Stick or Twist

grabya

Hi All

current situation is

recently married, no kids yet
household income circa £60k/annum / £3500/month
2 bed terrace house value £115k, mortgage just paid off:T
No loans
HPs and credit cards = £600 month (mainly on two cars needed for work purposes)
Currently saving around £1k/month @ 4%ish in ISAs/regular savings accounts

Hoping the family will grow in the next 12-18 months and we would like to move up the ladder in the coming years.

So my question is, given interest rates are low and 4/5 yr fixed mortgage are at 3 - 3.5%, and some 'experts' are predicting they will rise in the next 6 - 12 months, do you think it would be worth looking to move up the ladder sooner.

There is a decent new estate under construction around our favoured location and we would probably qualify for a PX deal which would allow us to move quickly. We would need to borrow a bit more than we would have wanted at moment but could direct some of our savings towards mortgage overpayments

Or is it worth sitting tight and building up the deposit, putting the house on the market and seeing if anyone bites?

Cheers

cattie

Personally I'd be thinking of making the move before the family expands, providing you think that just one salary 'til your partner is able to go back to work is enough to support the mortgage.

There is no harm in finding out what kind of PX deal you'd get on the new development before making up your minds if you want to take this route to a new home.

Well done in having the mortgage on your current home paid off by the way!