Hello,
I am looking for some valuable advice re buying a smaller family home whilst keeping original house. This is our situation.
Last year we had to move for work and we are renting out our family home. Its worth 250-300K with a tracker mortgage of approx 72K left with 6 yrs approx to go. Current rent is 800 pm, we make up shortfall of 155 pm. We are renting a smaller property here for 750pm (total outgoings of rent + shortfall of mortgage = 905 pm).
We are keen to put down roots here as we will not be moving back as kids are established in secondary school now.
We have a lump sum of approx 140k to put towards the price of another house here but we are not sure what is the best thing to do. Bank has said if we clear original mortgage we get mortgage at higher variable rate of 160k but we really don't want to take out a big mortgage at this stage of our lives.
We look on the first property as our nest egg and hopefully in 5-6 years time when kids start college (1 son), we could then sell and release equity and build up our savings again with this.
We would need an extra 50-60k to buy house we are looking at but we would not need a loan, family member has agreed to loan us this and we pay it back, so interest free loan it would be.
I know we are in a very enviable position but we spent 3 years of being out of work and we worked hard to get ourselves out of it and sacrificed moving family to other side of country away from friends, family and support networks. We are anxious to settle now. Are we mad to buy now? Our house is in a county where house prices are 50-80k lower than what we would be buying here so we are at a loss in that regard.
Any advice welcome.
I am looking for some valuable advice re buying a smaller family home whilst keeping original house. This is our situation.
Last year we had to move for work and we are renting out our family home. Its worth 250-300K with a tracker mortgage of approx 72K left with 6 yrs approx to go. Current rent is 800 pm, we make up shortfall of 155 pm. We are renting a smaller property here for 750pm (total outgoings of rent + shortfall of mortgage = 905 pm).
We are keen to put down roots here as we will not be moving back as kids are established in secondary school now.
We have a lump sum of approx 140k to put towards the price of another house here but we are not sure what is the best thing to do. Bank has said if we clear original mortgage we get mortgage at higher variable rate of 160k but we really don't want to take out a big mortgage at this stage of our lives.
We look on the first property as our nest egg and hopefully in 5-6 years time when kids start college (1 son), we could then sell and release equity and build up our savings again with this.
We would need an extra 50-60k to buy house we are looking at but we would not need a loan, family member has agreed to loan us this and we pay it back, so interest free loan it would be.
I know we are in a very enviable position but we spent 3 years of being out of work and we worked hard to get ourselves out of it and sacrificed moving family to other side of country away from friends, family and support networks. We are anxious to settle now. Are we mad to buy now? Our house is in a county where house prices are 50-80k lower than what we would be buying here so we are at a loss in that regard.
Any advice welcome.