Namechanged so I can post more detail.
Firstly, I know nobody has a crystal ball so it's impossible to really say. But I'm feeling quite nervous about our situation and not sure if I'm over reacting (DH thinks I am).
So, we live in a lovely flat in a lovely area of SE London, that is starting too become too small now we have 2DC. Already extended to max capacity. Unfortunately we had some lingering issues with the extension (eg leaking roof) that we have had to put right before we could consider going on the market. We're now at the stage where we could sell without worrying about surveys etc.
However the plan was to wait until Spring as a better time to sell and it enables us to save a bit more of a nest egg in the meantime. Our fixed rate ends in August so that's really the motivator for sorting it out before then.
Obviously over the past 6 months or so the property market in London has cooled hugely. As we are upsizing this makes me worry. We can afford to pay more on a mortgage, but I've just read some really helpful advice explaining exactly why borrowing close to your limit on a low rate is a really bad idea, and why paying higher interest on a smaller lending amount is better even if you pay the same amount each month overall (particularly if you overpay).
So the quandry is what to do. Do we bite the bullet and try to sell now in the hope we get ahead of prices tanking?
Or do we wait until Spring and accept a much lower offer, higher interest rates (potentially) and maybe not much on the market to choose from.
With either option the risk of coming to the end of a fixed rate mortgage 5 years down the line with higher interest rates and lower value property is a real possibility (or maybe I am all doom and gloom?). I know we can try to mitigate this as much as possible but we need to add £150-£200k to our mortgage to manage to upsize and so I'm getting fear.
Should we just sit tight and live in our cramped flat instead?
Or should I listen to DH who says we just have to go for it in the Spring, make sure we can still save a little/overpay each month and deal with the situation 5 years down the line at the time as it may be fine?
I'm so terrible at making decisions at the best of the time, and opinions and wisdom would be helpful!
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36 replies
FridayThirteenth · 13/10/2017 13:24
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