k property for a couple earning £100k is excessive but you probably couldn't have 2 nice cars along with it.

[Broncho]

Originally Posted by kylemacca01

Most banks will lend up to around 4.5x joint income if the associated monthlies are affordable.

I don't think a £400k property for a couple earning £100k is excessive but you probably couldn't have 2 nice cars along with it.

The property value is less relevant to the outstanding mortgage

[isleaiw1]

Originally Posted by AndyEssex330d

I purchased my first house in 2016, south east of England, and I am fairly young in my career... I wont give a %, but its too f**king much! lol

We have all been there (although maybe a little easier in my day up north, but my wife didn’t work...) so don’t stress about it, will get easier if you don’t move for a few years. Assuming your career trajectory is upwards!! At my age that is the last thing on my mind...

[AndyEssex330d]

Originally Posted by isleaiw1

We have all been there (although maybe a little easier in my day up north, but my wife didn’t work...) so don’t stress about it, will get easier if you don’t move for a few years. Assuming your career trajectory is upwards!! At my age that is the last thing on my mind...

I was lucky to be honest, I have friends/family paying £1500 - £2000 per month on 'normal' 3 bed semi's.

Thank you for your kind works though Sir, 30% of the sales force were made redundant today, however luckily I am due to be promoted 1st Feb, so feeling lucky at the moment to be honest.

[A15X]

Our mortgage is around 15% of joint income and outstanding mortgage is around 2.5 years joint income.

I wish I didn’t live in the south east!

[ajfoggy]

Just made the jump from comfortable low mortgage to one around 27% of our joint income.

Thought it was better to spend the money one a house than cars. If worst comes to the worst can sell the house and move to something similar to the old one.

Don't think we'll be out of pocket once we get all the building work done, hopefully starting it next week, got the full planning though with no conditions! In your face moaning neighbours!!

[robbiep]

Originally Posted by Lobb

0%

Ditto !

[Broncho]

Originally Posted by ajfoggy

Just made the jump from comfortable low mortgage to one around 27% of our joint income.

Thought it was better to spend the money one a house than cars. If worst comes to the worst can sell the house and move to something similar to the old one.

Don't think we'll be out of pocket once we get all the building work done, hopefully starting it next week, got the full planning though with no conditions! In your face moaning neighbours!!

Yep, I feel the same, we've got ourselves into a position now where if we needed to we could sell and buy a nice house outright. We have friends the same age that live in houses that are the same value as our equity but are paying not that much less than we do a month for our mortgage.

It has been hard work and a bit of a gamble at times but worth it.

It also helps that I am much more interested in property than cars and I really like cars!

[isleaiw1]

To me house was a place to call Home but paying a mortgage meant I spent less on shit and paying down the capital was saving....

Remortgaged up north to fund part of deposit and second Home stamp duty in south east at the age of 53.... a tad painful but helping the youngsters get on the ladder so instead of paying rent they pay same towards mortgage and are buying 50% of 80% of a house....

[ajfoggy]

Originally Posted by Broncho

Yep, I feel the same, we've got ourselves into a position now where if we needed to we could sell and buy a nice house outright. We have friends the same age that live in houses that are the same value as our equity but are paying not that much less than we do a month for our mortgage.

It has been hard work and a bit of a gamble at times but worth it.

It also helps that I am much more interested in property than cars and I really like cars!

It's a massive gamble, feel sick sometimes thinking about it. Especially at the moment paying for the rental and the new house, builders, etc.

Hopefully it will work out in the end. The good thing is nearly everyone I have talked to locally had been interest in the property so should we need to sell it should go.