Should we sell and move back to parents?

uberkiwi

Hey guys,

Yes we took out a 100% Mortgage over 40 years, 5 year fixed at 5.99%. I know it was a terrible decision but hindsight is a wonderful thing.

The 20% has already been off, we dont owe it back - it was a gift.

We have decluttered yes, down to the barebones of whats required - although the boy's toys keep getting higher and higher...

I guess its more of a case of we want to move as the next house will be our 'home' and as I mentioned kids do come into the equation.

If we did stay put, it would have to be about 3-4 years before we could even think about selling due to the pressures of bills etc. We dont struggle now as such, but saving/overpaying any decent amount of money is getting more difficult by the day as im sure it is for some of you

*Robin*

uberkiwi wrote: »

Would be wise to come off the property ladder and 'start again' as FTB?

Is it possible to be First Time Buyers more than once? Surely the clue is in the words..

uberkiwi

I checked with HSBC, and they did say we would be classed as FTB again as we have no chain.

Im not saying thats gospel, but just what I was told?

JimmyTheWig

*Robin* wrote: »

Is it possible to be First Time Buyers more than once? Surely the clue is in the words..

Not First Time Buyers in the sense of qualifying for the (now old?) scheme of being excempt from stamp duty. But to all intents and purposes they would be first time buyers - i.e. they wouldn't have a property to sell which would be a benefit to anyone they put an offer in to.

Fire_Fox

uberkiwi wrote: »

Hey guys,

Yes we took out a 100% Mortgage over 40 years, 5 year fixed at 5.99%. I know it was a terrible decision but hindsight is a wonderful thing.

The 20% has already been off, we dont owe it back - it was a gift.

We have decluttered yes, down to the barebones of whats required - although the boy's toys keep getting higher and higher...

I guess its more of a case of we want to move as the next house will be our 'home' and as I mentioned kids do come into the equation.

If we did stay put, it would have to be about 3-4 years before we could even think about selling due to the pressures of bills etc. We dont struggle now as such, but saving/overpaying any decent amount of money is getting more difficult by the day as im sure it is for some of you

It sort of feels like you want to make the same mistake again, buy something that in all honestly you cannot afford. You need a 10% deposit and all the costs of buying and selling, and really three months mortgage payments set aside in case the worst happens and you cannot work. The state doesn't pay the first three months and not if it's quite a new mortgage IIRC, and the rules could well get stricter.

I think you need to prioritise, you want to be a homeowner AND have a larger place AND a baby (smaller income/ larger outgoings) and it's too many 'wants' all at one. You could have two of the three you just need to decide which are most important to you as a couple.

1. Sell up, rent a larger place and increase your family
2. Stay put, make the space work and increase your family
3. Hold off increasing your family, stay put/ move in with relatives and save like demons
4. Hold off increasing your family, buy a larger house but take in a lodger for extra income.

If you are not struggling there are probably loads of areas you could save if you set your minds to it. Have a thorough read around MSE, there are entire families living on about £4K after mortgage and council tax. Some of the challenges are mind boggling, feed a family healthily for a month on £100 for example.

tinker15

I have glazed over this so sorry if I am duplicating suggestions.
Would it be worth you going back to parents for a while and rent your property out, that way the renters will be paying your mortgage & you will also be able to save for a deposit for a bigger house from the mortgage payments that you would have made yourself.
This way you are safeguarding yourself to a degree if the property market should start to move up as you are still on the property ladder. I nearly sold my home a few years ago to rent and I am so glad that I didn't because I would have been off the property ladder now as the market boomed.
Admittedly if the current market goes the same way as the last boom (early 90's) then it will be a few years before it moves again.
Good luck & I hope everything goes well for you.