Is now a bad time to move house

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Inchy
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Is now a bad time to move house

Post by Inchy » Thu May 12, 2022 12:16 pm

Wanting advise from those financially minded.


I’m thinking about moving house. I live in east Leeds in a nice(ish) area. Primary school where my son goes (year 1) is good, secondary school a bit naff. My daughter starts school sept 2023.

We were planning on moving before next December so we knew which school to apply for for my daughter.

I’ve had my house valued and made a decent amount of money since we bought it 6 years ago. This is our first house and since then I’ve been able to save a fair bit of money and I can afford to move to a nicer area in north Leeds which will make visiting Burnley a lot quicker.

I’ve got about 17 years left on my current mortgage and I’m order to move I’d have to increase that up to 30, borrow about 330k and use my current equity and savings to buy.

My concern is what’s going on with the economy, cost of living, interest rates. My fix term mortgage is about to end this summer but obviously as I’m looking to move I haven’t fixed in again. My concern is if I move I’m going to be borrowing a lot a money at a bad time. If I stay where I am I could use the savings to pay off some of my current mortage.

The benefit of moving now is to get to a better area, nearer home, and get my daughter in school without her having to move. I’m wondering if it’s worth just staying put and fixing in for 3 years and reassess the market then?

Anyone got any advise?

claret2018
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Re: Is now a bad time to move house

Post by claret2018 » Thu May 12, 2022 12:51 pm

I’m in a similar position. House prices aren’t going to crash- they will likely stabilise soon so they stop going up by huge amounts each year, but there’s still going to be demand for bigger houses in nice areas.

I think it’s probably a good time to move before internet rates potentially go crazy in the next few years.

StuffyClaret
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Re: Is now a bad time to move house

Post by StuffyClaret » Thu May 12, 2022 12:54 pm

If you decide to stay and fix for three years, you should be able to 'port' your existing deal to the new property so that you can continue to benefit from it. Any additional borrowing will be at the rates available when you move.

Alternatively if you move now, there are plenty of five year fixed deals available at, or around 3%

Rowls
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Re: Is now a bad time to move house

Post by Rowls » Thu May 12, 2022 12:55 pm

Beware of anybody who offers you a definitive answer here, Inchy.

I'd imagine you're aged about 35 so you can afford to do this in terms of your age. We're set for a period of inflation and that's almost certainly going to push interest rates up but that has to be put into the context that they have been at all time lows for around a decade now.

To put it another way, interest rates were a real concern for your parent's generation but they've been (relatively) negligible for a long time now.

The current inflation is being driven by the closure of the world economy that we undertook because of covid and it's been exacerbated by the war in Russia. The knock on effect of this could last for years but the way out of it is long and slow and involves governments having economic and fiscal discipline. I'm not sure how this will pan out in the coming years. I'd wager that inflation will be around 5-6% for four or five years and interest rates will rise to 3-4%. What happens after that will depend on the government in situ. I'm not confident on that front but those kind of rates should be managable given what you've said.

If you fix and re-assess the market in a few years it will have moved on but this will be matched by how the market has affected your current house value.

There's a good time to buy a house and that's when prices are low. However this is only really useful to millionaires who can buy houses wily-nily. You're not buying a house; you're moving houses with equity which makes it a bit of a nul equation. You don't gain anything much by waiting or by doing it quickly.

So my advice is that the idea of waiting and watching the market isn't worth it. It would only be of benefit if your house rose in value but houses where you'd like to move to fell in value. This just isn't likely, it's likely they'll rise/fall at similar rates.

The main factor you should consider are:

Can I afford my new mortgage, even if interest rates hit, say 8-10%?

If yes, ask yourself this question:

Do I really want to move?

If it's yes to those two then go ahead.

I hope there's not a lot of 'advice' in what I've said. I hope it's what you already know.

The only piece of advice I'd offer is IF you can afford to lower the duration of the re-mortgage from 30 to 25 years (or less) then do so. The real cost of mortgages is in their duration. If you can afford to do that, then do so. You'll need to be able to pay a bit more in the short term but you will save in the long term and be better off when the kids reach fledgling age.

