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is it worth moving if we can only afford interest only mortgage?

(2 Posts)
yentil Wed 24-May-06 22:47:04

we live in a lovely house but in an area with no amenities, no life in the area, want better schools and quality of life out of home. so thinking of moving to another area.

however would have to increase 155K mortgage to 235K mortgage to do it and keep a nice size house and be in catchment for schools and near to station blah blah blah.

the max we can afford with childcare payments is 1000 pounds. this would mean an interest only mortgage fixed till our child goes to school (she is less than a year) and I want another child too, so thinking that i won't have reduced childcare for about another 5 years.

does it sound feasible to keep mortage on interest only to keep payments at a grand until children go to school, or stay where we are and pay off capital?

has anyone else been through similar???

threelittlebabies Wed 24-May-06 22:51:46

yentil we moved house two years ago on that basis- interest only mortgage based on what we could afford. We were unfortunate as we moved just before the whole interest rate rise. After a year, when payments had gone up a few times, and we had been at our limit before that, we remortgaged and actually increased our borrowing by £10k to buy ourselves out of said crap mortgage. Our payments are currently £60 less a month for repayment even with the extra borrowing. Having said all that, I love where we live now and am glad we took the risk of going interest only to get ouselves into this house.

Good luck with whatever you decide!

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