Want to move but not sure if I can

hufc2002

Yes our mortgage is repayment and we are currnenty paying £669 per month with £220 of this being an overpayment.

W wouldn't be willing to move for £85k, that would be a £22k loss. The sale price would have to at least match the balance of the mortgage , if not more i.e. £95k.

We are planning to have enough savings for a 10% deposit (circa £15k max). We have a loan which is due to be paid off at end next month which will leave us £246 a month better off too so will put this to one side also.

Not too sure what is happening with house prices in our area, will be interesting to see what the one currently for sale for further along the street sells for.

RAS

Have you actually checked whether:

1. the mortgage provider is recalculating the the interest owed on the principal daily, monthly or annually? Only be doing this will you know what impact your overpayments are having.

2. what reduction in the "normal" monthly payment would be achieved by making a lump sum payment of say £8K? If any????

Whether there are any terminal charges?

and played around with the fuigures on http://www.whatsthecost.com/default.aspx

Holding onto those savings could cost you a fortune or be the making of the deal but until you get the right information and do the sums, you cannot know.

hufc2002

I assume that the interest is cacluated either daily or monthly as the opening balance on my statement was £100,161.

Following 12 further payments as follows:

3 @ £668.59 (fixed rate 6.39%)
3 @ £449.21 (LVR 2.49%)
6 @ 669.21 (LVR 2.49% + £220 overpayment)

Balance @ 31/09/13 - £96,233 therefore nearly £4k paid off.

Redemption fee is £145.

Im not too sure what you mean bt 'what reduction in the "normal" monthly payment would be achieved by making a lump sum payment of say £8K? If any????'. Please can you explain?

Like I have set previously, the savings I already have I plan to use as my 10% deposit.

stebiz

Thought about Let to buy? If you convert this one to interest only the rent should cover the mortgage payments.

That leaves you with 10% for your new one.

JimmyTheWig

hufc2002 wrote: »

what is the possibility of us being able to afford to move?

If you are saying

hufc2002 wrote: »

there is currently a similar house a few doors along for sale priced at £90k.

and

hufc2002 wrote: »

W wouldn't be willing to move for £85k, that would be a £22k loss. The sale price would have to at least match the balance of the mortgage , if not more i.e. £95k.

then I would say that you have no chance of moving.

If a similar house is on the market for £90k and hasn't been snapped up already, I can't see you getting £95k for yours any time soon.


Forget about how much you paid for it.
If prices have dropped soon then that may mean that buying it in the first place was a mistake. But it doesn't mean that selling it now is necessarily a mistake.
Do what you think is best for the here and now and for the future. The past doesn't really affect that.

hufc2002

It's just gutting knowing that it's now worth considerably less than what we paid for it 6 and a half years ago.

At the end of the day, if the house rises in value then so will the next house we buy. Catch 22 scenario.

In hindsight we were first time buyers at the wrong time. Didn't have a deposit and took out a 100% mortgage but thats by the by now and there is no going back.

Some people I know took out 120% mortgages so it could be worse!

TBagpuss

Yes, it's gutting to think it is worth less - but on the other hand, you have had your own home for the past 6.5 years - and have not had to deal with a Landlord and all of the hassle which can so often go with renting.

I agree with Jimmy the Wig, if your neighbour's house hasn't sold at £90K , you are not likely to get £95k+ for yours.

What you paid for it, or what you need for your next step, are irrelevant - what is relevant is what it is worth in today's market.

If you stay put, as you say, both your house and any you may buy are likely to change in value - the upside is that if you stay put, you are chipping away at your debt and getting to a point where you can afford to move.

StuC75

Surely the OP is unlikely to have sufficient equity in the property to convert it to a let property..

stebiz wrote: »

Thought about Let to buy? If you convert this one to interest only the rent should cover the mortgage payments.

That leaves you with 10% for your new one.

hufc2002

StuC75 wrote: »

Surely the OP is unlikely to have sufficient equity in the property to convert it to a let property..

I am not interested in letting my house anyway.

While the rate remains low, I will stay put and carry on overpaying/saving.

JimmyTheWig

TBagpuss wrote: »

What you paid for it, or what you need for your next step, are irrelevant - what is relevant is what it is worth in today's market.

What you need for your next step is irrelevant in terms of how much you'll be able to sell for.
But it is very relevant to the question of whether to sell now or not.

If by selling now you'd have enough to buy what you wanted then go for it. If by selling now you wouldn't have enough to buy what you want then stay where you are.