First Time Buyer - To Stretch or not to Stretch?

EssexHebridean

Whatever you decide, do the maths now around potential interest rates rises too. if rates increase to around the 7% mark, then assuming your personal financial positions are still the same would you still be able to afford the payments? How about 9%? Extremely unlikely these days I suspect, but I would also do the sums based on higher levels than that as well - just in case. Buying your "dream home" and then having to lose it down the line because of being unable to meet the repayments would be heartbreaking. Remember, you are not just looking at where things are "right now" but also where they will be when you subsequently come to take a new mortgage deal - which may be in 2, 5 or 10 years time. 

Disregard the inheritance unless it is literally just awaiting probate going through, but especially if the person concerned has not yet died. All sorts of things can happen to change someone's financial position ahead of their death, and even without that possibility, they can always imply change their minds about how their will is written and change it - and while challenges are possible, they are also legally extremely expensive! 

DrSpendingLittle's post above makes some excellent points. 

Herzlos

You'll pay a fortune just to move - stamp duty, solicitors, estate agent fees (if selling), logistics, time of work etc.

You're likely better in the long run stretching a bit and moving once, rather than settling and moving again.

So I'd go for the house you really like and can see being a forever home.

Schwarzwald

never make financial decision in the present on the basis of potentialy future payouts where there is a risk in amount and timing ... reminds me of certain WeWork executives that bought big houses ahead of the intended IPO and on the basis of large payouts, only to face the IPO not completing after all ... dont put yourself in such position, it is not a smart move.