[KRS_SN]

Longish post warning.. I've lost £800 already by delaying on fixing a remortgage deal which was offered in January with HSBC and now rate is higher post BOE hike so really a shout out to see if any one here can make sense of my thoughts.

Mortgage is up for renewal on 31/3. Current rate 1.69% reverting to 3.74% svr on 31/3.
5 years left and 36 %ltv. Bought for 4.47k remortgage valuation is 5.5k so not bad since I bought it in dec 2017.

Problem 1 regret. Could have bought a house worth 600k then which might now have been worth more but played it safe then.

Problem 2. Greed/ego - ours is a new build 4 bed ( garage converted since and building regs into a 5th bedroom) but who wouldn't want bigger/more exclusive.

Problem 3. Our house is opposite to one of the top 3 best primaries and secondaries in Scotland youngest starts primary next year so handy to stay where we are kind of locks us in.

Problem 4. Both of us are 40% tax bracket so don't think any benefit in buying second home as when we sell we'll end up paying a lot of tax.

One more thought is will the prices of more expensive properties likely to falter with the covid/war etc so just wait it out for a coupleof years to snap up a deal ? Maybe the stupid lbtt system will get scrapped then.

Is there a point in spending on extensions is it possible make a profit when selling?

I've attached a screenshot of the current remortgage offer what would you guys go for if you were me.

So many questions sorry.

[robbiep]

I'd be taking the 5 year deal. Marginal extra cost over the 2/3 year deals, for a lot of security - and in uncertain times, security has it's own value

As to the 'problems' that you list, none of them are really 'problems'. There is really only one question : Do you like where you are or not ?

We managed to buy our 'ideal' place 11 years ago. A farmhouse, with land, in the countryside in the area we both grew up in (we only lived about 5 miles from each other, though we never met until we were about 20). I'm sure there are other places that come on the market, but we are happy where we are. I've never even felt the need to look at what else is for sale

There's a lot to be said for hammering the mortgage down as much as you can - yes, I know that interest rates are low, but they won't necessarily stay that way forever (I remember having a SVR of 13% on my first house), and if you can kill the mortgage then the house is secure forever - no matter what happens.

We paid off the last of our mortgage in 2016. It's a nice feeling that this place is ours, no matter what.

[gangzoom]

Firstly congratulations on having such a small mortgage/LTV.

Interest rates are only going to up from now on, we've actually just fixed ours, and like you even a 30 day delay in making a decision has cost us ££££ as rates have climbed.

Location is vital for schools, and a good school is not something that's around every corner, for the sake of a 12 months wait its mad to move away from persumed guaranteed entry.

Our last house was a new build, the problem with new builds is the lack of plot size and little chance of making the house 'yours' in terms of design. Equally, if you have such a low LTV you can afford a better plot/build/renovated something to fit your taste.

In your position I would stay put on a short term deal, get the kids into the school, then sell up/move to larger plot with an older house you can renovate to your standards. Or if you have the cash, buy a plot and do it up whilst living where you are now, then sell the current house.

[gangzoom]

Originally Posted by KRS_SN

Is there a point in spending on extensions is it possible make a profit when selling?

That's very unlikely on a new build plot unless it's very unique.

[un1eash]

We'll be moving on the 25th, been in our current (first) house for 11 years now. I regret not buying 2-3 years ago as prices have gone up about 20% in that time. We've gone for a new build as it ticks nearly all of the boxes on the wanted list we were after.
We got lucky with buying this house, ported and locked in a 5 year fixed at 1.49% 4 days before the base rate went up, existing mortgage is at 1.26% for 4.5 years.

[Armaan]

5 year fixed for me in your situation - doesn't sound like you've got a huge amount of inclination to move and more reason to stay put in that time.

Armaan

[Tengocity]

Sort the fix asap. It doesn't stop you moving if you decide to at a later point.
We don't have kids, so never needed to worry about schooling, but I've got friends who feel a bit stuck in a house they don't love, because it's ideally placed for the schools they want.
I agree, the stamp duty rates are crazy, especially in Scotland.
To justify it we really wanted this move to be our forever home. It's got a proper sized plot and plenty of potential. Something we didn't have at our last place, which was also a new build.

[MashinBenzin]

Take the 5 year fix asap.

There's no guarantee they won't go down again, but that's a low risk and very low penalty. There has to be significant risk that they will go up further and that's potentially a very high penalty.

No brainer to fix imho as you are not certain enough on moving. If you did you may well be able to simply port this to the new property as long as you take out any new additional mortgage with the same lender.

[MashinBenzin]

Originally Posted by Tengocity

Sort the fix asap. It doesn't stop you moving if you decide to at a later point.
We don't have kids, so never needed to worry about schooling, but I've got friends who feel a bit stuck in a house they don't love, because it's ideally placed for the schools they want.
I agree, the stamp duty rates are crazy, especially in Scotland.
To justify it we really wanted this move to be our forever home. It's got a proper sized plot and plenty of potential. Something we didn't have at our last place, which was also a new build.

Yeah when we moved six years ago (pre-kids but knowing they were on the horizon) we decided to buy the house not the schools. School fees instead, but we are in a house we love and have open choices on schooling with many independents in and around the city.

