L
The way to think about this is to forget about prices going up or down. The bottom line is can you afford to pay the mortgage? and can you still afford it if rates go up in the next two years? If not, think about fixed mortgage. It is irrelevant as to whether the price goes up or down after you buy the house.
... I would really only be buying now to protect myself if the prices were to go crazy again and I'm stuck in two years time paying and extra 30% .... I'd be buying outside where I'd eventually want to settle and if it was the case where the prices were to come down I'd be stuck out there then and not really wanting to be there.
The way to think about this is to forget about prices going up or down. The bottom line is can you afford to pay the mortgage? and can you still afford it if rates go up in the next two years? If not, think about fixed mortgage. It is irrelevant as to whether the price goes up or down after you buy the house.
even if prices did substantially move they would move with a certain degree of correlation leaving you roughly in the same position as before in terms of your target home.
Affordability: Is not driven by interest rates but by income
Well that's just plain wrong. Interest rates and income are both factors in calculating amount that can be borrowed.
...I would really only be buying now to protect myself if the prices were to go crazy again ... I am in a position not to buy ... I'd be buying outside where I'd eventually want to settle and if it was the case where the prices were to come down I'd be stuck out there then and not really wanting to be there
You seem scared not to buy in case prices go up, but scared to buy in case they go down, neither of which is unreasonable, but it's a lot of pressure and stress for you.
Its always been my impression that a certain amount of price inflation is desirable/required if you are looking to trade up in the future, as this will increase your equity.
What the bank use to evaluate people is their own business ...
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