what would you do??

[mollythetortoise]

we have a v small house and two dc's. we really need to move. Our house is prob worth about £300k and our mortgage is £138,000. A fab semi detached house is on market, near to school etc that would be perfect for us and we would not need to move again. It is on market for £410. We would therefore need to borrow an additional £110k to get it which we cannot afford at the moment. Well i reckon we could but only if we get the extra £110k on an interest only basis. Our current mortgage is repayment. Would you take this risk or should we just stay put and be happy with our lot, until our finances improve?

i dont think it would be sensible to get an intrest only mortgage without having a sure way off paying the whole lot off in 25years time (or whatever the term of the mortgage is)

TBH i think if you cant afford to buy the house then there is not much point buying it... you dont want to eb counting every penny for all the eyars your children are children surely?

You could probably extend for about 30k Is that a possibility?

We've recently been through something similar, and decided to stay put & try and expand (garden office for us, hopefully). I'd rather be a bit squeezed than counting pennies/not having holidays etc. Is your income likely to improve substantially in the nearish future to allow you to pay back the extra £110? If not, difficult to justify, imho.

thanks for advice. no income not likely to improve much as I'm part time and paying childcare for 2 BUT we wouldn't need to move again and i do think prices may go out of our reach soon.. i.e in 3 years time we will need to borrow an extra £150k to get same house plus was thinking that in 10 years time when back at full time work and no/less childcare fees we could revert interest only bit to repayment.. but money would be tight till then.. will dream some more!

I think things will be better in a few years not worse.Don't over stretch yourselves i agree re holidays and having a life although it angers me that you have to choose

Are you in a position (ie young enough!!) to take the mortgage out over 30 years rather than 25? You could always change things later.