First Time Buyer with HEAPS of questions!

fimonkey

Hi All.

More questions.... Get yourselves a cuppa (or pint) it may be a long one!! It's a savings Vs mortgage question.

I am 30 years old and earn £28K p.a. I have 10K debt and 2K savings. I'm about to inherit between 30 - 40K. I live in Bournemouth and I currently rent a room in a shared house for £300pm inclusive. (sorry for reiteration, just incase some ppl didn't want to read through whole thread). Also if using acronyms, please can you explain what they mean? i.e. what's AIP?? Many thanks!

What would you do in my position out of the following? (I'll work on the lower figure of 30k inheritance).

1. Pay off the debt then invest the remaining 20k in the hope that house prices will steady out/fall? (I use the term 'house rather loosely as it'll more be an overpriced shed that I buy). If so where would be the best place for this money?

2. Pay off debt, stick 5K to one side for savings, and another 5K to one side for fees etc, then use 10K as a deposit and buy a flat now? I was thinking of 130K MAXIMUM! Is this reasonable for my salary? (providing I put my social life on hold).

2a) If 2, then should I be looking at securing a mortgage deal now or wait until the money for deposit is firmly in my bank?

2b) How would I find a fees free whole of market morgage advisor in Bournemouth with a good reputation? (Have asked but no personal recommendations, most ppl seem to go to their banks). What questions should I ask of them to determine their ability? (and what answers should they give)?

2c) I would be buying a flat for sure (no chance of affording a house) and all of them are leasehold. What's the minimum term of a leasehold a bank will consider lending on? (Some flats are advertised with only 50yrs remaining). And is it expensive to renew a leasehold?

2d) Would you wait unitl April when the homebuyers pack is introduced? or beter to act now?

I have SOOOOO many more questions, ..... but I'll leave em for now.

Thanks in advance!

Fi