All the best & UTC!
Rowls

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Re: Is now a bad time to move house

Post by Lancasterclaret » Thu May 12, 2022 1:10 pm

If you are making a decent amount on your current house and its within your budget, added to the school issue, then I'd say go for it

tarkys_ears
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Re: Is now a bad time to move house

Post by tarkys_ears » Thu May 12, 2022 1:18 pm

I duno

I'm not in the market but looking every day and would be prepared to move quickly

If the current market is anything to go by, there's certainly a lot of people who haven't been put off, that's for sure. Most houses by me are gone within a day or two

IanMcL
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Re: Is now a bad time to move house

Post by IanMcL » Thu May 12, 2022 1:46 pm

I think people will be more hesitant to upside, owing to CofL but happy to downsize.

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Re: Is now a bad time to move house

Post by pompeyclaret » Thu May 12, 2022 1:51 pm

On the length of mortgage front, I'd keep it as long as possible. Nearly all mortgages let you over-pay by 10% of the outstanding balance, which should be much more than the difference of 30 - 25 years. Then if rates go up, you still have some flexibility. Probably increases your chances of passing affordability checks and opening more options for you.

I'd also check any mortgage small print, as not all deals are portable to a different house, but certainly an option to consider.

Complete disclaimer as per others that not an expert and can't foresee what will happen with house prices or interest rates.

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Re: Is now a bad time to move house

Post by Claret Till I Die » Thu May 12, 2022 1:56 pm

Stay and get the best out of your new manhole cover.
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Quickenthetempo
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Re: Is now a bad time to move house

Post by Quickenthetempo » Thu May 12, 2022 2:28 pm

Financially no

Taking on a bigger and longer mortgage when interest rates are going to go higher won't help that.

You will get a good price and sell quickly no doubt but won't see any benefits until further down the line.

If you can afford to pay your savings into your mortgage it's a no brainer. Check your mortgage what you pay back but I would think for every pound you pay off early it will stop you paying £2.50.
You pay more interest in the early years so the banks get that back first.

Zlatan
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Re: Is now a bad time to move house

Post by Zlatan » Thu May 12, 2022 2:48 pm

Inchy wrote:
Thu May 12, 2022 12:16 pm
Wanting advise from those financially minded.


I’m thinking about moving house. I live in east Leeds in a nice(ish) area.
Move - its Leeds FFS... ;)

On a more serious note though, I read through Rowls post and the advice is sound.

I'm sharing a similar thought process although just thinking about whether to re-mortgage now instead of waiting till next October when our current (very good) fixed rate ends. I have concerns about interest rates rocketing (not that they will) I cant see them remaining low for much longer.

I dont know how high they will rise, but they will have to rise to fight inflation. For me its weighing up the security of a 10 year fixed rate (Lloyds offering 2.29% on 10 year fixed) against any potential rises bearing in mind I'd need to justify an early redemption charge of approx £8000 on my current approx £200k mortgage that I currently have (16 years left)

Bottom line is, if it is your only property and you want to move and can afford it, then move. I'd also recommend seeing at least 2 independent financial advisors for different views, dont just go with or believe the first.

Inchy
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Re: Is now a bad time to move house

Post by Inchy » Thu May 12, 2022 2:55 pm

Thanks for the advise everyone I really do appreciate it. Il give some figures as although it’s not the done thing in our culture it will probably help out it into context.


My current house has been valued at 330 to 335k. I paid 220k 6 years ago. I have 50k in savings. I put 50k down as a deposit on my current house. I have a mortgage in principle for 340k (although that’s a couple of months old now), so il looking at spending between 450 and 550k on a new house. Leeds is extremely expensive at present and north Leeds is even more so.

