Moving with new baby and redunancy for wife in 2 years - what would you do/think

[Berkshireman76]

Ok, this is my first post, so hello everyone.

Alert - a lot of reading ahead

Quick bit of background on us. We live in Berks., both been employed for 10 years (different companies) in the same companies respectively. I work in I.T on 30k (with a few k bonus) pa and the wife earns 26k. She is getting made redundant in a couple of years and has been given a payment figure of 35k. My job is as 'safe' as it can be, I suppose.

We are expecting our first baby shortly. Our house is on the market, and we have around 50k in equity to use as a deposit for a new house ~300k we are looking at, so 250 mortgage (we currently pay repayment and want this for the new mortgage, not interested in interest only).

We have 21 years left on our current mortgage, but to make it more affordable we are going to get a 30 year mortgage for the next place (we are 30 and 31) and throw everything at it while the wife is employed for next 2 years.

Our current mortgage is around 1200 per month and new mortgage would be nearly 1400 per month. Sounds like not much difference really (ok, longer term obviously as well to be taken into account), does this sounds like a huge amount/scary to people in comparison to their mortgage (taking our age and location into account. ie we didn't buy prior to 2001)

My wife plans on getting another job straight after redundancy anyway, and we both want to work and see ourselves in the 'new' house until the baby is though school anyway - so longterm. We plan on putting redundancy to the mortgage as soon as another job is found (hopefully at least 30k, to make it more managable, but obviously dependant on factors). My wife is confident of finding work. So if market stays stagnant, mortgage of ~200k and house worth ~300k (obviously speculating, but have to start somewhere). Do you think ~50k is a reasonable cushion of a deposit on this house? I know on paper it looks ok, but thinking real world and psycholigical here.

We want to move to a better area for schools and all the usual stuff, but looking to hear views from others. Does this sound scary, doomed, or quite 'normal' for early 30's. This would mean paying the mortgage at 61 (that is if we never put extra to it over the years obviously)

30k won't go far for a 1400 mortgage when the time comes, although probably get a little more by this time anyway, I expect in general wage rises etc. and with wife hopefully getting new job asap.

Who see's this as a reasonable plan and who see's this as foolishness on a grand scale . I should add, we plan on moving in summer this year.

We could put 35k to current house and have a smaller mortgage, but I feel we would want to move in a few years anyway (we are in 2 bed, and looking at 3 or 4). We are looking for a place to live primarily and not making billions of the market etc (just want nice, safe area for future family - like most). I don't expect huge increases over the next few years, perhaps market level is fine for property.

Does this situation with these figures sound scary or normal to you guys?

Thanks.

I'm a huge fan of offset mortgages, and I think they could work out quite well in your circs, as you could use your dw's redundancy to offset interest and still have access to it.

The only thing you should remember is that at 300k you will be looking at a higher rate of stamp duty - don't forget to factor this in.

Was also just about to say not to forget about childcare. Probably looking at roughly around 10k for a childminder, more for a nanny or nursery.

It sounds like a there wouldn't be much of a comfort zone to me if IR's rise (but then I'm stupidly cautious). Sorry.

I would hold tight where you are for now and see both how your personal circumstances change after the baby (one of you may want to work pt or not at all) and also how the economy/housing market near you looks.

I really think that if you move this summer in the way that you describe if one small part of your plan doersn't work out then you could seriously feel the strain.

Life is about living, not just the house you live in.

I think you need to see how you both feel after the baby arrives. I know I have had to change all of my plans as it was such a huge shock to our systems I have ended up going back only PT.

TBH you also need consider savings that are not tied up in your Mortgage. You could consider a flexible Mortgage (we have an IF account) that way you can draw down some of the Capital if everything goes wrong - e.g you get made redundant too or wife wants to stay at home. I appreciate you want to move so you are in your "family house" asap but with the Market the way it is I would personally hold off making a huge jump up the ladder if it means stretching yourselves.

Oh and Welcome to MN, go and meet the guys on the Dads threads, a great place for you to all moan about us Ladies

Thanks guys.
Quite surprised by some of the comments, more one sided than I thought, but I value the realistic views. I suppose that I might have been expecting more 'go for it' type comments, but I realise how the market is stagnant right now and there is caution.

Stamp duty (9k say) - would mainly be paid by the developers (new builds). well, 6% of it would pissibly, but yes, considered this too.

It's not like we 'have' to move right now, I suppose.

Thanks again. Then again, maybe nicer holidays for the next few years

I would not buy a new build in this current market.

I think you will struggle to meet repayments if you take out a mortgage that large TBH.