Going up the ladder - cold feet

ben_m_g

It's good to get this out of my head, unfortunately OH is not money savvy, so all the onus is on me and I have no one to bounce idea off.


The house we have is great, quite location, new ish so energy efficient and no repairs, but no local amenities, too small and far from family (so no support if we do have another LO).
It's becoming a real issue, and will only get worse as LO gets older and in school.

We have found a great location, shops, bus routes and close to family, unfortunately this all comes with a hefty prices tag, prices are 10k more than current, we also need more room and another bedroom, so a sizable step in mortgage.

Thankfully, a recent pay rise will cover the cost of the additional lending, but it has me worried (after a redundancy out of the blue in 2012) i have since worked my bills so that we could get by, even if i had to take a pay cut.

Extra borrowing over a longer term could leave us in some real trouble.


I know there is unemployment cover, but even after looking online and going through a number of quote websites i'm still none the wiser.
We do need to move, and with LO going to school next year, now is a great time.

But i'm still concerned, am i over thinking this? or is this a normal decision everyone goes through?

lrb_2

When I bought my flat I never considered redundancy. I bought it just by myself and had no worries, I knew I'm capable of finding some odd job if needed.


I was alone, so things are different with a family.
Maybe having a contingency fund would put your mind at ease?

Also, is it possible that either of you will become redundant in the future? And is it difficult to find a job in your sector?

martinsurrey

Normal!

It depends on your risk appetite.

If you lost your job how long would it take to get a new one? 6 months of essential spending in the bank? 12 months?

Me and the wife run at about 3-4 months, but we can each support the house on a single salary and use the excess funds to pay down the mortgage.

dimbo61

If you need a bigger house closer to family then go and buy one.
The mortgage people will tell you if you can afford it.
Then build up savings of 6 Months of Income Just In Case.

penguingirl

I think this is normal. We are moving soon and have similar worries, although logically we know we'd be ok. I think a lot of it comes from being comfortable financially in our current home where we've not had to worry about managing to pay a big mortgage each month, to being back in the position of pooling most of our savings into a property and having a maxed out mortgage again.

ben_m_g

Just to clarify, I have three months pay saved so initially there wont be an issue.
I am sure that I can find 'a' job, but it will most likely be at least 10k less than what I earn now. (I have a specialist role which is few and far between, a similar role would mean a 120 mile daily commute.)

I pay all bills, mortgage is in my name only as I earn something like three times OH salary.

dimbo61

Many people have NO savings at all so well done on that front.
Now your lender will look at your Income with your current employer.
How far are you moving ? Can you still commute to work 60 miles is not that bad !
Maybe a super cheap to run diesel car
Life is about risks even getting out of bed in the morning.
Being careful about how we spend our income is What MSE is all about