Play it safe or go for broke?

RoxieW

We're planning on moving next year and have a bit of a dilemma. We have a joint income of £38000 and have seen some beautiful houses at around £200000. We'll have saved £10000 and should get at least £10000 from our current house so would need to borrow £180000.
Do any high street lenders with decent rates lend at this amount?
I'm aware that the income multiple is about x5 and so is high and my husband is reluctant to stretch ourselves. However, I think we should go for it. My reasons are that
a) we can afford the repayments with a bit of leeway should rates go up,
b) we'd like this to be our final family home (we have two young boys) so i feel we should stretch ourselves in the short term rather than play it safe and keep saving to move again in future
c) we're both young (25 and 26) and so our wages are likely to rise (hubby has had on average £3000 per year rise)
d) at the minute i'm only working a few hours as our youngest is not at school yet. when he starts school i'll be increasing hours.

Hubby on the other hand is concerned about stretching ourselves and worried about keeping up with rate rises. I think all the horror stories of repossessions at the minute are scaring him. But then, if the situation got impossible, I'd just increase my work hours.

Any thoughts/advice would be appreciated.

pollyanna24

Whilst I don't think we are in our final family home, it is perfectly adequate if and when we decide we want to have a family (3 bed terrace). If the opportunity arose now, would I go for the final family home? Not sure that I would because I'm not sure what I want! :rotfl: We are 26 and 27 by the way.

We haven't discussed moving and it's not something we want to do anytime soon (planning on staying where we are about 10 years I reckon), but at the moment and at the age we are (I appreciate you have kids, so may be diff), I would love if our mortgage was smaller and more manageable rather than stretching ourselves. Unfortunately, because we live just outside London, our "not final home" still cost us in the region of what you are looking for your "final home."

Only you and your hubbie can decide what you want, but if it was me, I'd sit tight until it wasn't stretching the finances. What if you decide to have more kids or can't work for any reason?