How can anyone (unless rich) afford to move right now?!

[Grrrrrrr23]

Hi,

So we've only been in our current home just under 3 years. We knew it wasn't a forever home and was likely a 5 year home really, but then things changed a little - dd wanted a fresh start, new school/6th form, dp got promoted, with a decent increase in salary and I suppose I wanted a fresh start too. Seemed like maybe a good time to look around.

We're perfectly fine where we are and I'm not really complaining, as I know we're in a better position than most, but after a bit of research, it doesn't look like we'd be able to increase our mortgage at all! Interest rates are insane! Only a very small step up the ladder would double our re payments!

Is there any sign of interest rates coming back down or is this madness set to continue for the foreseeable?

Interest rates will stabilise but for the foreseeable they won't come down down. Personally I don't think ever again, but I would look at at least a decade.

What is more likely to happen is house prices will drop to reflect this. Of course that means a drop on your current house but it's all percentages.

The madness was the insanely low interest rates, pushing up how much people could borrow, pushing up house prices. Time for the reverse. I would have a look in 12 months time. Round here houses are reducing all the time and not just by £10k, by £30/£50k on under £400k listings. So big drops already.

The madness was the fact that interest rates have been kept so artificially low since the financial crisis. This has contributed to over heated house prices over the last decade or so

Yes, I suppose that is a good point about interest rates previously being so low.

I guess we just need to put the idea to bed and get off Rightmove! 😬

It’s not madness, just returning to historical average. I’d stay put if it’s ok for you, can you consider some renovations instead

@Lcb123 maybe you're right, but it certainly feels that way. I don't think we really have a choice, other than to stay put. We could do some minor renovations, but nothing major, as it would quickly price us out of the area.

Tbh, it's more about location. As I said in my OP, it's OK - we're not desperately unhappy, we feel safe, it's quiet, no horrible neighbours as it stands 🤞but it just doesn't have much going on and dare I say it, is a little dull 😬 I'd take dull over not having any spare money at the end of each month though!

We’re looking to move in a couple of years but will have paid off our mortgage and will be moving into somewhere smaller.

I feel very badly for young people and families starting out now. Interest rates went up to 15 % when I bought my first flat but prices were far lower then.

I’m not sure if this is helpful or the opposite but once your fixed rate mortgage term ends you will be paying the higher interest rates anyway surely?

@MrsSkylerWhite ooooh to be mortgage free! 😔 Yes, I feel very lucky to be on the ladder at all!

@Haus1234 🤯😵 Shiiiit! Seriously though, very good point.

@Grrrrrrr23 sorry to scare you! Hopefully you have some time before that but it might be that it isn’t as big a difference as you think and you would be happier in the more exciting area given that both options are expensive.