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  • Probably getting a bit ahead of myself here, but I'm thinking a few years ahead to our next house purchase (2.5 years to run on current mortgage) and will probably be looking to spend a bit more than we did last time for a 'forever home'. Currently on about 30% LTV ( I was VERY cautious pre-Brexit) but would be looking to move to about 60%. That would mean saving c.20k in the next 2 years which might be possible but seems like a high goal.

    My other options as I see it are a) selling then renting for a bit b) some sort of bridging loan

    Is there anything I've missed?

  • Not quite sure I follow?
    A) would this be to save reduce your outgoings so you can save more?
    Typically the interest payments are pretty low, and far less than the rent you would pay. If your mortgage payments are high, you are paying capital off the mortgage, which otherwise you would using to save/pay rent?

    B) bridging loan is probably not the term you’re looking for.

    At the time of moving, you workout how much mortgage you need with the equity you will get from sale and your savings and go with that. I think particularly for your forever home, there is no real need to worry about getting to a certain deposit level, as currently house prices are increasing faster than most people can save.
    Also as you can port the mortgage you don’t necessarily have to wait for 2.5 years before you start thinking about moving.
    It’s important to try and keep costs low, but for example is a £2k early exit penalty all that important when you’re offering 20k over asking price to try and secure the property?

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