Buying A New Home

[stevetubbyturbo]

Me and Rachel are looking to by a bigger house as we have outgrown our 2bed house and have found a large 3bed with extension house that would suit our needs perfectly.

But ive worked out the mortage we would need and it would work out at £625 a month on the extra 100K we would need which i thought was a big mortage but after talking to some people that is a below average what some people are paying does that sound about right?

[Demonic Angel]

Well the mortgage on our house was just over £600 a month for a £111,000 mortgage....

I dont live there anymore mind, but thats cheap apparently! So yeah, below average I'd reckon

[earpl]

i pay £250 a month on 50k

[Demonic Angel]

i pay £250 a month on 50k

Do you live in a cardboard box mate? You couldnt get a pebble here for 50k!

[stevetubbyturbo]

The house were looking at it £180'000 but its huge with lots of land, we should make £80'000 from the sale of our current house which we only pay £250 a month at the moment but theres not enough room to swing a hamster let alone a cat.

[earpl]

no i bought a house the size of a shoe box in the middle of the peak park, it wants 20 k spending on it, and the one next door went for 140k 3 month ago. i think thats a pretty good move myself how many others on here got a morgage at 19 years old?

[stevetubbyturbo]

no i bought a house the size of a shoe box in the middle of the peak park, it wants 20 k spending on it, and the one next door went for 140k 3 month ago. i think thats a pretty good move myself how many others on here got a morgage at 19 years old?

Nice one Chris

I got onto the property ladder young as well where a lot of my friends didnt and they rented and most of them are still renting as they cant afford to buy now at the current house prices.

[earpl]

its the best way mate, i studied hard to become an engineer and its paid off, even though i have know intention of living in the house its a great money maker :)

[PaulT]

Maybe something to consider about borrowing in general at the moment is that interest rates seem to be on the up, both here and also in the US.

Some analysts are suggesting that we are basically at the end of a relatively prosperous period, as far as I can make out, and that the rise in interest rates could be the start of higher inflation and eventually recession.

People in the IT industry seem to be a bit pessimistic about 2008 onwards too. Obviously it's impossible to say for sure, but there seems to be a split on whether the economy is headed for a soft landing or going to have a more serious downturn.

I know I ought to be getting my own house and a mortgage, but just think houses are overvalued at the moment, at least where I live, and don't want to be lumbered with an expensive debt if a house price fall is relatively just around the corner.

Paul.

[sotal]

Maybe something to consider about borrowing in general at the moment is that interest rates seem to be on the up, both here and also in the US.

Some analysts are suggesting that we are basically at the end of a relatively prosperous period, as far as I can make out, and that the rise in interest rates could be the start of higher inflation and eventually recession.

People in the IT industry seem to be a bit pessimistic about 2008 onwards too. Obviously it's impossible to say for sure, but there seems to be a split on whether the economy is headed for a soft landing or going to have a more serious downturn.

I know I ought to be getting my own house and a mortgage, but just think houses are overvalued at the moment, at least where I live, and don't want to be lumbered with an expensive debt if a house price fall is relatively just around the corner.

Paul.

I got my first house 2 years ago for £72k which is now worth about £115k and wouldn't look back. The way I look at it is if house prices drop 50% then yes I might lose a little bit on my first house (approx 15k) but my next house will only be £50k more rather than £100k more. So I would actually be £35k better off.

Obviosuly the only issue would be the increased amount of interest that would need to be paid off on the next house which would approx level itself back out again

[Ken N]

Steve, it depends on the term of the mortgage (and whether it is interest only or not) and the interest rate.

The mortgage market is very competitive and there are a number of options open to you. You can opt for a fixed rate mortgage if you are worryied about interest rates going up. Alternatively, you can opt for a mortgage that is discounted for a fixed period. You need to consider if there are any redemption penalties involved for early settlement (i.e. if you move to another lender) and if so, for how long.

Examples of some morgage deals can be found on independent websites such as http://www.moneyfacts.co.uk/

Monthly mortgage repayments can be calculated from

http://money.guardian.co.uk/calculator/for...,603156,00.html

It is worth shopping around and the sad reality is that you will probably be better off moving from your current lender. It is a real headache working out the best deal, but the savings can be significant.

Good luck.