[Hugrov]

I fixed for 5 years last August, I was concerned that we were going to see several interest rate rises due to Brexit/Covid etc over the next 3-4 years. Obviously, I had no idea that the Ukraine/Russia situation was going to happen but I'm pleased we managed to fix, as well as reducing our term by 5 years at the same time. In these very uncertain times, I would personally get on a fixed deal asap.

[Techno 9000]

^ +1. Certainty in uncertain times.
If you can afford the payment, there is little downside to choosing a 5 year fixed at these low rates.

[gangzoom]

Currently 5 year fixed rates have already risen to the point where they are pretty much the same as 10 year fixed rates. S it depends on when/if you plan to move, but I've just signed up to a 10 year fixed on a 15 year term.

Given all that's happened in the last few years I cannot see things being 'stable' for a long time to come yet. It makes little difference to anyone but us, however knowing exactly what our mortgage payments will be for pretty much the majority of the debt going forwards is some comfort.

[KRS_SN]

robbiep we have perfect neighbours and love the location. You seem to have a great situation finding a life partner and house local to you we have moved a lot through the years(countries cities etc). We had a weekend at a working farm recently(meadowhead cottage waterside) really enjoyed the setting.

[KRS_SN]

gangzoom yes location and school is a bonus. The garden is largish (for a newbuild) but the project may test my time and patience and the what if if I'm not happy with it at the end aspect(justmy problem). Interesting thought about buying a plot etc. Will perhaps have to research this a bit more. Congrats on fixing a 10 year deal.

[KRS_SN]

Originally Posted by un1eash

We'll be moving on the 25th, been in our current (first) house for 11 years now. I regret not buying 2-3 years ago as prices have gone up about 20% in that time. We've gone for a new build as it ticks nearly all of the boxes on the wanted list we were after.
We got lucky with buying this house, ported and locked in a 5 year fixed at 1.49% 4 days before the base rate went up, existing mortgage is at 1.26% for 4.5 years.

Best of luck this was the offer for the 5 year deal in Jan. I was thinking of posting here then just didn't get around to it then :-(

[KRS_SN]

Tengocity
Thanks,kids do come in the way of most things. We have a dog now and mrs and I often joke that if we had him first we probably wouldn't have had kids who are always complaining while the dog seems always happy and grateful.
MashinBenzin
Wasn't aware until your and Tengocity's opinion that the mortgage could be fixed but then additional lending from the bank if I wish to move in the period of fix. This stabilises the commitment phobe worry in me that still can move if I wish.

[KRS_SN]

Originally Posted by MashinBenzin

Yeah when we moved six years ago (pre-kids but knowing they were on the horizon) we decided to buy the house not the schools. School fees instead, but we are in a house we love and have open choices on schooling with many independents in and around the city.

Considering 12k/yr fees for pvt schols around here total per kid over 13 years of schooling would be £187200, more the number of kids more the multiples of that. That's serious money!

[MashinBenzin]

Originally Posted by KRS_SN

Considering 12k/yr fees for pvt schols around here total per kid over 13 years of schooling would be £187200, more the number of kids more the multiples of that. That's serious money!

Similar numbers here - although it starts cheaper and works up to senior school rates.

The house equation though, was much smaller and large project or +£300k for similar size etc. We paid £550k and would have been well past £800k for the areas with the best schools across all age ranges. Or more likely we'd still be in a £550k house with a bunch of unstated/unfinished projects 😂😂

Schools apart, we are actually better located too for commuting (anywhere), direct park and woodland access and closer to the real countryside too, whilst being ten minutes from the city.

Never easy choices once kids are involved in cities with high property prices.

[robbiep]

Originally Posted by KRS_SN

Tengocity

MashinBenzin
Wasn't aware until your and Tengocity's opinion that the mortgage could be fixed but then additional lending from the bank if I wish to move in the period of fix. This stabilises the commitment phobe worry in me that still can move if I wish.

You've got a wife, kids, dog, and a mortgage.

For a commitment phobe, you're doing crap !

[un1eash]

Our budget was stretched, kept looking further and further out of the city but then thought do we really want to be 30+ minutes from friends and family.
We're actually only moving a mile away 5 mins down the road right next to the primary school both kids will be attending come August.
I hadn't really thought about the schools when we first started looking but we're now going to be walking distance to them. There's an outstanding rated secondary nearby that my partner worked at for 8 years and a new secondary school is being built on the development we're moving too.

[NotGotABimmer23]

We are moving now, initially we bought the house, and it's a lovely house, but we made a mistake with hindsight. This time we have bought the area, including excellent schools and I think we are making the right call, ended up with a similar size house although a very different style, nicer in some regards with some sacrifices. The local secondary here is poor and private school fees would far exceed the additional cost of living in a better location.

I don't really know what the OPs question is, we fixed in Jan on a 5yr at 1.5%, I knew rates were going to climb so got in fast. Personally if I were you I'd just lock it in for 5 years and be done with it, can always port it elsewhere if required.

[KRS_SN]

Originally Posted by robbiep

You've got a wife, kids, dog, and a mortgage.

For a commitment phobe, you're doing crap !

Ha...I'm also bad at saying no..when she asked me to marry her then for kids dog etc. The only real commitments I have control over are cheap energy/mortgage deals etc!