Is now a good time to upsize?

[Vernatts123]

Hi everyone,

Wondering if anyone has had the same thoughts in similar situations.

80k joint income, 5k take home, both in secure jobs - senior social worker and transport planner. Yearly raises with no promotion will take us to 90k within 5years

1DD (18 months) about to start nursery with 900 per month estimated. We want a second DC in about 2 years.

currently in small 3 bed semi on a main road, bad neighbours, okay area but outer Birmingham and not great schools. Current mortgage 220k and 900 per month but up for renewal in 3 years.

Looking to move to Bournville - quiet heritage area, better schools etc. In a larger 3/4 bed. 400k mortgage and 50k deposit. Approx 1.6k per month.

How realistic do you feel it would be to take on the extra impact? Interested to hear anyone who’s been at the one DC stage and considered moving after promotions ahead of second DC.

thanks!

There are sellers who are not willing to sell their house for less than 2022 prices. Soon it will sell low/ buy low. Our house valuation is 750k and we think that’s too high. I am waiting for it to be 650k and then we will move on to 850k.

At current rates that level of mortgage would be around £2k a month.

What assumptions are you using for the mortgage rate?

Even if you can port your current one the extra borrowing may well cost more than your calculation, plus when your current one ends it may also increase significantly if interest rates are now 'back to the norm' after years of being ultra-low.

If the whole 400k ended up being at 5% on a 25-year mortgage that would be nearly half your total take home.

Plus current and potentially more child care costs.

Exactly. Not sure where £1600 has come from.

LTV is fairly poor, so currently would get maybe 4.5%, but probably closer to 5% on a 5-year fix.

£400k, 4.5%, 25 years = £2200

Have you found a lender who will lend you 400.k on 80k PA?
And agree those mortgage rates are optimistic

You can't afford to borrow £400K on joint salary of 80K. You also won't be able to afford the monthly repayments once your low rate deal ends and this is assuming you can port the mortgage and that your lender actually agrees to lend.
As others have pointed out, on a rate of 5% your repayments would be around £2300/month which is far too high relative to your salaries.
If you want a second child that will many hundreds a month if not more to your expenses.
It would be really unwise to consider this.