How much are you prepared to pay towards mortgage?

[NorthWestPerm2Contr]

60% of net monthly income goes towards servicing your debt, your mortgage? Is your day job running a government of a European country?

No he just lives in the London region..... A lot of my friends living in the SE spend more than 60% of their permie income on rent let alone a mortgage that is actually going somewhere.

[PEEL]

No he just lives in the London region..... A lot of my friends living in the SE spend more than 60% of their permie income on rent let alone a mortgage that is actually going somewhere.

I live in central London and spend and in my last permie role was forking out just over 30% of my takehome. I know people who don't work in finance that pay out 40% - 50%. The justification is that you earlier in your career you expect your pay to jump more than the inflation on your expenses, so the % will go down until you upsize and then the process starts over!

[lukemg]

As little as I can get away with. I have no real interest in paying my mortgage off, that leaves me with a big chunk of total assets in a very illiquid form which would also consume a big proportion of my IHT allowance.
I would much prefer to have half of it still owned by the bank and use the relatively cheap money to invest elsewhere.

[NorthWestPerm2Contr]

As little as I can get away with. I have no real interest in paying my mortgage off, that leaves me with a big chunk of total assets in a very illiquid form which would also consume a big proportion of my IHT allowance.
I would much prefer to have half of it still owned by the bank and use the relatively cheap money to invest elsewhere.

chicken and egg situation.

Bring down interest payments so you are paying less to the bank and can afford to invest more or use the money to invest instead of paying off the mortgage....

[DirtyDog]

No he just lives in the London region..... A lot of my friends living in the SE spend more than 60% of their permie income on rent let alone a mortgage that is actually going somewhere.

Absolutely not.

I just structure my pay frequency differently.