Q: We have decided that we want to move and have some of the debts I would like to get paid. The main thing I was wondering people opinions on whether we should rent for a while so we are able to save, get our credit rating back on track or buy a different house – my mother is sure to about getting off the housing ladder so to speak and unable to get on (I think shes very old-fashioned in her mind).
Any ideas would be greatly appreciated!
Would it not be a better idea to pay the debts off instead of paying interest when you have the cash? This is what confuses me as I have debts, but just assumed the best thing to do would be to clear the lot, put the rest of the equity in a notice account and start adding to it?
My view (and this is my own personel view), is that even if house prices continue to rise, you're not going to see year on year 10% rises as we;ve recently seen, which would leave you left behind. I can't see how this can continue anylonger. We're coming to the end of an econmic boom and increasing any debt now can not be good. (http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/02/06/cnmerr06.xml)
The only warning about renting after selling up is that you have to be disciplined in both with any capital you have from the sale of your house and also make sure you are banking any extra cash you make from renting v mortage. Its really important that you try and get saving once your debts are clear and then that should leave you in a fairly strong position to get back on the ladder.
If you're not disciplined with your ￡ and would be tempted to spend any capital, I would tread carefully. Some people need the discipline of a mortgage.
Couldn't agree more- we have just sold and are renting again (it's actually a relief not to be responsible for the building repairs etc!) and have put our funds into a 60-day notice account so we're not tempted to touch it. We're not in a position to save yet, but now have a spare ￡500 a month to pay towards our nasty horrible debts!
If you're buying with a view to only being in the property for 5 years, I would think long and hard before committing to anything and make sure you have a plan B should a correction take place.
My view (and this is my own personel view), is that even if house prices continue to rise, you're not going to see year on year 10% rises as we;ve recently seen, which would leave you left behind. I can't see how this can continue anylonger. We're coming to the end of an econmic boom and increasing any debt now can not be good. (http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/02/06/cnmerr06.xml)
The only warning about renting after selling up is that you have to be disciplined in both with any capital you have from the sale of your house and also make sure you are banking any extra cash you make from renting v mortage. Its really important that you try and get saving once your debts are clear and then that should leave you in a fairly strong position to get back on the ladder.
If you're not disciplined with your £ and would be tempted to spend any capital, I would tread carefully. Some people need the discipline of a mortgage.