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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To pull out of buying this house and signing up for a big mortgage

39 replies

BorneFeet · 05/03/2020 16:28

We're stretching ourself to move up from a 2 bed to a 4 bed house.
We're ready to exchange on the sale of our house but not on the place we're buying.
Moving to a new area and would rather rent for 6 months then see than take on a huge mortgage with everything so uncertain at the moment.
DH thinks its a bad idea to have cash and better to have debt on the new house. I disagree AIBU to think it's better to pull out and rent?

OP posts:
Freddiefox · 05/03/2020 16:33

If your ready to exchange why has this just come up now?

What’s are you uncertain times? Brexit, Coronavirus?

crazydiamond222 · 05/03/2020 16:34

Depends if you think prices will fall over the next 6 months. Personally I think in 6 months time things will be even more uncertain with the end of the transition period. How long do you want to stay in rent? If you keep your deposit in cash make sure you only put max of 85k in one account.

Original poster
BorneFeet · 05/03/2020 16:37

Because of Coronavirus, not so much the virus but the economic impact. Don't want to stretch ourselfs as either could be made redundant without notice and house prices could fall

We could rent a perfectly nice two bed for 900 a month (fine to rent not what I would live in long term), so wouldn't even be costing that much more than the interest payments for the 4 bed

OP posts:
Skysblue · 05/03/2020 22:29

The great thing about selling your house and renting while you househunt, is that when you make an offer you are the “cash buyer” that everyone wants. So if loads of people offer on your dream house, you get it if you’re a cash buyer but probably don’t if you’re in a chain.

The virus is gonna get worse before it gets better, it is a good time to be careful with funds. Yanbu.

mrsbyers · 06/03/2020 10:46

But she isn’t a cash buyer , she’s a buyer with a (healthy) deposit but still the need for a mortgage.

HeartyGreenSalad · 06/03/2020 10:58

Having no chain is a good position to be in when buying a house

Aguinnessplease · 06/03/2020 10:58

I think you’re being perfectly reasonable. Unfortunate for the sellers, but probably the right one from your perspective.

flirtygirl · 06/03/2020 10:59

Being a cash buyers is not as great a thing as people on here, suggest. I was one and it made not one jot of difference in house buying.

Op it's silly to rent as you will buy eventually, just find the house you really want. Rent for the shortest time possible do that you don't break the chain, if need be, but don't go rent for an indefinite period of time.

Duckingell · 06/03/2020 11:03

I would still prefer to be a 'house owner' than renting.

So if you did lose your job/s at least you can try to arrange with the mortgage provider a way to keep paying - lower payments for a while or a mortgage holiday- until you are back in work.

If you lost your job/s whilst renting then you'd have to eat into your savings to pay rent.

I don't think I'd want to step off the housing ladder unless necessary.

Northernlass99 · 06/03/2020 12:30

I see why you are anxious but there is always something to worry about and never the exact right time. Rent is dead money. You could loose you job (or not) at any time. If the economy does crash you might not even be able to move in the future and will be stuck in rented with all the uncertainty.
If you like the house and you are all set, then go ahead, and get settled in.

Original poster
BorneFeet · 06/03/2020 13:01

I like the house, but it is a huge mortgage to take on. And if this is anything like 2008 couldn't prices fall again?

Not a cash buyer but will have a very large deposit and need a small mortgage.

Going back to look and look at some rentals :)

OP posts:
peeledplumtomatoes · 06/03/2020 13:03

What would you do if you lost your jobs while renting?

DropYourSword · 06/03/2020 13:07

House prices might fall, but unless you were planning to sell again soon it wouldn’t really impact you, would it? There are always fluctuations, but historical trend is always that house prices rise over long term.

Winterwoollies · 06/03/2020 13:07

It’s a buyer’s market now, not a seller’s.

Why would you want to pay someone else’s mortgage and eat into your deposit by renting? Especially at this late stage.

Pipandmum · 06/03/2020 13:08

Prices are relatively stagnant I don't think they will drop much. But renting is not a bad idea if you are unsure of the area and which neighbourhood to be in. As for job security you still need to pay rent (often more than mortgage payments) and it will be impossible to get a mortgage without a job.

Original poster
BorneFeet · 06/03/2020 13:08

have oodles of savings if both of us lost our jobs and weren't working. if we both lost our jobs and bought wouldnt have any cash in the bank as it would all be spent on that

renting isn't that much dead money as the interest on the new mortgage alone isn't that much less and could loose money if house prices fall.

OP posts:
Original poster
BorneFeet · 06/03/2020 13:09

also not 100% sure on the new area, if it isn't for us all the stamp duty of selling in a years time would be a loss, and if prices fell again would make it difficult to sell and trap i feel

OP posts:
OnlyFoolsnMothers · 06/03/2020 13:10

I sold my flat and went and rented for 6 months before buying a house, during that time prices went through the roof, i was gutted!

Original poster
BorneFeet · 06/03/2020 13:13

I know that can happen only, but with brexit and the virus it does seem unlikey now doesn't it?

OP posts:
Cookit · 06/03/2020 13:15

I wouldn’t pull out. Renting is just a waste of money if you are at least fairly sure of the area you want to move to and the kind of place you want to buy. It’s just postponing a large purchase and a large mortgage and in the meantime paying a lot of rent plus a few k each time to a removal company and days sorting out and packing up, disruption to kids etc.

Any moves in house prices are not realised unless you sell. If this is a long term purchase best not to be checking Zoopla daily. I’m sure when we bought we made a short term paper “loss” and now likely a small “gain”. It’s all irrelevant- I’ve had a few years in the area I wanted to live in and it makes me happy.

BernadetteRostankowskiWolowitz · 06/03/2020 13:20

But a crash in the market only matters if you plan to sell on soon. Living in the property for 10 years will likely negate any negative equity.

Cookit · 06/03/2020 13:26

I know that can happen only, but with brexit and the virus it does seem unlikey now doesn't it?

Brexit has long been priced in to everything.

carly2803 · 06/03/2020 13:27

no, bad idea

buy a house and keep your money safe in bricks !

carly2803 · 06/03/2020 13:27

no, bad idea

buy a house and keep your money safe in bricks !

Original poster
BorneFeet · 06/03/2020 13:27

Brexit is but not virus?

Moving costs aren't that much it's costing £500 to move everything 200 miles, then the next move will be way less.

No idea if we will live in it for 10 years, it's a brand new area

OP posts:
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