Wise to move now or not?

[mitfordsisters]

I'm married with two preschoolers, and we are living in a tiny house, seriously miniature, in Central London.

I've found a spacious flat, nice area, good schools etc. and am really keen to move. But I'm a bit concerned about the financial commitment.

We jointly earn £60k and need to borrow £200k mortgage. Only other debt is £149/ month loan and a small overdraft.

We currently pay £950/ month rent, which would rise to £1200/ month mortgage payment.

There is a possibility that I could be made redundant, though I am quite employable. We could pay mortgage on DH's salary alone, but prob not if interest rates go up say 3%.

I am desperate to move but am I setting us up for financial distress here? I would love your views if you've got this far - cheers!

I'd do it in principle because the sums involved aren't enormous and you can fix for five years and above to give you peace of mind. But probably not now as I think even in London prices are likely to go down. There will be another house/flat in a few months' time and it will probably be cheaper and you will also have more idea what is happening wrt your job.

I probably wouldn't be in any hurry, but if you have found the right place, the costs are affordable and you can fix for a good length of time, why not?

Yes, prices may come down but to counteract this, mortgage rates might go up! Also much harder to get a mortgage if you are on a temp contract and probably easier if you are still employed?

Thanks guys - you are seeing both sides as well! I really want to move; there will be another flat next year, but yes, I might not get a mortgage next year, and this one is almost ideal for us. I'm going to go for it.