fatscoobfella1

iTrader: (1)

We all know that the house market is up and down,as well as mortgages etc etc..


SO..we own our house..No mortgage,and we have had a decent offer for our house. We didnt have to go through an estate agent,as we was approached by a fiends friend.
We have also approached other friends in the village about buying there house as there moving to Canada..

So... we thinking of getting an approx £80k mortgage to buy the new house..

So,taking into account that we owe nothing ATM,is it wise to be taking on an 80k mortgage that will take us till our retirement to pay off.??

The house were thinking of buying is at a very competetive price,so on the face of it,its a good deal..

But im super cautious..

Whats your thoughts guys??

SiPie

Never trust a friend of a fiend

jjones

with the interest added, over 20 years at 6% (repayment) the cost will be £135k if you don't overpay.

is the new place really worth that much to you? mortgage free against having to find £550+ a month?

fatscoobfella1

iTrader: (1)

Nice one Si... Freudian slip eh!!!

JJ.. That is the dilemna...We have taken advice on the morgage amount and is approx £520..Which is still a fair amount considering we pay nothing at the moment.

The only thing is,that at 39,i dont have too long to get into a 25yr term.. So a bigger house may get away from us if we dont jump now.

jjones

well in the current climate of rising redundancy and falling prices, i would be tempted to wait a while, the cost to change price will get smaller as the prices decline and if you were to lose your job in the impending recession at least at the moment you have a secure roof over your head.

Gordo

sell and rent? market is heading south, first years of a std repayment mortgage are interest only so it's not dead money renting. you could end up with a bigger house for the same (or lower) outlay, having locked in your sale now.

I wouldn't worry about the mortgage - 39 is young (I'm 37 and don't feel old yet!) - rising salaries will mean an £80k mortgage is buttons in 20 years' time. Can't remember the exact stat but mortgages on average only last 6-7 years anyway.

Good luck - I appareciate any decision to move house is a big decision.

Gordo

David Lock

There will me many reading this who would give their eye teeth to own a house without a mortgage commitment.

Only you can say whether £500 a month (which might increase) is an easily manageable amount and how secure your job is. But that is six grand a year which gets you a pretty good holiday

And buying and selling is probably going to cost you most of a year's salary because of legal costs and taxes, let alone the hassle of moving.

Again only you know how much you want to move. If you're basically unhappy with your current gaffe then why prolong the misery? I would not sell and rent.

I'd stay put unless you have a special reason to move. dl

fatscoobfella1

iTrader: (1)

interesting points of view..

We love where we live,in fact the "other" house is only 100yds up the road ..

We are going for an official viewing of the house tommorow..
My feelings are that it will have to absolutely blow us away,or were going to stay put..
It has got 2 excellent stone outbuildings,that have power,light and heating in.These would be ideal for rebuilding classic british bikes(a little dream business of mine!!)....

Im sure if we have had a good offer now,we will get them again if this deal doesnt happen.

Oh..FWIW,i aint gonna rent..

Jay m A

iTrader: (2)

Do you need a bigger house?

Is the other house £80k bigger? As in, could you invest in your current home to make it what you want?

You could have one hell of a workshop for £20k, if you have the land to build on!

zs_phil

iTrader: (1)

is it possible to extend your property as it would be cheaper to do that and still be in the house that you know and love

just a thought



beaten to it ^^^^

fatscoobfella1

iTrader: (1)

Our house is very restricted in what we can do,a very small extension is possible.
But we are in the peak district national park,so they frown upon most new buildings really.
Outbuildings that have previously been cowsheds etc etc dont seem a prob..

Suppose 6 o clock tonight will tell

al4x1

I'll buck the trend and say if you have a decent offer on yours and are getting the other house cheap then you are in a win win situation. You can upgrade for relatively little and if the new house has more potential and will give you somewhere you want to stay then the extra money is well worth it.

Obviously the crucial things are that your house does sell and for the right amount until the day of reckoning you can never guarantee it. As for looking after an 80K mortgage only you know if you can afford it or if it is worth it but assuming you can cut the term down to as short as you can and you'll save a lot on the interest. You're in a great area by the sounds of things so I'm assuming you'll be better off than most in the house price crash. Fundamentally though if you are willing to sit still then value is fairly immaterial but you'll have upgraded to a bigger house with more potential for a relatively small cost so when prices rise odds are you'll gain more.

But hey I'm an optimist with a 10x multiple mortgage but with a bit of graft should have gained 50% equity in 3 years so its not all bad and want to stay put so drops in value at the moment are pretty immaterial