Time to Move or Wait ?
10 October 2001, 12:42 AM
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We went for it just over 2 years ago. Moved from semi (£69000) to detached (£128000). We don't intend to move again while Alex is growing up. House we are now in is approx £170000 (next door but one virtually identical sold 10 days ago). House prices are rising faster than wages.
Yes, yes it remains relevant to the price you get for the one your selling, but it doesn't take agenius tp work out that percentage rises exagerrate the difference over time.
I would strongly advise you to seize the day. Consult Charcol online, see a mortgage/financial adviser and get the best fixed or capped deal to suit you.
I am seeing a guy tonight for this very purpose as our capped mortgage expires in March next year. They reckon that even if you get the redemption penalties swallowed up by the new mortgage, you'll be better off with a new deal. I'll give you the gen tomorrow.
Anyone who can predict what will happen to anything (interest rates included) over the next 2,5 or 10 years will not be working for a living.
Don't put off until tomorrow what you can do today, you will live to regret it.
Oh and make sure that you take out a repayment mortgage, NOT interest only in the current non-inflationary (wages at least) climate you want to be eating away at your capital balance too. If you can though, keep any endowments etc. you already have running for their full term. It'll be worth it in the long term.
Yes, yes it remains relevant to the price you get for the one your selling, but it doesn't take agenius tp work out that percentage rises exagerrate the difference over time.
I would strongly advise you to seize the day. Consult Charcol online, see a mortgage/financial adviser and get the best fixed or capped deal to suit you.
I am seeing a guy tonight for this very purpose as our capped mortgage expires in March next year. They reckon that even if you get the redemption penalties swallowed up by the new mortgage, you'll be better off with a new deal. I'll give you the gen tomorrow.
Anyone who can predict what will happen to anything (interest rates included) over the next 2,5 or 10 years will not be working for a living.
Don't put off until tomorrow what you can do today, you will live to regret it.
Oh and make sure that you take out a repayment mortgage, NOT interest only in the current non-inflationary (wages at least) climate you want to be eating away at your capital balance too. If you can though, keep any endowments etc. you already have running for their full term. It'll be worth it in the long term.
10 October 2001, 12:56 AM
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My personal view (be warned - I'm no expert 
) is that interest rates will stay quite low for the forseeable.... house prices I think will drop, lead by the cheap end of the market which will drag down the top end as well...
) is that interest rates will stay quite low for the forseeable.... house prices I think will drop, lead by the cheap end of the market which will drag down the top end as well...
10 October 2001, 10:10 AM
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Time to consult the ScoobyNet oracle...
Currently I have quite a modest mortgage and both Mine and my partners incomes have risen since we took it out so minds are thoughts are turning to a bigger house. Currently have a semi with paper thin walls and the neigbour is pregnant....
If we mortgage ourselves big style we can afford a house that would probably see us for the forseeable future (10,15 years...) however as eleswhere House prices in Suffolk are still rising strongly. If we wait two years (end of current mortgage deal so no penalty and we're expecting a capital injection - though not gauranteed) House prices may well have risen to the point where we cant afford it..
So....
Do people believe Interest rates will rise/fall/stay the same over the next 2/5/10 years ?
Will house price rises start to tail off over the next two years ?
I personally dont expect to see a crash as such but maybe just a slow-down... ?
*** I understand any Scoobynet posting dont constitute financial advice so no no need for disclaimers
***
Deano
Anyway
Currently I have quite a modest mortgage and both Mine and my partners incomes have risen since we took it out so minds are thoughts are turning to a bigger house. Currently have a semi with paper thin walls and the neigbour is pregnant....
If we mortgage ourselves big style we can afford a house that would probably see us for the forseeable future (10,15 years...) however as eleswhere House prices in Suffolk are still rising strongly. If we wait two years (end of current mortgage deal so no penalty and we're expecting a capital injection - though not gauranteed) House prices may well have risen to the point where we cant afford it..
So....
Do people believe Interest rates will rise/fall/stay the same over the next 2/5/10 years ?
Will house price rises start to tail off over the next two years ?
I personally dont expect to see a crash as such but maybe just a slow-down... ?
*** I understand any Scoobynet posting dont constitute financial advice so no no need for disclaimers
***Deano
Anyway
10 October 2001, 10:26 AM
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mmm... we're in pretty much the same situation. Myself and partners (wife still doesnt sound right...) combined income has almost tripled in the 2 1/2 years since we bought our small two bed flat in wapping. Now we want some space, a garden more garage space, etc
We're going for it, we can get a lumpy profit on our place a very low mortgage and (imo) we'll be in a strong position to put in a low'ish offer on a place. Having followed property for a while now, there are now too many sellers and not enough buyers.
The only worry is whether the prices will come down big time - i think not, but our insurance will be the profit on our current place - we'll go from a 90% mortgage on x to a 75% mortage on Y (where Y is double X)
mortgage insurance and fixed for 5 years will let us sleep at night
jon
We're going for it, we can get a lumpy profit on our place a very low mortgage and (imo) we'll be in a strong position to put in a low'ish offer on a place. Having followed property for a while now, there are now too many sellers and not enough buyers.
