We really need to move. Live in a 3 bedroom house and have no.3 on the way. Although we can manage where we are its not ideal.
So weve been looking for a while but because when we finally move it will be pretty much long term, as we know we will have children at home for at least 18 years, so the next house will be our final move before retirement, so weve been pretty fussy, we know what we like, what we want and where we want/need it. However all the houses we see have some little niggle, apart from the ones out of our 'price range' (we had said no more than 250k. The ones we really like are 320k, which would mean our monthly mortgage payment would double and we would have to increase our current years left (16) to 22 years, although we would still only be 56 and 58 by the time it was cleared.
Would you do it? Or is it too much and too risky? It would stretch us but not so we were living on the breadline (i think)
I would go with the best house with niggles - put the niggles right if possible and leave enough money to live comfortably.
Who know whether we will have the same mortgage rises as we did in the late 80's where the rate was 15% - could you afford to pay the same mortgage at 10% as that is what it could well be in 5-6 years time? Although that again is guess work on my part.
They are niggles that cant be put right ivykaty - things like shared drive, or wrong area or overlooked by other houses at the back etc. I know what youre saying about the interest rate thing, but I suppose its a risk everyone has to take, either than or we stay in the same house we've lived in for 10 years and never move, which does not sound appealing. We are pretty safe right now though, our house is nice, in a nice area, central for our chosen primary and high schools (but so would new house) and our mortgage is less than half what our house is worth.
mutt I have saved £300pm for the last 7 months, so I know I have my half to put towards new mortgage, dh earns more and has more disposable to, we would be a tight ship but not beans and toast every night
I don't think, in your position, it is a risk you have to take. I'd only do it if I could lock myself into an affordable fixed rate for, what, 10 years? Presumably your childcare costs are also going to rise?
lulu we are in smaller and cheaper, unfortunately we are in a position where its a big step or no step! We cannot convert the loft (what the hell would I do with the stuff thats up there ) and extending is something we have looked into but again doesnt really work (if we went sideways it would make us a semi rather than a link detached, and dh would lose the garage which he's not prepared to do).
I think the main thing is that we know this would be a last move, we dont want to move and then have to move again in 5 years time, it seems pointless.
yes mutt it is a cert, but then so are other things - without sounding awful <whispers> inheritance, reduction in childcare after 4 years, pay rises likely for me (am bottom band of nursing atm), possible pay rise for dh although he earns plenty now.
said our childcare is actually going to go down as have 2 in full time school and I am going to change my hours so hopefully will only need one days care a week and may be able to talk IL's into that , but if not tis still cheaper than £500pm we were paying up til this august
My PIL advised me and DH to buy the most expensive house we could afford as 'it gets easier'. This has worked for us. You just need to make sure you can afford it and all your other bills and a few uncertainties.
The state this country is in there is no way interest rates can remain this low in the long term.Taxes are all going to have to rise interest rates etc etc.In the run up to the election this current wave of money being pumped in coupled with low rates is going to prop prices up and in some areas cause them to rise a bit.Once the govt start trying to re build the balance books prices will fall again (imo)and repossessions etc will start.The only reason this hasn't happened so far is because QE and low rates have helped many people out.Don't get in out of your depth unless you have some back up.Doubling your mortgage atm is madness
Yes have calculated the 12% rates and its shocking I think we'd have to do interest only for a bit (which is actually what most of our friends are doing now, although god knows why ).
lulu we dont 'have' to move now, we can easily manage in this house and yes the two boys can share and dd will have the little room, this is the plan at the moment. But we dont want to live like this forever, 5 people sharing one toilet for a start is a nightmare (its bad enough now) and we just feel like weve both got good jobs and earn decent wages, yet we're still living in the same house we bought 9 years ago, we need to progress into our 'last' family home
but I have lived in a one and a half bedroomed 'house' with three children for years, one short period of struggling with my mortgage payments was enough to put me off ever being anywhere near overextended financially - I found it horrifically stressful
and there are huge benefits to having a small mortgage, I can afford a horse for example and we all HAVE to get on with one another in such a small house so it's surprisingly harmonious here!