Mortgage prices

gadget88

So I looked at upsizing in February but monthly rates have gone up by £60. Noticed a lack of 3 bed houses market on market. The lack of supply of houses has seen similar 3 beds £20k over usual asking price. I’m still keen to move but find the £60 tight margins could be a days shipping at Asda. Me and my partner also recently reduced hours so I’m juggling already higher food prices lower hours. I’m sure I could move due to enough savings and equity but is anyone else here put off or delaying moving and finding that £60 rise probably more for others a bit much? At current rates I would struggle to remortgage in my current house for any less than I had 3 years ago as prices are high.

ACG

I did a mortgage for someone last year, their offer expired at the end of march and the extension request was refused (the customer had picked up some late payments).

We were able to find him a new deal which was about £20 a month more but it was on a variable rate rather than fixed.

Appreciate the idea of a variable rate in the current climate is daunting, but rates on mortgages are rising because the cost of getting the money in is rising. Its not down to central banks raising rates. No guarantees it will not go up obviously, but we worked out that there would need to be 2-3 rate rises (assuming 0.25% increases) before he would be at the same point as a fixed rate mortgage.

But ultimately if the time is not right for you, the time is not right. Chances are food prices are only going to go up further.

RelievedSheff

Only you can make the choice whether or not now is the right time to move.

We took the plunge and moved to a bigger house with all the associated bigger costs and expenses but decided we can afford it if we tighten our belts a little.

Not ideal with rates going up but hopefully when we come to remortgage in 5 years time rates will be a touch lower.

For Us the extra space is worth the extra cost.

kingstreet

Presumably, you have a property to sell and then have to find somewhere new? It's possible by then rates, which are currently falling, will have settled at pre-Iran levels. As ACG said, pick an ERC-free tracker you can jump out of without cost.

You'll then have the period between application and completion to benefit from rate reductions and if you complete on the tracker, cheaper fixed rate options might still be possible after you move.