£50K short for my next house any options

cheggers

I am wanting a bigger family house, even selling my house and extending my mortgage to the most I think I can realistically afford I still reckon I am £50K short off my target I need for my family house.

Worse is the house I want is now currently £240K, and I know in 5-8 years it will be £310K. So then instead of being £50K out of my reach it will be £120K.

Any ways of raising the £50K

HelpWhereIcan

There probably are, but whether they should be done or not is another thing!! Your comment

cheggers wrote:

extending my mortgage to the most I think I can realistically afford I still reckon I am £50K short off my target

is the most telling to me.

But, if you post more details about income, sale and purchase price etc, I am sure there will be many who are willing to express an opinion on your options (or possibly lack of them).

A lot will depend on what options you have as far as lenders and deals go.

Hope this helps

Cristy

Do you have anything you could sell? I.e. car, motorbike etc.

Or would you consider moving to a slightly cheaper area to get the sort of property you'd like?

Or maybe you could consider either extending your current home or converting garage/loft to get extra space, or buy a smaller, cheaper home with potential for extension / conversion and do that instead?

Sorry, but there is no quick and easy solution to this. £50k is quite a lot. However, if you're looking in the same area, consider that any price increases in your dream house will be matched by your current home when you come to sell it, so the gap should stay pretty much the same. Good luck.

F_T_Buyer

Now you know what it's like for first time buyers. High house prices only benefit those leaving the housing market.

How you can say it will be worth £310k in 5-8 years I do not know. If people can't afford to move up the 'ladder' now, how will prices continue to rise? Apply a little logic, and the only way for prices to rise long term is for wages to catch up. If that is the case, you would be earning more, so you could afford your next house.

To answer your original question of how to raise £50k - save or get a higher paying job. Don't take on too much debt, you can see the trouble people get into on this website.

I could offer other solutions that are put to first time buyers. Why don't you get shared ownership? Why don't you get your parents to guarantee your larger mortgage? Why don't you rent a room out to some friends? Why don't you move to a cheaper area?

Those solutions doesn't quite sound so good now does it.

michaels

I know what you mean about the gap to move up - I am looking at properties that in the last 9 months have gone from just under 295k to 375k (+) wheras mine seems to have 'only' gone up from 235 to 265 making what would have been difficult into completely impossible...

cattie

Is it not possible for you to extend your house to make it more suitable for your needs?

£50k short of target is a heck of a lot of money, so it would be wiser to look at other solutions.

susieb

Have you checked mortgage rates, you may find you could get a long fixed term deal at a lower rate than you are looking at. Nationwide have a 10 year fixed at 5.18%

cheggers

cattie wrote:

Is it not possible for you to extend your house to make it more suitable for your needs?

£50k short of target is a heck of a lot of money, so it would be wiser to look at other solutions.

Extending is not an option, I would not get planning permission already looked into it before.

As much as my house will go up in value, it will never increase in line with the houses on the next step up in my area.

Moving to another area is not an option.

After selling my house, and some savings I reckon I could have £75K deposit, most I can upto on a 25-30 year mortgage is £200K, so it leaves me £50K short.

Jorgan_2

What about taking two steps to the move instead of a big jump. Try & find something that you may be able to add value to, do it up over the course of a year or two, sell it & put the profit towards buying the family home you require.

mpsavuk

Jorgan wrote:

What about taking two steps to the move instead of a big jump. Try & find something that you may be able to add value to, do it up over the course of a year or two, sell it & put the profit towards buying the family home you require.

All the while hoping & praying that houseprices don't fall over the next few years leaving you with the prospect of negative equity.

FaTB

cheggers wrote:

Worse is the house I want is now currently £240K, and I know in 5-8 years it will be £310K. So then instead of being £50K out of my reach it will be £120K.

How do you know that in 5-8 yrs time this house will be worth £70k more ??

I think that with current debt levels, affordability, economy on the knife edge of recession, and IR's looking very likely to be on an upward trend for a while, its very likely that even in 5-8 yrs that this house will be worth similar or maybe even less than it is now !!