scoobyjimbo

Guys

Just changed jobs and looking to move nearer the new job - problem is i am going to have to move from an average prices area to a high price area. Now i have a good amount of equatity in my current house and have some savings to add to the deal, but I am going to have to extend my morgage to a much higher level that i would want to ideally to get the sort of house that we would both be happy with. Now i can easily afford the payments and even the payments should the interest rates rise (although i am going to get a 5 years fixed rate), upto 10% - so i am happy with this. Its just taking that step really, effectivelty I will be close to work and will save myself around £550 a month in tarvel costs alone so i will me putting around half of this extra into a mortgage.

What are peoples thoughts, i am just a bit jittery about increasing my mortagege to such a high level in the current climate which seems to be going a bit pear shaped.

Any opinions much apreciated.

James

Drunken Bungle Whore

<Gets out the pop corn, opens a cold beer and sits back to watch the usual out pourings of doom and gloom>

If you're buying 'property' as an investment then it's a risk and "the value of your investment may rise as well as fall" - but if you're buying a home to live in for the next 20 years, then that's different. The second option is less of a financial risk as, even if the property market does take a tumble it would take a pessimist worse than the doom mongers on here to suggest it would be worth less at the end of 20 years.....

Rabid

If you can afford the repayments just buy yourself a place to live and try not to think of it as an investment.

The Snug Rhino

"Now i can easily afford the payments and even the payments should the interest rates rise (although i am going to get a 5 years fixed rate), upto 10% - so i am happy with this."

says it all.....MOVE!

lightning101

Remember your wages should have increased each year for 5 years as well as 5 years worth of a percentage of the new capital being paid. It may end up being another 5 years of equity, and lets be honest a bank offers 4-5 % interest less tax, your house is tax free and you get to live in it and add to the value yourself.

wilko44

You will get a helluva a lot more of a return by spending £275 extra per month on your mortgage than you will by spending £550 per month commuting.
Do it!

speedking

a) spend money on a house that will be worth more when you come to sell it while getting effectively a £10k pay rise.
b) spend money on petrol that will be worth zero within a few days.

Factor in the time you don't have to spend travelling. You decide

scoobyjimbo

thanks guys..J