Next move on property ladder advice

PinkJellyBean

Hi everyone,
I'm just looking for a little advice none of my friends or co-workers are property owners and my parents paid off their mortgages so many years ago they aren't much help.

Last year at the age of 22 I used a big chunk of my life savings to purchase my own first home the house is a small two bed end terrace I like my house and its in a good area but i don't love my house and I know its not my forever home just my first step onto the property ladder so now a year in I'm starting to consider my next steps.

I purchased my home for £75000 and have a £63300 mortgage which I overpay by £25 a month according to the MSE overpayment calculator when my 5 year fixed term ends in 4 years ill have around £57,000 left.

My goal house in my area is around £125000 three bed semi with drive and the terrace across the road from me that has the same improvements made to it that im currently doing to my house sold for £95000.

So how much of the £30,000 do i save and how much do i increase my mortgage by?
I know i can't save the full £30,000 in the next four years but half may! be possible at a push
thanks x

King_Slayer

You should visit a Broker and get some advise. I imagine your affordability will need to be considered and a Broker can work this out with you. After all it is their bread and butter.

ACG

If your selling your current property you will not need to save anything - assuming affordability fits.

Your house will be valued at £95,000.
Your mortgage will be £57,000
So that will give you £38,000 (lets say £35,000 after costs).

£125,000 purchase price,
£35,000 from the sale of yoru current property.
Means you will need a mortgage of £90,000.

If you have savings to put to it then you will need a smaller mortgage.

Jon_B_2

Why do you care so much? Do you have a family to upgrade into a 3 bed?

libf

Jon_B wrote: »

Why do you care so much? Do you have a family to upgrade into a 3 bed?

Some people like to have space. Or a garden. Or want an investment. It's not uncommon.

Let_Us_See

PinkJellyBean wrote: »

Last year at the age of 22 I used a big chunk of my life savings

I mean no harm, but I had to smile at your reference to 'age 22 and life savings.' Perhaps you started saving as a young child?;)

PinkJellyBean

Hi all never thought about a mortgage broker will definitely look into it when the time comes

And I want a drive as parking can be slightly annoying on a terrace road plus I'm working full time whilst studying towards a business degree and onto a masters in hr management hopefully so my spare room is full of paperwork , desks , bookcases it would be nice to have a spare room friends can stay in

And yes actually my parents opened a britiania savings account for me at birth and when I was around 6 I believe I started to do chores for pocket money each month my parent made me two jars one for save and one for spend half in each then I would take my savings into the bank I stared working part time at 13 and again half in savings half in spending by my 20th birthday I had £15500 in savings x

Thrugelmir

PinkJellyBean wrote: »

which I overpay by £25 a month

If you wish to move up the ladder more quickly. Then overpayments at this level are hardly going to make any difference. Find some ways of increasing this some more. Then you'll find that the savings in compound interest will start to kick in.