Interest Free Mortgage better than renting?

putacoininthefountain

Hi,

I'm not sure if this is in the right place for this question so apologies if it's not.

I have rented for about 7 years now (never had a mortgage). I now pay £775 rent per month. Is it worth me trying to get an interest free mortgage to get on the property ladder rather than throw money away as some like to call it? My partner and I tend to live for the moment and enjoy nice holidays. We have no savings, no pension, no children (yet). We both take home about £40k year minimum and I'm starting up a new business at the moment. My mum owns her house so we could get some money from that towards a deposit.

Someone I met on holiday recently told me that property prices increase on average about 5% each year so it's always worth investing in rather than renting?

Any advice welcome - thought background info would help?:o

Many thanks.

mramra

Where do you plan to get an interest free mortgage?

getmore4less

When you find that interest free mortgage let everyone know we all want one.

You need to have a better idea of your spends and goals.

start with a SOA.
http://www.makesenseofcards.co.uk/soacalc.html

maveli

Interest only Mortgage ? Very difficult to get one now

herbiesjp

maveli wrote: »

Interest only Mortgage ? Very difficult to get one now

Not if you have a repayment vehicle set up in place to clear the mortgage

MrCarrot

I had no problems switching to an interest only mortgage with my current lender without a repayment vehicle, yet I had major problems getting a normal repayment mortgage from some other lenders.

I like the idea of interest only mortgages with the ability to overpay, since it becomes like a repayment mortgage but with more flexibility.

_Andy_

No savings, no pension, just started a business, interest only - not a good recipe for a house purchase.

uzubairu

_Andy_ wrote: »

No savings, no pension, just started a business, interest only - not a good recipe for a house purchase.

That's what I thought.