The only worry is whether the prices will come down big time - i think not, but our insurance will be the profit on our current place - we'll go from a 90% mortgage on x to a 75% mortage on Y (where Y is double X)
mortgage insurance and fixed for 5 years will let us sleep at night
jon
10 October 2001, 01:58 PM
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Deano,
Get on with your life as you wish to live it. I know too many people that have put their lives on hold while they worry about things that they can't influence anyway.
I don't think rates will rise very much, if at all over the next 12 months or so. Anyone who can predict what rates will be doing in 10 years is probably telling fibs.
House prices might level out a bit in some areas over the next few months - they may even drop a bit, but I don't believe they'll 'fall off a cliff' like they did once before, as the growth rate has been a lot steadier this time round.
Andrew
Get on with your life as you wish to live it. I know too many people that have put their lives on hold while they worry about things that they can't influence anyway.
I don't think rates will rise very much, if at all over the next 12 months or so. Anyone who can predict what rates will be doing in 10 years is probably telling fibs.
House prices might level out a bit in some areas over the next few months - they may even drop a bit, but I don't believe they'll 'fall off a cliff' like they did once before, as the growth rate has been a lot steadier this time round.
Andrew
10 October 2001, 03:44 PM
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Britannia do a 15 year fixed, that helps sleeping at night.
We have just done it, and whilst you wonder what will happen to prices longer term, we really did see our wanted house slipping to the point where we would not have been able to afford it.
We figured its what we want for at least 10 years, so who cares how much we paid ofr it, it got to be worth a hell of a lot more in 10 years time.
robski
We have just done it, and whilst you wonder what will happen to prices longer term, we really did see our wanted house slipping to the point where we would not have been able to afford it.
We figured its what we want for at least 10 years, so who cares how much we paid ofr it, it got to be worth a hell of a lot more in 10 years time.
robski
10 October 2001, 10:50 PM
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Hmmm
Just had the parents round - "Of course in our Day infaltion took care of the payments after a few years" "Young people today want it all instantly" "Whats wrong with the house youve got" Bless'em
But not much use.
I'll go and surf to see the deals available.
Now where did I put my crystal ball....
Just had the parents round - "Of course in our Day infaltion took care of the payments after a few years" "Young people today want it all instantly" "Whats wrong with the house youve got" Bless'em
But not much use.I'll go and surf to see the deals available.
Now where did I put my crystal ball....
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17 October 2001, 11:46 PM
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Deano > here's my two penneth.
The current mega low interest rates are an attempt to keep things bouyant given the economic slow down. If things recover a bit over the next 1-2 years they may well go up again, but they will not go particularly high, and will never go silly (15%) again, reason being Europe - as ties get closer the whole european union must hold a reasonably steady level.
When I chose my last 3 mortgages (in the last 4 years) I chose repayment with cashback option (variable rate). Given the term of the deal (3/5 years etc.) I worked out what interest rates would have to be for me to loose out on the deal. It turned out they'd need to be over 10% for me to loose out (as in effectively paying back the cash back money). Luckily for me rates have pretty much consistantly gone down so I've been well quids in. When moving and getting next mortgage, have paid any redemption costs (part repayment of cashback) from the next mortgage's cashback, with more left over.
With interest rates so low, fixed/capped may not be such an attractive option. As said above, find a decent independant financial advisor (I did) to help tailor everything to your needs/plans and best of luck
I'm currently (since splitting up with ex) in a lucky position where I have a house bigger than my needs so I'll soon be downsizing to gain some equity, part of which I intend to use to get a P1, or the like, which is why I joined this board in the first place
. I am currently pondering when to make the move but it looks like holding out is my best option. As prices go up I should be able to make more on mine, I'll have paid more of the repayment mortgage off, redemption costs will reduce and the price of P1s will go down. That's settled then, I'll give it another 18 months, unless the lure of P1 overcomes my greed
The current mega low interest rates are an attempt to keep things bouyant given the economic slow down. If things recover a bit over the next 1-2 years they may well go up again, but they will not go particularly high, and will never go silly (15%) again, reason being Europe - as ties get closer the whole european union must hold a reasonably steady level.
When I chose my last 3 mortgages (in the last 4 years) I chose repayment with cashback option (variable rate). Given the term of the deal (3/5 years etc.) I worked out what interest rates would have to be for me to loose out on the deal. It turned out they'd need to be over 10% for me to loose out (as in effectively paying back the cash back money). Luckily for me rates have pretty much consistantly gone down so I've been well quids in. When moving and getting next mortgage, have paid any redemption costs (part repayment of cashback) from the next mortgage's cashback, with more left over.
With interest rates so low, fixed/capped may not be such an attractive option. As said above, find a decent independant financial advisor (I did) to help tailor everything to your needs/plans and best of luck
I'm currently (since splitting up with ex) in a lucky position where I have a house bigger than my needs so I'll soon be downsizing to gain some equity, part of which I intend to use to get a P1, or the like, which is why I joined this board in the first place
. I am currently pondering when to make the move but it looks like holding out is my best option. As prices go up I should be able to make more on mine, I'll have paid more of the repayment mortgage off, redemption costs will reduce and the price of P1s will go down. That's settled then, I'll give it another 18 months, unless the lure of P1 overcomes my greed
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