Second steppers struggle

sKiTz-0

Of course I meant 60%LTV. 40% deposit is what I am aiming for as that seems to unlock the best rates.

Pixie5740

Doozergirl wrote: »

40% LTV is a 60% deposit! Expecting help is certainly a case of wanting the cake and eating it.

The grass is always greener...

Sorry missed the LTV next to the 40%. Someone with a 40% deposit doesn't need help from the government so someone with a 60% deposit sure as hell doesn't.

Although it turns out the OP did mean 40% deposit. Two wrongs somehow making a right.

sKiTz-0

PasturesNew wrote: »

you'd have to pay £250k for a 2-bed mid terrace!!

Ouch!

My thinking behind making such a big step is that with each move comes extra costs (stamp duty, solicitors fees, searches, mortgage fees etc) so the best scenario is getting to where you want to be in as few steps as possible.

I'm looking for my next house move to be my final one. There is only me, so I don't need somewhere massive with loads of bedrooms. Detached would be nice - neither of my neighbours at the moment are as considerate as me. As well as not having to put up with their noise, it would be nice to be able to play films and music and not be worrying about how much noise I am making.

marksoton

sKiTz-0 wrote: »

How so? As a single guy paying this mortgage on my own, what I'm trying to do by securing the lowest rate is make my money work harder for me (paying less interest) and also making sure my monthly payments are affordable.

At the moment, just under 45% of my wage goes towards paying my mortgage only. This is higher than I would like it to be and higher than various sensible recommendations I have seen over the years. Going forward, I am going to have to borrow this money over a longer period (25-30 year term) so I would like to get my monthly payments down to ~30% of my income.

Yes i get that,i'm in the same position.

But if 45% of your wage goes towards your current mortgage how on earth do you expect to upsize so drastically?!

Extending the term will increase the interest you pay. Completely the opposite of what you've been trying to achieve by over paying...

Pixie5740

OP, if you're a single guy living in a 2 bedroom house what's wrong with staying where you are? If you meet someone and want to buy a bigger place then you'll have 2 incomes and potentially 2 properties to sell to help fund the purchase.

I almost bought a much bigger home than my current one but decided I would have a more balanced life with somewhere more modest and an earlier mortgage free date.

Larger properties generally have higher maintenance costs. Besides there's a limit to how many toilets I'm prepared to clean.

sKiTz-0

marksoton wrote: »

Yes i get that,i'm in the same position.

But if 45% of your wage goes towards your current mortgage how on earth do you expect to upsize so drastically?!

Extending the term will increase the interest you pay. Completely the opposite of what you've been trying to achieve by over paying...

The 45% is the minimum payment, plus my overpayment. I've been trying to build up as much equity in this property to put me in a beter position when I come to move. My minimum payment equates to around 30% of my take home pay. The next property I will not be as aggressively overpaying as much as I will not be trying to build up so much equity so quickly.

I would have to borrow over that kind of term to keep the monthly payments down. If I drop it to even 20 years I would be in trouble if/when interest rates rise.

Pixie5740 wrote: »

OP, if you're a single guy living in a 2 bedroom house what's wrong with staying where you are?

Mostly, inconsiderate neighbours. As a plus, I would very much like a garage to store my motorbike - I feel pretty vulnerable having it sat on the street outside my house. Maybe a little garden space to allow me to grow some crops would be another bonus. At the moment I have what could only be described as a 'back yard'.

A small, 2 bed place would do me for inside space. That's what I have now and am pretty comfortable space-wise.

DRP

find yourself a wife, husband, partner, or get a better-paying job?

that's how most people do it.

BrassicWoman

rent an allotment and a lockup?

sKiTz-0

DRP wrote: »

find yourself a wife, husband, partner, or get a better-paying job?

that's how most people do it.

I don't fancy partnering up with anybody, I work better solo. I have found that out over the years. Better paying job is an option. I'm at a loss as to what though, it seems easier said than done, but it would help.

BrassicWoman wrote: »

rent an allotment and a lockup?

That would solve a couple of issues, but I'm still stuck with noisy, inconsiderate neighbours. I've actually been on the local allotment waiting list since 2009!

Dan83

I know exactly what you mean, not my area there are ex-council house's and private house's on private housing estates, even if I sold my ex-council for top dollar and bought a real crappy private house, I'd need about 30-40k. It's just life I suppose