Should I buy a flat or continue saving?

hunterross

Hello money savers, long time reader 1st time poster

I am contemplating buying a one bed flat to rent (and eventually live in). Am I better off doing that or continuing to save money towards a deposit?

I have around 20k in savings and isas and I could probably borrow some additional funds from family if needed to.
My rent is dirt cheap at the moment, i have no dependents / partner, so I'm in no rush to buy, and I have an income of around 40k.

Ive been looking at what I could afford to buy - am I right in thinking the mortgage I could get is (2.5 x yearly income) - deposit?

Thanks Ross

dimbo61

You should be able to borrow 3.5/4 X income if you have a SAFE ! job.
If you buy a flat to rent out you need a Buy To Let mortgage and at least 25% Deposit.
You need at least 15% Deposit for a normal mortgage and 25% would be better so if happy in your cheap rented flat ? Then carry on saving