Second time buyer advice(5 Posts)
I feel like we are currently stuck in limbo and I'm not sure when to take the plunge of moving...
We have 2 small children, a toddler and a baby, and are currently living in a 2 bedroom flat. Whilst the children can share a bedroom, the whole flat is starting to feel small and cramped. There is also the issue of being in a poor school catchment so we need to start thinking about moving soon.
What I'm stuck on is when! I work part time and pretty much my whole salary goes on childcare, my husband earns a relatively good salary but if we move we wouldn't be looking at a huge house in our current position. In fact we might need to move to a small 2 bed house but in a better area...which I think would be fine if we had a garden etc.
Anyway my worry is getting a slightly bigger mortgage whilst so much money is going on childcare, I know the banks are stricter now so do we bite the bullet and try sell our flat next year or do we hold off a year or two until childcare is less?
My worry is that with waiting the value of houses we can afford now will become out of reach. All deposit is tied in current flat so we are relying on selling for a good price. Is this silly? Ideally I want to save but we can't as nursery fees so high. We could however afford a slightly higher monthly remortgage payment (e.g. £150 which is what we would be looking at).
I think I'll speak to a mortgage advisor but how do they work, do they take a % of the sale?
Any advice would be great! I'm desperate to move but I just don't know if it is feasible and how other people manage....
Moving up is always a bit of a struggle at first, but it's something that if you want to get a house you'll eventually have to do. In years to come you look back and think it wasn't so bad!
Have you looked at the area and houses you might like? I always put the facts and costs down on paper to give a clear view, for example; would you, perhaps find a cheaper nursery? Or would you have to pay for commuting?
I don't know much about mortgage advisors, but someone will be along who does.
Good luck with whatever you decide.
I think I'll try to move now even if it's to a 2-bed house with a garden in a nicer area.You can start making fiends while the children are small. Once both children are at school, you could have a look at moving a large house but I wouldn't want the whole family living in a small flat for another few years if the local schools aren't right either.
I'd start by inviting a few agent for a free valuation to see what they think your flat can sell for. Although I'd be looking to sell through an online agent as it's much cheaper. I'd also go to moneysupermarket and a mortgage broker to see what good mortgages are available and to find out how much you can borrow. I don't think they will charge you anything until you actually apply for a mortgage.
Could you move to a 2 bed house where you could do a 2 storey extension/loft conversion in the future adding space that way? Then you can save up and do the works later on. Might necessitate enough garden space. School catchment I think is very important (also look at breakfast and after school clubs and cost of those) and if you can, move before the January application deadline before your eldest starts school. If you are working, having 2 children in different schools even if temporary can be really hard.
Speak to a broker. Mine just charged a flat fee after completing of £195.
Something to bear in mind....not all lenders take childcare costs into account when looking at your outgoings. We went with NatWest in the end and they didn't take childcare into account as they recognise that although they can be expensive they can change massively and don't last forever. Something to bear in mind.
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