Assuming by 'more suitable' you mean a house that is more expensive than your current home then trashed house prices is probably a good thing (for you). The tidal wave of mortgage cost won't be a high because you will need a smaller mortgage for your new house as it should have fallen in price by more than the value of your current home.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Yes and no.. hard to know until it happens.. yes the plan was something bigger so perhaps more expensive depending on location (we're fairly flexible) but depending on what happens things like LTV change (currently 65% ish) and what does that mean Vs the rate we're on now which is 2.3% Vs whatever it will be when the time comes.
Honestly there's no real way to know, all I know is right now we'd be paying £400 a month more for our house which we can afford but is technically money for nothing.. which ironically is what people say about renting.
It was a weird place to be thinking that if we ended up for example at 7% we couldn't really afford the house we're in now, which is nuts as 2 decent earners with no debts not overstretched etc means lots will be in much worse shape through no fault of their own.
I think there's a bunch of factors so it really depends on the individual:
- What relationship with the family members also living in the house is like
- Practicality of the home i.e. do you get any privacy, bathroom situation, parking (if needed) etc
- Location of the home, does it make sense for work, transport etc
- Any limiting factors like disabilities etc (on both sides e.g. do you have a relative that needs some form of care). This works both ways though, living with someone that has a serious health condition can be quite mentally draining, sometimes you benefit from getting away from that.
- General affordability versus living elsewhere
Just spoken to my old lender and they were ok with me cancelling the direct debit..will not cause any issues
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Associate
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Surrey gonna Surrey...
Detached £1.2m
Semi £585k
Terrace £418k
Flat £293k
That is absolutely insane!
Even at current completely inflated prices I could buy 2x of my 3 bed detached houses in a nice street for approximately £380,000. You can't even buy one terrace in Surrey for that.
At the price I paid back in 2018 for my house I could almost afford to buy 3 of my houses for the price of 1 average Surrey terrace at current prices!
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Caporegime
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You paid £1.2mil for a house up in Scotland?!
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I messed that up a bit! It should have read 3 of my house for one Surrey Terrace.
Caporegime
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LOL, i was hoping to see a Mansion of some sort from you for a second.
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Well this is a 15 minute walk from my house!
A 3 bedroom apartment went up for sale within this building for offers over £285k just last year. Cheaper than a Surrey flat!
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Yeah but I don't have to live in Scotland?
I joke.. I come from Huddersfield, I'd happily go back and I know how mental it is but it's not practical for me to be in my line of work and not be somewhere closeish to where I am. I mean I definitely couldn't earn what I do in Scotland either but whether it would all net out.. not sure.
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If your job can only be found in the South East and it pays really well then it makes sense to put up with the silly house prices I suppose but it's not for me. Me and my Wife both work part time and from home for wages that would seem pitiful to most people down south but I would not want to move down there even if you gave me a million pounds. I am not saying that in an anti English way just that I love where I live now and the fact we can work so little and still be able to afford to lead a modest but comfortable lifestyle with little stress. The idea of having a mortgage of multiple hundreds of thousands of pounds to live in a similar house to ours which would force both of us to work full time, with long commutes every day, sounds like a life not worth living.
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Honestly more I think about it we are looking good even buying as recent as 2020.
Because we are looking to move in 2-3 years. So happy with house price falls.
Mortgage fixed until 2027.at which point I think if really had to could pay off 50k in that 5 years. Even 60.
No other loans.
We both work from home full time. So area agnostic.
With inflation being significantly higher than savings, makes it no bother to spend on things that are inflating that you could sell later.
I've engineered us best I can to be immune to this.
Obviously the important thing is keeping job. That obviously scuppers everything!
This is why base rate rises are so cruel. I could easily be screwed without that mortgage fix. And life would be completely different. And we'd be on the other side of the coin.
It would mean the van idea I have is a non starter.
Because we are looking to move in 2-3 years. So happy with house price falls.
Mortgage fixed until 2027.at which point I think if really had to could pay off 50k in that 5 years. Even 60.
No other loans.
We both work from home full time. So area agnostic.
With inflation being significantly higher than savings, makes it no bother to spend on things that are inflating that you could sell later.
I've engineered us best I can to be immune to this.
Obviously the important thing is keeping job. That obviously scuppers everything!
This is why base rate rises are so cruel. I could easily be screwed without that mortgage fix. And life would be completely different. And we'd be on the other side of the coin.
It would mean the van idea I have is a non starter.
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Soldato
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There is a risk!Van idea would be fine
Its just that it would become your primary residence
It is so sad how someone nearly same as myself could be on the flip side of this just due to picking different length mortgage terms
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Exactly, and still some knob will come along talking about being good with money or living within means.
For the vast majority they're just living and rolling the dice.
No one knows.
You make the best decision at the time and hope you get lucky.
In hindsight a 10 year fix would have been sensible, but in a relationship/joint mortgage, you have to be practical and think of what might happen in a break up.
Hence not a long fix.
True, but even though it might be financial manageable, it still sucks. I've posted before about how mine has gone up £600, could i afford for it to go up another £600, yeah sure i could. But by that point i'd be paying about 3 times in interest than i am off the capital and that's what sucks!
And for a lot of people £600 would tip them over the edge. That alone is £150 a week extra to find, before you even look at everything else going up.
They probably don't even have to be that close to the edge either, £150 is quite a sum for a lot of people.
Yeah true. We're lucky i guess that we didn't overstretch too much, but i guess the point is that even without overstretching, £1200 on top of other increases elsewhere is brutal!
Much the same position and it really is money for nothing, like I'd have to I'll back savings/pension contributions which I'd argue is already a societal good because god knows I'm trying to look after myself so nobody else has to!
I get we can't stay at 0% forever, I'd like to think we can get back to something more rational like 3-4%