How Much Of Your Salary Do You Spend On Your Mortgage Or Rent?

[Living In Hope]

Not sure which button to click on: moved to Canada 12 years ago, bought house, paid off mortgage, moved back to UK a year ago, and have been renting since then. (We refuse to buy at height of market). In the meantime, the interest on the lump sum from sale of Canadian house is more than paying our rent.

So we have no mortgage, but don't pay rent. Not sure where that puts us with regards to the initial post....

[davidg]

That's right surely? 32 votes, some pay mortgage but no rent, some pay rent but no mortgage.

I bought my house cash at the end of the last house price crash tail in 1995 so don't pay either.

[Panda]

You have to vote "I do not have a mortgage" to state what % you pay in rent?

and You have to vote "I do not pay rent" to state what % you pay in mortgage?

Put it right?

[Pete95]

16% of my net (take home) pay goes on rent.

I reckon probably 10% goes on food and drink, 5% on fuel and car costs, 5% on going out/eating out, 3% on all bills.

[South Lorne]

Maybe could have included a space for those that neither pay rent or mortgage. I.e. own out right

...would have been useful:

This was an RBS release in 2005....almost one third of houses were owned outright without mortgage

Press Releases

Britain's Mortgage-Free Dream Becoming Reality: Britons Paying off their Mortgage Younger Than Any Time in Last 25 Years

07 March 2005

* Today's home owners appear to be paying off their mortgage at the age of just 48 - younger than at any time since 1979

* The total time that Britons say they spend making mortgage repayments has fallen to 21 years – the lowest figure since 1997

* Almost a third of British households are now owned outright. The number one hotspot is Fairlight in East Sussex, where 69 per cent of households are owned outright

* The trend towards outright ownership appears indelibly linked to a desire for security: 2 in 5 mortgagees say paying off their mortgage would be the single-most important thing they could do to safeguard their long-term sense of security

http://www.rbs.com/media03.asp?id=MEDIA_CE...RCH/07_MORTGAGE

[ScaredEitherWay]

Tricky as I don't work. But I can come up with some figures.

I rent - houseshare though, not sole-renter. Single, female, 46.

Rent is 50% of the interest earned (net) on my STR fund

I do have some money from "dabbling" on the Internet... I really should do more with this, but as I've just moved I am taking a bit of "me time" out. Rent is 60% of my dabbling income.

If I had a "normal job", the rent would be 30% of my net salary

If I manage to get work in my specialism, the rent would be about 5-10% of my take-home ... and I'd probably then rent my own small flatlet costing up to 20% of my net

Edited August 1, 2007 by ScaredEitherWay

[Guest Bart of Darkness]

9% of net (LA flat)

[Boughtin95]

No mortgage and no rent.

We bought in Dec '95 with 25% deposit, paid remainder within 5 years.

Best move we made but I wouldn't buy at todays prices, seen it all before.

[talksalot81]

Of course this is far from representative because HPC members are rather more likely to be careful when it comes to mortgages!

[Ignorant Steve]

Of course this is far from representative because HPC members are rather more likely to be careful when it comes to mortgages!

Indeed.

What I find more worrying from the results are the 25% of renters paying more than 25% of their salary in rent. What an horrendous waste - no wonder they are frustrated at not being able to buy.

[NeilB]

Indeed.

What I find more worrying from the results are the 25% of renters paying more than 25% of their salary in rent. What an horrendous waste - no wonder they are frustrated at not being able to buy.

That's just how it is though, isn't it. I earn approx £3k net and my rent is £1k (3 bed terrace) so roughly 33% (which sounds horrendous). Yet I wouldn't say we were over-stretched, we run two cars, raise two kids, eat well, take the occasional modest family holiday and fill two cash ISA's each year. Rather than considering it a horrendous waste I'm actually very grateful for being in such a fortunate position, and especially for my kind landlord who would surely be much better off selling the place and banking the £300k.

[scottbeard]

Mortgage 37% of net.

That sounds quite a lot put like that! But even at 10% interest rates it only becomes 56% of net, which is still affordable.

[IWantItNow]

Was 40% net last week but now I have my pay rise only 33%