Poll: How Much Of Your Income Is Spent On Your Mortgage / Rent?

We’re all aware of the increasing prices of food, fuel etc., as well as the difficulty in finding low mortgage rates (despite the Bank of England base rate falling recently, we can blame the credit crunch for the tougher borrowing conditions).

One of the worries is that as these costs increase, more and more people will go into arrears on their mortgages by missing payments – when there’s food to be put on the table, rent and mortgage payments could get put to the bottom of the pile.

In the past, the proportion that people are paying on their mortgage has been a good indication of whether we might be heading for a housing crash. According to a recent report, the proportion we’re now paying on our mortgages is higher than it’s ever been – higher than at its previous peak in the 1980s, which preceeded the housing crash of the 90s.

I’ve done a quick calculation and have worked out that we (my partner and I) spend around 30% of our income on our mortgage (it’s interest-only, so that’s both the mortgage repayment and the ISA investment we make to cover the capital). I’m not sure how that compares to others, so I’d like some feedback from you on how much of your income gets spent on your mortgage, or indeed if you’re currently off the property ladder, how much goes on rent?


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