Should I still move house?

[Amber4242]

Hi all.

I was planning on putting my house up for sale in a few months. It’s just me DD but her bedroom is absolutely tiny. Can’t even fit a wardrobe in it, or a small desk with a chair. Question is would I be bonkers to consider increasing my debt at this time? I’m very worried about Ukraine - deeply upset at the devastation- but also about the potential impact on cost of living. That coupled with rising energy prices makes me wonder if we should just stay put?

I know it’s impossible to predict for sure but do you anticipate full recession, house price crash. Would you still consider a move in the current climate?

Thanks

nobody knows. How secure is your job/industry and how financially stretched would you be with the move? I’m not sure I would want a big increase in debt at this time.

It would depend on my job security I think. I doubt there'll be a house price crash. High house prices and low interest rates are the only things keeping the tories in power. They will want to keep it that way.

Good question OP, we were also going to try and move this year, haven’t called it off for certain but we now are certainly not definite. I don’t think there will be a house price crash, but I do think prices could lower due to the cost of living increases - we are very fortunate but being cautious we don’t have nearly as much spare monthly income to upsize with now as we did 6 months ago. Lots of people will be in the same boat so it’s hard to see how this won’t affect prices a bit.
I would watch and wait and do low cost jobs you might have to help get your house ready to sell.

I don't think house prices will crash at all - if all the shit since 2016 hasn't made it happen (only made it stronger, even) then it's not going to

Cost of living is worrying but if a new place would have similar costs more but you can afford it, then why worry?

Sounds like your dd will need a better bedroom, if you think now is the time then do it x

I think you need to stress test your mortgage borrowing to around 4-5%. Just check that you can afford to pay it at that kind of rate. As presuming you secure a fixed rate in the next few months for let’s say 2-2.5%, odds are when that comes to an end it’ll be a lot higher.

The Bank of England have increased interest rates at the past two reviews. The next review is in exactly a weeks time. My guess is it’ll go up again.

I think it depends if you can absorb the extra increase in mortgage payments and energy bills easily. I was just looking at Energy (I am in the very fortunate position of having locked in my energy until Oct 2023) and it would now rise from £103 to £375 per month, also rising fuel and food costs. If you cannot easily afford it I would stay put. I was one of 4 siblings and had a teeny bedroom but it was fine, I don't look back at my childhood and even think about that small room I just remember what a lovely childhood I had in a happy house.

All depends on income. I was paying 6% interest on my first flat, I remember my parents paying 15% low interest rates can change so do ensure you can afford far higher payments

Thanks for all your replies. I’m a nurse so I have secure employment. I will have a play around with the figures as suggested and see what the mortgage could look like on higher interest rates.

Being a nurse would give me more confidence in income security for sure. How old is your DD? Could you give yourself a bit more time to decide?

Dd is 10 so my thinking was she is going to grow soon and with high school looming could do with space for a desk. I know she is lucky to have her own room but it would be nice if she could fit her belongings in it. We share my wardrobe at the moment.

Yes, I can see why you’d like to move soonish. I think the effects on the housing market will become apparent over the next few months, even if prices are decreasing I think chains just have to be prepared to take longer etc. as long as you can afford whatever mortgage you take on I would still consider it in your shoes.