To start off mortgage free or not?

jeblee_2

After an inheritance and a few savings I currently have about £45-50,000 to spend on a house. Now do I buy a small one bed flat/studio flat or do I struggle away to get a mortgage and get something a bit bigger? If I get a studio flat will I see much return if I sell it a few years down the line, I was thinking of maybe renting it out once we want to move on. I really love the idea of being mortgage free, especially as the money I save can be squirrelled away for when I do want to upgrade but a few people have said its better to get somewhere bigger.

patrickbateman

Hi just my opinion, but if I were you I wouldnt buy a 1 bed or studio flat. There are too many of them due to oversupply - just look at how many are empty and for sale or rent. A better bet would be to buy the kind of house that will always be desirable with enough bedrooms for a couple and potentially there first children.

Also I wouldnt overstretch yourself with a big mortgage at the moment as realistically there is only one way mortgage rates, and therefore payments can go...

ailuro2

It depends on whether you have money left over at the end of the month or not.... and do you need somewhere to live, or is it purely to rent out?

Jonbvn

OP to many unknowns. What about your job? What sort of income you have will dictate the size of mortgage you can get, and therefore what size/type of property you can buy.

I wouldn't buy a studio flat ever. There is a massive oversupply of new build flats in the UK. I can see no upside for them any time soon.

uzubairu

I wouldn't bother with a studio flat.

If you'll struggle to get a mortgage on something bigger than a flat with a £50K deposit, then you may have to wait and save a bit more.

Your decision will need to be based on your income and the cost of housing in your preferred location.