Is now the right time to move?

Rian

Just about to look at getting my 2 bed flat on the market which should fetch around 190k and looking at 3 bed houses at around 300k (hopefully will pay around 290ish)

What is your thought on:

1 - the mortgage interest rate? I'm fixed in so I'll be porting my own mortgage.

2 - house prices? Will they reduce by the 8%ish I keep reading about potentially putting people into negative equity.

3 - would you move in today's world or would you hold on a while?

mi-key

1, If you are porting then you have nothing to worry about

2, they may do in some areas. Negative equity is only a problem if you can't make the monthly payments. I assume you have equity from your flat you will be using as a deposit on the new house?, so it shouldn't be an issue for you

3. The best time to move is when you find a house you want, and can afford it. I don't see any real benefit of holding on at the moment. The house you are buying may come down a bit, but then your flat may drop in price by more than the house drops percentage wise, so any small saving ( if that ) will be cancelled out. Houses in general hold their prices better than flats, so you could be better off buying sooner rather than later.

jonnydeppiwish!

Is it ever the best time to move? You need to look at what’s best for you in the long term, not just 2-5years down the line

Rian

mi-key said:

1, If you are porting then you have nothing to worry about

2, they may do in some areas. Negative equity is only a problem if you can't make the monthly payments. I assume you have equity from your flat you will be using as a deposit on the new house?, so it shouldn't be an issue for you

3. The best time to move is when you find a house you want, and can afford it. I don't see any real benefit of holding on at the moment. The house you are buying may come down a bit, but then your flat may drop in price by more than the house drops percentage wise, so any small saving ( if that ) will be cancelled out. Houses in general hold their prices better than flats, so you could be better off buying sooner rather than later.

Thank you, sound answers

RelievedSheff

Is there ever a right or wrong time?

Aberdeenangarse

Yes, house prices are dropping, but you’re buying a home, not an investment. So long as you’ve budgeted prudently you’ll be fine.

EssexHebridean

Make sure your budget is resilient allowing for your mortgage payments.
Work out contingency budgets assuming mortgage rate increases to 6% and even 8% “just in case” - be sure you can still cover the payments at the price point you are looking at.
Include savings in your budget - start to build an emergency fund if you don’t already have one - this cushions you from any expensive issues you may unexpectedly encounter.
Start overpaying your mortgage immediately if you’re not already doing so - even if only by £10 per month if that is all you can afford in the first instance. The sooner you start with overpayments, the more impact they have in the longer term. 

The more contingency plans you put in place in case they are needed, the more under control things will feel - there is a lot of reassurance for example in working out exactly how “little” money you actually need to live for a month, and even a year. 

Finally I’d say - stretch yourself a little by all means, but always make sure you can still save something each month. 

MikeJXE

Regardless of what the market is doing 

The right time to move is when you don't want to stay where you are

EssexHebridean

MikeJXE said:

Regardless of what the market is doing 

The right time to move is when you don't want to stay where you are

…and when financially, you are in a place where you have the luxury of a choice on the matter. 

Rian

EssexHebridean said:

Make sure your budget is resilient allowing for your mortgage payments.
Work out contingency budgets assuming mortgage rate increases to 6% and even 8% “just in case” - be sure you can still cover the payments at the price point you are looking at.
Include savings in your budget - start to build an emergency fund if you don’t already have one - this cushions you from any expensive issues you may unexpectedly encounter.
Start overpaying your mortgage immediately if you’re not already doing so - even if only by £10 per month if that is all you can afford in the first instance. The sooner you start with overpayments, the more impact they have in the longer term. 

The more contingency plans you put in place in case they are needed, the more under control things will feel - there is a lot of reassurance for example in working out exactly how “little” money you actually need to live for a month, and even a year. 

Finally I’d say - stretch yourself a little by all means, but always make sure you can still save something each month. 

Good advice. Just wish I hadn't overpaid my mortgage over the last two years (about £20k) as now ill have to borrow it at a higher interest rate when I port my mortgage. But overpaying is the best thing to do hands down 

ReadingTim

There's always a reason not to.  It just depends on how happy you are with your current situation.