monthly mortgage costs????

lea2012

Hi everyone,

Me and my hubby are currently in a situation where we need to move from our rented accom and are unsure what to do.

At the moment we pay £350 a month for our terraced house in lancashire and need to move as the house needs work doing that the landlord wont do and after 12 months of asking have decided its easier just to move. We have applied to our local housing association but unfortunately demand is high in our area and we have already been waiting 3 months with no hope in sight.

We can afford to pay more rent and if we want a decent house in a nice area we are looking to pay £500 a month at the moment. Earlier in the year we were going to buy and put an offer in on a house but it fell through and we decided to leave it for a while. Now we are thinking of buying again and would probably be looking at about £65-£75k mortgage with us paying a £5k deposit. We have seen houses in our area for that price that are suitable but would like an idea of the monthly costs for the mortgage compared to renting at £500pcm.

We earn around £2000 a month in total after tax and after paying our childcare fees. As we have been renting for 2 years now we know what our outgoings are for bills,food etc so can afford the £500 a month for rent but not sure if a mortgage would be the same price or would be worth it at the moment??? We have noticed a drop of around 10-15% on house prices in th areas we like since March this year so obv if this is set to continue we may be better sticking to renting?

Any advice greatly recieved and appreciated! Thanks for your time x:rolleyes:

beecher

You'd be far better having a 10% deposit as I'm not sure how many 95% deals there are available. Also remember you need money for fees and costs relating to moving. You also need to factor in insurance costs and maintenace/upkeep of a house.

This mortgage calculator should help you work out mortgage costs, but remember to factor in possible interest rate increases.
http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

A £75,000 mortgage over 25 years would cost £506.41/month at 6.5%

I'd advise saving up a 10% deposit and seeing where house prices are then - you really don't want to be buying now with house prices falling as you'll be in negative equity before you know it.

getmore4less

As a rough guide 0.5%pm is a good guide to the interest on mortgage.

so £80k £400pm but that is just the interest so similar to renting.

remember when jobs need doing you will have to pay, least with renting you have the choice to move,

I would get some advice on getting the landlord to get the work done, it might be possible to get the work done and charge him, starting with a small job that is less than the rent/deposit might sort the landlord out

lea2012

Unfortunately the list is endless of jobs for the landlord. They are things he kknew about 2years ago when we first moved in and that he has just ignored ever since!! The major one is that we are a gable end terrace and the whole outside wall is damp, floor to roof! The plaster has come off behind the wallpaper in the front room which looks a mess and now we have discovered damp patches in the bedroom too!! The fence needs fixing in the garden outside as we currently dont have one so my daughter cant play outside for fear of her escaping. The shower is leaking and is so bad and been going on that long that there are black patches on the ceiling which is underneath it!!
Rang the landlord every week with an issue when we first moved in but after 18 months got fed up of getting nowhere and have just given up!! Been umming and aahhing over what to do for 6 months now with mortgage vs renting!!

Will stick to renting for a while longer I think whilst we save a deposit but its just hard to think we will move again now and in another 6-12 months may be moving again into our own bought house!! Rather impatient and just want something to call our own and settle down!

Thanks for all the advise though and will be asking again once I have a 10% deposit I'm sure!!!

getmore4less

Ok sounds like you got a duff one time to move on, even a cheap place is not worth the risk to your health

Once you have a new place lined up get the council environmental health in to inspect the place,

Excesive damp and mold spores could be making the place uninhabitable, that would force the landlord to fix things or have the place declared unfit for habitation.

I did a google "environmental health fit for habitation damp mold" found loads of references did not read them though,