To park this life goal for now

[FlyingSoap]

TL,DR: house buying in current times !!

Everyone talking about how rates are soaring. An article I saw yesterday saying FTBs will now pay over 10k in interest on average was the final straw. Apparently your actual equity would only account for 30% of the astronomically large payments. We have a deposit saved away in ISA but would still need a 95% (possibly 90) LTV so is a high risk for negative equity(owing more to the bank than the value of the house). This will matter and might come back to bite us as like most (all) people getting onto the ladder we can’t afford the home we’ll live in forever straight away, sadlynot practical for us

We rent in a beautiful village where everyone knows one another and there is zero risk of being evicted, and payments will only go up by nominal amounts. So lucky for this.

Is being a homeowner worth it if you’re compromising on other areas of life ?? It’s always been my goal but lately I’ve been thinking we might as well enjoy life a bit more rather than being so house poor and maxing out our budget. A low deposit and an extremely long term is essentially renting from the bank with all the drawbacks of property maintenance, right ? Just sounds like the opposite of secure to me

Even thinking now DH and I could make the best of our little home despite being rented and start our family here given we would then have a larger amount of disposable income to help buffer reduced income over maternity, then later childcare fees (although we will only need one full day of paid childcare anyway). We earn equally and I do intend to go back to work FT and love my job. Maybe this is illogical as lenders would then lop more off our affordability for dependant, though DHs salary should be on the rise over the next several years with commission and enhancements anyway.

I do see my attitude might be wrong but trying to be considered based on the research I have done, and other threads read on here

I would 100% buy before starting a family.
Even in this market?

Yes, definitely, there’s nothing quite like opening the door to a property you own (well the bank does really), the security and peace of mind. Knowing that as long as you meet your monthly payments it will eventually be paid off and when you retire you’ll have no rent or mortgage to think about.
I have known quite a few people to wait over the last fifteen years or so trying to play the market and they never seem to gain anything by it.

Fair enough! Thank you

I would be inclined to agree with having children after buying a property. Especially depending on how many children you want. I note you only will be using 1 day childcare. How is the other childcare sorted? Is it family? This could change. My mother and MIL were going to help with childcare 1 day each a week, they both got ill and could not - bam that is 3 days childcare which greatly affects how much lenders will lend you.

Even now with one son at school, (so no childcare costs) lenders will lend less due to having one dependant.

I think that if you are going to be paying rent or mortgage anyway, then you may as well pay a mortgage which is more of an investment for your future .

FWIW I bought in 2015, had my son in 2018 and had several painful years of paying nursery fees. Am now moving 2023 as he is in Reception at school.

My concern is retirement - what do you do when your income reduces and you still have a huge rent to pay. I also don't understand how you know there is no risk of eviction - what is the property was sold?

It won’t be sold, not a private landlord. We wouldn’t be buying never, just not yet while rates are crazy

What do you consider not crazy?

Sounds like your happy in your rented home.

The rates 6 months ago, or 12 months ago, were better than now

This time last year base rate was 1%. We will probably never see that again. 6 months ago 3.5%, more plausible but only once inflation has stabilised at a level below the 2% target. I wouldn’t be holding my breath personally - and don’t forget mortgage rates will always be slightly higher. If you think rates might go down have you looked at tracker mortgages? You don’t have to get a fixed rate.

I used to think like this. Bought 2 bed flat then a 3 bedhouse with my ex. Had one child when bought first property and 2 when bought house. However he became Alcoholic and violent so had to take the kids and leave Got not a penny out of that house. That was years ago. He's still living there with his wife. I'm still in rented accommodation. Do I care? Not really. Have a good amount of savings so travel regularly not kids all grown and don't worry too much about pension. Maybe even won't make pension age as cancer diagnosis ( although clear at mo)tends to reduce lifespan and I'm only 51. So to worry about maybe having to pay rent on a pension in 16 or 17 years is least of my worries If I was that skint there's housing benefit or whatever its called these days.

But not spending last 20 years paying mortgage and doing house repairs hasn't done me any harm

I think even 3.5 would make a real difference to be honest