Selling / purchasing property following todays news...

[itsmschanandlerbong]

So I'm struggling to wrap my head around if we're doing the right thing, or if it's a horses for courses kind of thing.

We bought a house around 5 years ago for 135k, currently we have 115k left of the mortgage. We have just put the house on the market, valued at 190k. We are looking to move to a bigger house, possibly around 230k but release some of the equity to pay some debt, buy new furniture and decorate the house.

Are we mad selling the house and moving to a more expensive house with these interest rates rising? I read that house prices will likely fall, but surely that will be good for us if we're wanting to buy a more expensive house than we currently live in. Or will it take some time for this to happen and we're then effectively paying well more than what will end up being market value for the house we move into?

It's not the best time for him to buy due to fairly high interest rates. However, he may need to buy based on his personal situation (or desperately want to) so it's hard for strangers to advise. They should definitely offer lower then the asking price - about 10% under is the usual advice as an opening gambit.

Thanks, the mortgage will be lower than the rent, and as they have been in the rental flat for two years, albeit with a lovely landlady, they think the rent will have to go up. This is depending on their mortgage company not pulling out as well.

This. If you’ve accumulated debt over the past 5 years, are you really in a position to take on a bigger mortgage? Figure out why you’re in debt, address that and then think about moving house. You can bide your time because house prices certainly aren’t going to rise in the immediate future.

There is also no way I’d be borrowing to buy new furniture either!

We bought this house in the 90s when we were still nervous about the historic high interest rates of the late 80s. As a result we bought a very modest three bed semi at a sensible price where we KNEW we could still pay the mortgage if the rates rose sky high again. It needed stuff doing but was a great location and in the right catchment area.

Over the years we extended it twice and had a loft conversion, landscaped the garden, changed the kitchen and bathrooms twice and overpaid the mortgage and were mortgage free at 50.

All the money after the mortgage was paid off went into our pensions. At 57 I am now retired, Dh is staying on a few years, but we have a comfortable 4 bed house and enough in savings and the pension pots.

I have friends in much bigger houses with years and years left on their mortgages and next to no pension. Even downsizing at retirement won't put them on a level with where we are. I dread to think what interest they have paid on their massive mortgages over the years.

To answer your question OP, imo yes you are mad to do that.

How can your friends have much bigger houses than you if you have a "comfortable 4 bed"? Think your friendship circle must be somewhat niche if they are all living in 6 plus bedroom houses!

Don’t be silly. Mine was a 3 bed semi with a loft conversion. Extended to add a dining room and downstairs shower room. Theirs are fuck off massive detacheds with bigger rooms and gardens and en suites.

not all four beds are equal believe it or not. 🙄

@determinedtomakethiswork
my son just had his offer accepted 325
he got I think 10 k off the asking price so 315
I think his rate is 4.9
he has a huge deposit over 80k and still has around 20k left
no debts or credit card

sellers accepted straight away as my son is in a good position no chain first time buyer big deposit

No chain from the sellers as they own the house next door which they will be selling or renting out later so said if they find a house they will just move next door to break any chain

house Is also a forever type home
3 beds 2 bathrooms
It’s been totally renovated

huge proper garden office at the end of the garden
you could just move in with your clothes and furniture
they already have all the furniture they need as I bought it for the flat they are renting

he is buying with his partner but ring fencing his deposit and there friend who lives with them at the moment is going to move in with them as a lodger
as it’s not far from where they live at the moment

partners parents are going to pay solicitors fees and moving fees and I’m going to buy him all of his white goods

if he was buying something that he had to do up I would tell him to work
but this house is really lovely

Well you were the one who mentioned a comfortable 4 bed 🤷🏼‍♀️

and indeed it is for us two, but it’s not a six bed mansion. What is your point, because I’m fucking missing it big style. Do tell me what I said that you can’t understand and I’ll spell it out. Your post was just … I’m not sure 🤔 no idea what point you were making but I’m clear on my own. Live within your means and it will be ok.

your point is ….have a dig at someone else for no reason. Ok sweetie 😘