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A good time to move?!
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lovelylouca
Posts: 32 Forumite
I'm looking for a bit of reassurance... I'm looking to move house (new mum to 4 month old and needing somewhere bigger) I've been in my current 1st property for just over 5 years and recent valuations suggest that I could have up to 35k equity in it - whilst this has fallen by 10k in the last 12 months I'm hoping that the percentage game will mean that I can afford to buy a house (c160k) in an area that 12 months ago was just a dream (c190k).
I've put my property on the market (HIP just being processed) rather than delay till beginning of 2010 (my initial plan) fearing that any recovery of house prices will again price me out of my preferred area and property type. What this means is that I won't be able to put down a bigger deposit (5k less).
I've sought mortgage advice from an independent, whole-of-the-market broker who impressed upon me the advantage of having a 25% deposit if possible, since this "buys" better rates from mortgage companies - I just don't think I'll be able to do it, particularly since I have 3.5yrs of a 5 yr loan of 10k (for a new car) to pay off - which has been made a condition by one potential lender. I'm going to sell the car and recoup 5k of that loan so it'll only eat 5k of my potential equity.
The maths that encouraged me to sell now rather than wait a year still stand - I've been offered a mortgage of 132k plus any remaining equity from the sale of my property - but it'd be on a 5.7apr (rather than 4.7 with a 25% deposit) for a 5year fixed term. My head is awash with %, aprs and thoughts of haggling hard with other beleaguered home sellers.
Am I doing the right thing by not waiting 12 months?
I've put my property on the market (HIP just being processed) rather than delay till beginning of 2010 (my initial plan) fearing that any recovery of house prices will again price me out of my preferred area and property type. What this means is that I won't be able to put down a bigger deposit (5k less).
I've sought mortgage advice from an independent, whole-of-the-market broker who impressed upon me the advantage of having a 25% deposit if possible, since this "buys" better rates from mortgage companies - I just don't think I'll be able to do it, particularly since I have 3.5yrs of a 5 yr loan of 10k (for a new car) to pay off - which has been made a condition by one potential lender. I'm going to sell the car and recoup 5k of that loan so it'll only eat 5k of my potential equity.
The maths that encouraged me to sell now rather than wait a year still stand - I've been offered a mortgage of 132k plus any remaining equity from the sale of my property - but it'd be on a 5.7apr (rather than 4.7 with a 25% deposit) for a 5year fixed term. My head is awash with %, aprs and thoughts of haggling hard with other beleaguered home sellers.
Am I doing the right thing by not waiting 12 months?
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