When would be the best time to move?

Snookie12cat

Slithery said:

Snookie12cat said:

Interest rates are not 5% and they may very well never get to that limit for decades. If you can afford the payments at 3%-4% interest then there is minimal risk.

Borrowers have been stress-tested by lenders against a 7% interest rate for over a decade now.

If you're up against your limit then you won't get a mortgage if you can only handle 3%.....

What I meant was they are clearly worrying themselves looking at repayments at 5%. 
It's not realistic for the foreseeable or even in the next decade.. There is something to be said to make sure you don't overextend yourself, but in the scheme of things they are worrying over something that might not happen.

IamWood

Buy a good property in a good area as early as you can afford - this is the best advice given by my father.

Slinky

IMO unless you are going to make investments which carry risk, you cannot outsave the rate of house price increase by just saving money in interest bearing accounts.

md258

Why do you need to move?

I had a 2 bed flat which was great- I loved the location, hassle free nature of repairs, I'd paid off the mortgage etc, the only reason why I moved was because I had a child (now x2) and needed more space. (I do love my house now though).

Don't underestimate the value of a mortgage free flat that gives you flexibility should you meet someone and want to move in/buy with them, lose your job or any number of other scenarios.

On the other hand, if you are certain you want to move, do it now. If it turns out not to be the best time with hindsight, you'll have had a year or 5 being happy in your new property that is worth a lot

redundantmortgage

It's more of a want than a need. Basically it's too small. The original plan was to do a 2 bed flat next and then a house but given the costs/stress of moving we decided to stay here longer, get the mortgage down as quickly as possible and go straight to the house. I've already met someone I've moved in/bought with, I was already married when the whole thing started.

The losing the job thing though is probably the thing making me most afraid to move. I lost my job last year and it took ages to find work again. 

What I'm struggling to get my head round is the financial costs of staying here longer.

Previously the property price went up £80k and rent cost £55k in that period meaning the loss was £135k minus the additional interest I would have paid had I bought straight away.

Now I don't have rent to pay and hopefully by July no mortgage to pay either. If said property I'm looking to buy goes up by £80k then so in theory should my property given I'll be looking in the same area. Where would I be making a loss?

RelievedSheff

You are seriously over thinking this!

Snookie12cat

redundantmortgage said:

It's more of a want than a need. Basically it's too small. The original plan was to do a 2 bed flat next and then a house but given the costs/stress of moving we decided to stay here longer, get the mortgage down as quickly as possible and go straight to the house. I've already met someone I've moved in/bought with, I was already married when the whole thing started.

The losing the job thing though is probably the thing making me most afraid to move. I lost my job last year and it took ages to find work again. 

What I'm struggling to get my head round is the financial costs of staying here longer.

Previously the property price went up £80k and rent cost £55k in that period meaning the loss was £135k minus the additional interest I would have paid had I bought straight away.

Now I don't have rent to pay and hopefully by July no mortgage to pay either. If said property I'm looking to buy goes up by £80k then so in theory should my property given I'll be looking in the same area. Where would I be making a loss?

You need to stop. Your flat will never go up the same as a house... It is worth less so even if they went up the same percentage, in real terms you will lose out. 

You seem to paralyzed by fear. Work on this or you will never be able to make any major decisions in your life.

A house is somewhere to live, not an investment. If you make money from it all good but you are not buying it to make money. 

Edi81

Think of the interest as rent - you have to pay rent if you don’t own and it’s no different in that respect. 

You are overthinking this all. 

IamWood

> What I'm struggling to get my head round is the financial costs of staying here longer.

It is not complicated at all. If you need a bigger house, move when you can afford it. -- so simple.

You cannot predict the future and you cannot time the market. If you buy in dip, count your blessings, otherwise, it's a wise move, after all.

Good luck!

redundantmortgage

Are we saying that in theory if a house costing twice as much as my flat goes up by £80k then my flat goes up by £40k which leads to a £40k loss?

Thinking about it between the prices did go up almost £40k between 2013 and 2014 so that can't be ruled out again and I won't be able to save more than £40k a year even without a mortgage to pay.

Maybe I just need to take the plunge. I've done nothing but worry about being able to get to the end of my mortgage for the last 10 years (yes even before I got a mortgage) it's probably not possible to worry any more than I do now.