are they signs to pull out?

jimflagenback

Purchasing a home we have been after for sometime, however there have been a number of hurdles recently which seem to be telling us to pull out:

- A number of issues came back on the survey, these have been picked up, we renegotiated to a lower price and are proceeding. It is still a fair whack but more manageable.

- I have just had a month off work due to illness, still off but improving, hoping to get back to work very soon, awaiting docs go ahead, this has been a worry to my earnings which are the main share of being able to cover the mortgage each month

- Our back up money from another house sale has evaporated for now - the sale has fallen through and was going to be our cushion for unexpected events

- Mortgage products are to be increasing in & terms and we are a bit worried about weathering the BoE interest rates that will come eventually, however we have done the some and could afford it at 12% if it came to it. We have a deal sorted at present.

- other cheaper smaller houses are coming on a reasonable money, we are in love with the larger house and know it will be a good long term prospect for family and space etc , however it is a stretch and the stretch is the worrying element

These have all happened within the last 4 weeks up to today

Are they signs to pull out ?!?!?!, we could still afford it however it seems to be getting harder and harder to stick with it as these things come along!

grateful for other perspectives... Jim.

fraser

sometimes it is good to hang in there and do it

what are the numbers like?

sonastin

Is your offer fixed rate and how long for?

Do you still have the other house and is it still up for sale and can it still be used as a cushion when it eventually sells?

(rhetorical - you don't need to tell us but need to think about yourself) Is the illness the sort of thing that is likely to come back / have a long term effect on a) your general health and b) your earning power?

are you still in a position to sort out the things that the survey picked up (i.e. do you feel well enough to manage the workmen / DIY as planned when you renegotiated the price)?

Have you got a good idea how secure your income is (health issues aside) and whether or not there is a real prospect of advancement / pay increase?


I think you might just be having a case of the wobbles - not unsurprising if you have been ill for a few weeks but only you really know if they are serious issues or not in your circumstances. It is worth stretching for your forever-home, but not over-stretching. If you have a fixed rate mortgage and a (relatively) secure job, you should be able to weather any immediate interest rises / price crashes with enough warning if you need to make changes before the fixed rate ends. But only you can decide if it is really worth it.

jimflagenback

we presently have a tracker deal (no ties) that would represent 27% of net pay, a 5yr fix would be 31%

yes other house is on the market and will be sold eventually, so that money will come

illness is short term or seems to be, have 6 months full sick pay on my contract, plus already have critical illness and mortgage payment protection 75% of salary

we will have the money to sort the survey items, immediate priority a roof repair but should be fine

job is secure and I am will into my employment there is a growth area so no problems there - the wife is certainly twitchy about the costs, her first time contributing to the mortgage and our first home owning together

It is the wobbles, we love the house but cannot ignore the finances, concerns about not being able to take holidays etc. we have used the budget planner from this site and have a good surplus based on existing rates, only £200 per month for the fix, am thinking the fix is the way forward because of the worries!

thanks for the replies

sonastin

fixing would bring you a bit more peace of mind. I've almost always paid more than I needed to for my mortgage through bad timing, but its been worth it to me to not worry about interest rate rises (or falls as they turned out to be at the time!)

jimflagenback

are those % of net pay bonkers?

sonastin

The mortgage I'd planned on taking out is about 35% of my take home. But there are problems with my house so might be renegotiating on price and %ages might change. For me its going to be really tight but I know that my job is as secure as they come in this climate and I am highly likely to be getting significant pay rises over the next couple of years. (Lots of training and succession planning for a last-out-turn-the-lights-off role within the company). Bit of a gamble but its my forever home so its worth the stretch.