I work as a charge nurse as many on here know. I’m a band 7 and my wife is a band 6. I also get unsocial uplift and have access to overtime whenever I want it (although I never do). My job is very secure

I do really want to move to north Leeds to be nearly Burnley and nearer my wives parents. Schools are better and the areas are generally much nicer. My current mortgage is up for renewal this summer so I could lump 30k of my savings into that without any fines and renew on a fix rate. I’m thinking I’m best doing that, fixing in for 3 years, but still look to move. At present there isn’t much about so although il quickly find a buyer for my house il struggle to find one. I suppose that will give me piece of mind that I won’t be going onto a variable rate whilst I’m looking about for a new house

RMutt
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Re: Is now a bad time to move house

Post by RMutt » Thu May 12, 2022 2:58 pm

Claret Till I Die wrote:
Thu May 12, 2022 1:56 pm
Stay and get the best out of your new manhole cover.
Although, it does make a great selling point.

KRBFC
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Re: Is now a bad time to move house

Post by KRBFC » Thu May 12, 2022 3:02 pm

Sell your house and buy 11 Michael Duffs
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Inchy
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Re: Is now a bad time to move house

Post by Inchy » Thu May 12, 2022 3:08 pm

Zlatan wrote:
Thu May 12, 2022 2:48 pm
Move - its Leeds FFS... ;)

On a more serious note though, I read through Rowls post and the advice is sound.

I'm sharing a similar thought process although just thinking about whether to re-mortgage now instead of waiting till next October when our current (very good) fixed rate ends. I have concerns about interest rates rocketing (not that they will) I cant see them remaining low for much longer.

I dont know how high they will rise, but they will have to rise to fight inflation. For me its weighing up the security of a 10 year fixed rate (Lloyds offering 2.29% on 10 year fixed) against any potential rises bearing in mind I'd need to justify an early redemption charge of approx £8000 on my current approx £200k mortgage that I currently have (16 years left)

Bottom line is, if it is your only property and you want to move and can afford it, then move. I'd also recommend seeing at least 2 independent financial advisors for different views, dont just go with or believe the first.
Cheers for the advise, and to Rowls, it’s very helpful.


I am looking at getting a financial advisor, I just wanted to get some advise (my father in law, my uncle, and UTC) before I spend money on that to make sure I wasn’t being daft for even asking the question
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Boss Hogg
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Re: Is now a bad time to move house

Post by Boss Hogg » Thu May 12, 2022 3:39 pm

House prices I expect will continue to rise but at a slower rate. There’s too many chasing too few. You have a secure job which is the crux of it. Too many stretch themselves looking at the maximum they can afford. I on the other hand think what if. I would have thought Covid and the cost of living would make others think the same. If it improves your lifestyle go for it.

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Re: Is now a bad time to move house

Post by Quickenthetempo » Thu May 12, 2022 4:16 pm

50k in savings.

You can tell someone doesn’t follow the Clarets all around the country.😁

Inchy
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Re: Is now a bad time to move house

Post by Inchy » Thu May 12, 2022 4:35 pm

Quickenthetempo wrote:
Thu May 12, 2022 4:16 pm
50k in savings.

You can tell someone doesn’t follow the Clarets all around the country.😁


A fair chunk of that was inherited when my wives nan died. I’m not that good at saving

FeedTheArf
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Re: Is now a bad time to move house

Post by FeedTheArf » Thu May 12, 2022 4:49 pm

Inchy wrote:
Thu May 12, 2022 2:55 pm
Thanks for the advise everyone I really do appreciate it. Il give some figures as although it’s not the done thing in our culture it will probably help out it into context.


My current house has been valued at 330 to 335k. I paid 220k 6 years ago. I have 50k in savings. I put 50k down as a deposit on my current house. I have a mortgage in principle for 340k (although that’s a couple of months old now), so il looking at spending between 450 and 550k on a new house. Leeds is extremely expensive at present and north Leeds is even more so.

I work as a charge nurse as many on here know. I’m a band 7 and my wife is a band 6. I also get unsocial uplift and have access to overtime whenever I want it (although I never do). My job is very secure

I do really want to move to north Leeds to be nearly Burnley and nearer my wives parents. Schools are better and the areas are generally much nicer. My current mortgage is up for renewal this summer so I could lump 30k of my savings into that without any fines and renew on a fix rate. I’m thinking I’m best doing that, fixing in for 3 years, but still look to move. At present there isn’t much about so although il quickly find a buyer for my house il struggle to find one. I suppose that will give me piece of mind that I won’t be going onto a variable rate whilst I’m looking about for a new house
Alternatively, move back to Burnley, get what you'd pay 550k for in Leeds for around 300k here, with the equity you've got plus the increase in your current home you could be mortgage free in 10 years!

