Mortgage Rate Rises

[413x]

Its not about being smart, its about not being stupid. People should be saving where they can, contributing to pensions and living within their means. Its not like we have been predicting the future, we just didn't fancy the risk of living at the edge of our means and a large even causing us massive issues. A large event could be one of us not working for 6 months etc. My partner has just gone off on maternity for a year which we can afford because we didn't take out the max mortgage we could have.

None of this is smug "told you so". We are about to have to remortgage at the end of the year and will probably be looking at a 5.5% rate. We will be fine but I'm damn happy that we don't have a £400k mortgage instead of a £200k one.



A bank stress test is basically saying "can you pay for this" and the customer saying "course I can". Its not like they run a fine tooth comb through your finances and watch you like a hawk and send you messages at night saying "noticed you just got a new lease car, you still good for that mortgage money".

People have had it so good for so long that they did live at the edge of their means because they felt there was little risk to it. As long as the status quo didn't change they would be OK. Well its changed. Most will be OK, plenty won't and some of those people will have been spending like it was going out of fashion for years with no thought of having a rainy day fund or any sort of plan for when things aren't so good. Those people get no sympathy from me.

A 400k mortgage would cause me much anxiety. Would need double the wage to feel comfortable.
Me and my partner are fortunate we don't really want a big house.
Big house = more house work. More upkeep etc.

Determined that if we upscale (might be) pay off the extra with savings.


Maybe as time goes on people will be forced into evaluating need and want. Do I really need that massive house? Is it worth a load more slaving away for more space?

My parents house is huge. It's a burden and it's filled with tat.

Obviously it's different if you live in an expensive area and expensive = tiny.


I'm Still not sure if there are too many properties that are massive and that these may stagnate in price if they become less desirable. And medium sized detached will end up the most wanted.

 

[flea.rider]

A 400k mortgage would cause me much anxiety. Would need double the wage to feel comfortable.
Me and my partner are fortunate we don't really want a big house.
Big house = more house work. More upkeep etc.

Determined that if we upscale (might be) pay off the extra with savings.


Maybe as time goes on people will be forced into evaluating need and want. Do I really need that massive house? Is it worth a load more slaving away for more space?

My parents house is huge. It's a burden and it's filled with tat.

Obviously it's different if you live in an expensive area and expensive = tiny.


I'm Still not sure if there are too many properties that are massive and that these may stagnate in price if they become less desirable. And medium sized detached will end up the most wanted.

what size is your house ?? floor plan ?

 

[413x]

what size is your house ?? floor plan ?

Quite small. It's a 3 bed. But really a 2.5 bed.
See if I can find the old advert

80sqm

 

[ci_newman]

Quite small. It's a 3 bed. But really a 2.5 bed.
See if I can find the old advert

80sqm

80sqm is still bigger than most families sharing the same space for 4 or more people too though.

80sqm IS big for a child-free couple.

At 144sqm, I still have less sqm/person than you do...

 

[mattyprice4004]

80sqm is still bigger than most families sharing the same space for 4 or more people too though.

80sqm IS big for a child-free couple.

At 144sqm, I still have less sqm/person than you do...

Just me and my wife in a 140sqm 4 bed - the extra space is very handy!
Some are happy with a cozy place and some like room to roam

 

[neocon]

I wish I was sold up and renting now, I bet there's going to be some bargain properties coming up for sale over the rest of the year.

If what all these commentators are saying is true, people who have over extended will be forced to sell up and down size.

 

[413x]

80sqm is still bigger than most families sharing the same space for 4 or more people too though.

80sqm IS big for a child-free couple.

At 144sqm, I still have less sqm/person than you do...

I thought 80sqm was about average for a house? (mean or median, no idea. Probably mean!)

I've always thought this house feels slap bang on average.
Some people would love it, others would look down on it.

I think ideally, with WFH another bedroom would be nice. And a orangery too. But no more than that. My parents house is cavernous. Great for a family. But just 2 people? Seems kind of "barren"

 

[jaybee]

I wish I was sold up and renting now, I bet there's going to be some bargain properties coming up for sale over the rest of the year.

If what all these commentators are saying is true, people who have over extended will be forced to sell up and down size.

Define bargain? Is there such a thing if you only own and/or plan to own a single home given that the market rises and falls generally together? i.e. A bargain house comes along, but yours is also worth much less. Erodes any potential upgrade.

If you are in a position to buy a second or more home as an investment then yeah, I guess "bargains" could present themselves on the basis that you buy to let, and wait a decade.

I don't think the term fits or is relevant to even a first time buyer if you'll only ever own a single home for the same reasons. So what if it triples in value. Most people don't generally downsize in the future to release equity.

 

[fez]

I thought 80sqm was about average for a house? (mean or median, no idea. Probably mean!)

That sounds a little on the small side. I think our 3 bedroom is ~125 but I guess thats got a large kitchen and therefore a larger overall footprint.

I think ideally, with WFH another bedroom would be nice. And a orangery too. But no more than that. My parents house is cavernous. Great for a family. But just 2 people? Seems kind of "barren"

Well la dee dah, check you out pining for an orangery. Lofty goals my friend

I just want a double garage and a drive so I can park outside my damn house.

