Buying over Renting?

udjamaflip

Hi,

Firstly I am not entirely sure if me and my girlfriend will be able to buy a flat/house as we are both pretty fresh out of uni and still clearing off our overdraughts, and we're quite careless with going over-over drawn during our university lives.

Basically we have been told for a flat we live in we would be paying less on a mortgage than what we pay for renting it, Just wondering if anyone knows mortgage lenders which cater for people in our position who are making an ascerted effort to clear off debt, and want to be able to put our £575 p/m towards a mortgage rather than a landlord who takes months to repair fire safety lights etc.

Thanks for any advice (we are both 23 if it makes a difference, and have been clear from 'blackmarks' for a good 9 months, it will be 12 months in June)

Thanks,

Andy

Gorgeous_George

There is a lot more difference between renting and buying than just the mortgage payment. In your position, the risk of interest rate rises would be the largest risk to avoid.

My advice is not to buy a flat or house that is just large enough. Buy something that will meet your needs for at least the next ten years and that is in area that you would like to live. Save 20% of the house value and then ask for a mortgage.

GG

Dinah93

In this climate you need a deposit. My OH and myself graduated from uni 2 years ago and have only very recently got to the position where student debts are cleared and we can start aiming to save a deposit. The rates at the moment for people trying for a mortgage on 10% deposit are terrible, you need at least 20% deposit in the current climate to be getting a sensible rate. Some of my friends who bought when we left had no deposit are in difficulty now who bought rather than rented as it was the same price per month, as they can not get a new deal as their house is worth less than the mortgage. I really feel for those who jumped in two years ago and now need to move (one couple just had twins) but can't because of the housing issues.

Who told you you would be paying less on the mortgage than the rent? This could be dependant on the deposit you put down and therefore the size of the mortgage. If your landlord told you I wouldn't be suprised if he is trying to shift it, as there has been a collossal oversupply of flats in city centers whose prices are now dropping like a stone. In some areas the repossessions in these blocks are being bought up as local authority flats, and in others the service charges have been hiked HUGELY to cover absentee landlords or repossessions, always be aware buying a property, including a flat, always has a lot of ongoing costs you don't get with renting.

Rent as cheaply as you can, you don't want to be paying someone else's bills to live luxuriously now when you could live simply now for a few years and own a great place of your own in a few. Try to take a longer term look at if it would still meet your needs in five years, rather than a 'right now' perspective.

fineanddandy

Some good advice above...I think if you haven't got at least 20% deposit, you will struggle to get a mortgage anyway in this current climate..and of course, your liable for the upkeep of the property, whereas your Landlord will be responsible for repairs if you rent...and believe me, the maintenence costs come thick and fast, and just when you dont need it

Good luck in your decisions