what percentage of your net pay goes to mortgage and council tax?

[palange]

Hi

We are about to become a family of four and are thinking of upgrading our home but are a bit concerned about the extra financial commitments. We are nearly mortgage free and have had the luxury of only paying 13% of our net income to mortgage/council tsax.
(I was also full-time at this point).

I am trying to gauge what is the average % of mortgage/tax outgoings to net income particularly from families of four so that we can work out if our new property would be manageable in practise. We suspect we might be fall into the category of "too careful" and need to take more risk although we do like having a good chunk of disposable income at hand.

With the new property we suspect we will be 34%. We are also wary as we dont feel we have fully felt the additional cost of being a family of three never mind four.

Any advice would be appreciated. x

 

[cmarie33]

I honestly have no idea! I've never thought to work it out, how bad is that?!

 

[scottiejunior]

Mine is around 30% (I class it as very good). I have a good amount of disposable
Income still and never feel like we need more money. I'd suspect that the uk average is prob more like 50% with high mortgage payments and not very high average wage.

I'd say go for it- I really don't think you would feel the effect too much.

 

[My_First]

A third to a half is about the norm, due to mortgage companies not letting you borrow what you cant afford (usually) while looking at all your income and expenditure.

 

[Rachel_C]

OH pays about 26% of his net wage on the mortgage and council tax. He also overpays on the mortgage, which isn't included in that figure as it's not needed I'm not sure a percentage means all that much though... if your wage is low, 75% of your wage might not be enough to live off, whereas if you're a millionnaire, even 10% of your wage would be enough. Bread, eggs and milk cost more or less the same however much you earn I'd just look at the actual figure and whether it will be enough to buy all you need and enough of what you want.

I haven't found it costs much more being a family of four than it did as a family of three, but it does depend on your lifestyle. I saved my first LO's clothes and cloth nappies so, although I have bought new things, I haven't needed to.

 

[cmarie33]

I worked out mines 32% with mortgage and council tax

 

[Snow Owl]

We rent but ours is 65%.....

That's not good is it... Lol

 

[suzib76]

Mine is about 3%

Just council tax

 

[vegazbaby]

we are 33%, we have no debts/ credit cards loans etc,

 

[mammy2oaklen]

were about 30% of dh wages on mortgage and council tax i dont work as am a sahm

 

[discoclare]

rent and council tax is about 25% of net pay for me.

 

[toffee87]

About 30% x