 

[413x]

That sounds a little on the small side. I think our 3 bedroom is ~125 but I guess thats got a large kitchen and therefore a larger overall footprint.



Well la dee dah, check you out pining for an orangery. Lofty goals my friend

I just want a double garage and a drive so I can park outside my damn house.

Conservatories are naff. But I'd love a dining room/orangery. I love my House plants and the light you get in them is fab!


We have a car parking space. If ripped up the front garden could get 4 - 5 cars on it. And one in the garage!

Its a small house that looks huge on pics. People think it's a huge house. I tell them it's small. They don't believe me. Come over... "oh it is small"

There's a joke in there somewhere!

 

[Uther]

Still happy enough in the same 2 bed end terrace we've been in for over 20 years. We looked at bigger houses when we were younger but naah, this'll do. Even raised a kid in it. But it's always been somewhere to live,not an 'investment'
Cheap to run, easy to look after. Maybe we'd change our minds with a lottery win, but as you get older you seem to want less 'stuff' in my experience.

 

[BongoHunter]

Having a lot of space at home can be one of the best luxuries if you can afford to do it - makes a house more flexible, and means you can stay in a house for a lot longer potentially. When considering how much moving house costs I think it's worth stretching for!

 

[Jono8]

Having a lot of space at home can be one of the best luxuries if you can afford to do it - makes a house more flexible, and means you can stay in a house for a lot longer potentially. When considering how much moving house costs I think it's worth stretching for!

Luxury = light and space

 

[Hagar]

Having a lot of space at home can be one of the best luxuries if you can afford to do it - makes a house more flexible, and means you can stay in a house for a lot longer potentially. When considering how much moving house costs I think it's worth stretching for!

Or a well designed small house with space for storage and a place for everything. Proper shaped rooms without intrusions and each basically nearly a square. Easy and cheap to heat or cool and easy to clean.

 

[413x]

Light for me is more important than space.
Its something I'll be keen on looking at in next purchase.

As it will never be more than 2 of us. Space is less of an issue.

 

[Jono8]

Space is wonderful though. Space to move, space to do things, space to put things without feeling cramped etc.

 

[BigT]

Space is wonderful though. Space to move, space to do things, space to put things without feeling cramped etc.

I understand where you're coming from but I think it's more nuanced than that. Large space in rooms you use I'd absolutely agree. But how many such rooms would you need?

I'm lucky enough to have a large-ish house despite being just two of us and having been in it ten years it is clear that the main lounge, office, kitchen, master bedroom, ensuite and family bathroom are the rooms for us that benefit from space and light we have. I'd happily trade the other rooms in the house for bigger versions of these even if ultimately the entire square footage was smaller. Frankly the other bedrooms and reception rooms we have are just things I have to clean and pay to heat for no benefit really.

Also, as you mention, space for storage is important - I thank the lord for the number of boarded attics I have and wish we had a layout that facilitated more easy access storage (sadly 600 years old and listed means that there's not really much scope to do that)

I used to scoff when I was younger at property shows on the TV talking of flow and clever use of space etc. etc. but it is ultimately really, really important to your enjoyment of your home and sometimes more so than overall size of property alone.

 

[krooton]

So WFH has meant space is even more of a premium for us.

Luckily I get the office/study (single bedroom sized) and the wife works in the lounge. And the lounge is big enough to to seat 6 people, space for us to put down 2 yoga mats and work out together, plus we have a treadmill in there.

Once you get used to space, it is nigh on impossible to go back until that space becomes a detriment, like a 90 year old having to keep a giant house clean and heated.

 

[HangTime]

Space is the number one thing I look for in houses, first thing I do before looking at photos is go to floorplan and see if it lists floor area, room sizes etc.

That said I do think you can end up with 'dead' rooms that get rarely used if you have a big house relative to number of inhabitants. When we moved here, we basically would eat in the kitchen and only used the dining room when we had guests. Then there was a guest room with ensuite that again never got used and became a bit of a dumping ground. Since then we've had a couple of kids so the space is used now but it wasn't really needed for the first 10 years of living here. One of the points I agree with they make on property shows is challenging people on how much the 'spare room' matters. How often do they have guests? Will a sofa bed in the study suffice? Does it really matter if the spare room is a bit on the small side? Everything has to compromise on something with a house purchase, so a smaller spare room might mean a better location, bigger garden or whatever.

A lot of the space in our house is just used for storage, we could probably get rid of over half our stuff without it impacting us at all. Overflowing wardrobes, boxes of old cds/dvds/games/books, mountains of kids toys, multiple old computers that haven't been booted in years etc.

When it comes to flow, I think it can depend a bit on what stage of life you are at. We live in a town house which was fine when we moved in about 15 years ago. But now we have a family it is a bit suboptimal having to go upstairs to the living room. A big open plan area on the ground floor would probably suit us better now.

 

[Blackjack Davy]

I wish I was sold up and renting now, I bet there's going to be some bargain properties coming up for sale over the rest of the year.

If what all these commentators are saying is true, people who have over extended will be forced to sell up and down size.

The days of the last housing crash when repossessions were happening right left and centre are long gone nowadays everyone just expects the govt to step in and give hand outs, they've made a rod for their own back i.e. covid and fuel payments last winter. Now its expected that the magic money tree will giveth fruitfully