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Re: Is now a bad time to move house

Post by buzzclarets79 » Thu May 12, 2022 4:52 pm

My advice is affordability.

With the way things are going, just remember to take into account the cost of moving house. Is it a bigger house, will it cost more to heat, pay more in council tax etc, all the costs that you don't always think about.

Its also easy to say I've been approved for X amount, can you really afford to pay that back. We got approved for 450k last September but the repayments along with the higher household bills meant had we taken that 450k we wouldn't be able to live, our lifestyle would of changed dramatically.

It can be an exciting if not stressful time moving house so good luck with whatever you decide to do

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Re: Is now a bad time to move house

Post by Billy Balfour » Thu May 12, 2022 5:33 pm

The best time to move house is when you're not that arsed about moving house - it removes most of the stress.

Inchy
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Re: Is now a bad time to move house

Post by Inchy » Thu May 12, 2022 5:37 pm

buzzclarets79 wrote:
Thu May 12, 2022 4:52 pm
My advice is affordability.

With the way things are going, just remember to take into account the cost of moving house. Is it a bigger house, will it cost more to heat, pay more in council tax etc, all the costs that you don't always think about.

Its also easy to say I've been approved for X amount, can you really afford to pay that back. We got approved for 450k last September but the repayments along with the higher household bills meant had we taken that 450k we wouldn't be able to live, our lifestyle would of changed dramatically.

It can be an exciting if not stressful time moving house so good luck with whatever you decide to do

I would love to move back to Burnley. Most of my mates are there (nursing doesn’t supply many lad mates), it’s cheaper, I know the better areas, I could get to the turf more often, my dad and brother are there, the countryside surrounding is idea for fell running. But my jobs here and it’s pretty specialist and often like dead man’s shoes at other hospitals. Also my wife’s family and friends are here and I feel she would miss not being near them more than I do not being near mine

Paul Waine
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Re: Is now a bad time to move house

Post by Paul Waine » Thu May 12, 2022 6:11 pm

Inchy wrote:
Thu May 12, 2022 5:37 pm
I would love to move back to Burnley. Most of my mates are there (nursing doesn’t supply many lad mates), it’s cheaper, I know the better areas, I could get to the turf more often, my dad and brother are there, the countryside surrounding is idea for fell running. But my jobs here and it’s pretty specialist and often like dead man’s shoes at other hospitals. Also my wife’s family and friends are here and I feel she would miss not being near them more than I do not being near mine
Hi Inchy, I've read thru this thread. Can I add a few thoughts from someone who's a couple of decades older.

1) Live in a house where you and your wife will be happy - and happiness will often be about how your family is developing, children, schools, parents etc;
2) Moving house is expensive, so, if you need to move to achieve (1) then stretch yourself financially as much as you think you can do;
3) The country (and the world) is experiencing inflation, yes, it means higher interest rates (= higher mortgage expense), but inflation also means that the "real" value of debt reduces, even if wage increases don't keep pace with inflation every year;
4) house prices can fall, they don't always rise, but falling prices is generally short term, get "location, location, location" right and medium and long term if you bought before a fall it will be a little dip and soon be forgotten;
5) Be prepared for economies, if necessary, to get through your personal cost-of-living crunch. Always a personal decision, but we always cut holidays immediately after the expense of moving house and taking on a bigger mortgage. And, a lot of the necessary work after moving to a new house - when I was younger - became d-i-y projects.

Good luck, whatever you decide.

FCBurnley
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Re: Is now a bad time to move house

Post by FCBurnley » Thu May 12, 2022 6:27 pm

Here are my 3 golden rules in life

1. Love your job
2 Love where you live ( house and location)
3. Love who you live with

Tick those 3 boxes and you will be a happy man
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