help please

kunekune

The theory is that as you get older you (a) earn more and (b) your first house goes up in value and (c) you pay off the original mortgage, so that you have more equity and an afford a bigger mortgage for a bigger place. If your wages are static or prices are falling or you can't actually even afford to pay off the first mortgage, it doesn't work, and you stay on the bottom rung of "the ladder".

Wickedkitten

tonycollis8608 wrote: »

Thanks all for your views, i realise we would proably easy manage to have children in this house, but for the future if we did want to move how could we make it possible, we took a mortgage of 108,500 when we bought the house it is now worth bout 105,000, our current mortgage is interest only aswell im just a bit confused how we could ever move on, thanx all for ure time

I doubt if you bought it 2 years ago it has only lost 6k off the value of the house. Not only that but you've had your mortgage for 2 years on an interest only, you have no savings, and you want to start a family.

If you are wanting to move in the future, you might be better off getting your mortgage switched to a repayment mortgage if possible so you can actually start paying off some of the capital.


Actually you might want to actually see if you can get a true value for your house so you can work out how far into negative equity you might be.

poppysarah

Don't worry about negative equity. Stay in your current home. Switch to a proper mortgage so you're paying it off (You do have a way of paying back the capital at the end of the IO mortgage don't you?)
Assess your life. Why isn't your house big enough? Is it cos it's full of stuff you have as hobbies? Life is often about sacrifices and working hard and not always about having everything you want.

Kids are very expensive emotionally, and they can drain the money from the bank quicker than anything else. Save up. Or just go mad and have some kids - get tax credits and manage that way.

but whatever the stork might have told you, you do not need a big house to have a baby.

devilot

Just a pointer, we've been in a 2 bed mid terrace for 10 years with one child (boy), we had to quickly plunge for the first thing we could get after I got pregnant unexpectedly, and it lasted us fine for 7 years until I got pregnant again and had a little girl:o. Even so, we've managed for a couple of years, the baby being in our room to start and then in bunk beds with her brother for the last year or so - we are in the process of moving right now, to a 3-bed semi in a 'family friendly' area, but the 2-bed in a town centre has done us alright for a long while.

If you really want to start a family, you might have to realise that we all have to put up with 'less than ideal' to start with, we just have to take whatever life and circumstances throw at us.

I wish you luck!

Richard_Webster

If OP took out an interest only mortgage 2 years ago then his monthly payments should have been reduced significantly with interest rate cuts. So he should use the extra money to reduce the amount he owes the lender.

bob79

Richard_Webster wrote: »

If OP took out an interest only mortgage 2 years ago then his monthly payments should have been reduced significantly with interest rate cuts. So he should use the extra money to reduce the amount he owes the lender.

Presuming that the OP has a tracker mortgage:beer:.