If you were a first time buyer would you rethink buying now? We are desperate to move out of our current rental before our new baby needs her own room but really concerned about rising interest rates and the possibility we’ll lose money if we buy now and the market takes a downturn in the next bit.
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Would you rethink buying now as a first time buyer?
trrk · 04/08/2022 10:25
Hummingbird33 · 04/08/2022 11:27
You won't lose money long term. Even if there's a bit of a dip coming up it always picks back up eventually. In the meantime you'll be paying to own rather than rent.
If you can afford to I'd buy ASAP before interest rates get higher, and get a fixed rate locked in.
Riverlee · 04/08/2022 11:40
There’s never a right time.
If you wait, interest rates could go up, and mortgage offers may become harder to come by.
Also, you’re paying rent now. Don’t know how much you pay, but say it’s £500 per month, ie. £6000 per year. If you live in a house for five years, it’s unlikely to de erase by £30k. Even if it decreases by £15, you’re still £15 k.(although I do appreciate there are additional costs to home owning).
My son got a five year fixed mortgage at beginning of year. Since then, there’s been a few interest rate increases, which would have cost him £50+ per month (£300+ per year) had he waited.
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Riverlee · 04/08/2022 13:11
@oiltrader. Yes, I appreciate that in five years time he’ll have to pay the increased interest rates, but until then, he’s saving money.
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