To Gamble or not to Gamble?

toughtobeabug

Hi, Im not very good at making decisions and was just after other peoples oppinions. Currently with A&L on their SVR 4.99% with balance of 131,900 (We paid £150,000 in october 2006) houses tend to sell quick in our rod due to popular local primary school in the area.

we are planning on starting a family and want to secure fixed payments so we know what we will be paying for at least the next two years, a similar house on our row of terraced houses has gone up for offers in excess of £165,000, difference is its mid and our property is end of with little extra land, with exception of the kitchen our property looks more uptodate.

We can get a two year fixed for 4.85% arr fee £199, we would need them to price at least 165K to get this rate if they dont we would lose the arangement fee. I hate the property market always being a gamble

So would you gamble or not gamble? sorry if a bit long

Cannon_Fodder

[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=Kent&s=01 September 2006&e=01 December 2009&t=1[/IMG]
Land Registry show prices have not got back to the October 2006 yet. Let alone gained as your neighbour thinks. Ambitious, on paper.

A terrace is unlikely to be above average in performance. Which means you won't have enough equity to secure a decent LTV deal. You might come in around 90% at the mo.

Wait a bit longer for prices to recover, overpay while doing so, and check out longer than 2yr Fixed when you have a decent LTV, imo.