fed up!

mumof4littleones

I was planning to take the mortgage over 25 years, the mortgage will cost the same as it would to rent, so either way I will have to find the repayments, in 18 months time my youngest will be at school full time so I can increase my hours, or sell a kidney!

zagfles

mumof4littleones wrote: »

I was planning to take the mortgage over 25 years, the mortgage will cost the same as it would to rent, so either way I will have to find the repayments, in 18 months time my youngest will be at school full time so I can increase my hours, or sell a kidney!

Remember also that if you own you'll have to pay for maintenance, buildings insurance, repairs round the house etc, these costs are often forgotten when comparing buying with renting - have you budgeted for what happens if the roof starts leaking or the toilet gets blocked?

If you rent furnished then even the appliances playing up are your landlord's problem eg washing machine breaking down.

You're in a well paid job so perhaps leave buying till you can up your hours and maybe get a mortgage on your own?

Oldernotwiser

goffo wrote: »

I would have thought that coming off the property ladder at this time is not the best advice.

With a substantial deposit, and being able to get a mortgage, the poster is in a very enviable position to dictate price with the vendor.
To lose your place on the property ladder can take years to get back on it. In the meantime you pay rent to a landlord and have no asset to go with it.

Obviously get good legal advice re the ex as well.

Yes keep your deposit safe, but what return will you get from it?

Now is the time to buy, when prices are depressed. Take advantage of others misfortune of having to sell even at below what they paid for it.

But does the OP have a substantial deposit and is she able to get a mortgage? From what she says, she only has a 10% deposit and will, as I said earlier, be looking to borrow £160,000 on a joint income of about £40,000.

zagfles

goffo wrote: »

Now is the time to buy, when prices are depressed. Take advantage of others misfortune of having to sell even at below what they paid for it.

Prices may have gone down a bit over the last few years but they're still running way above historic trend of around 3x average earnings. They're close to 6x average earnings, and there are tough times ahead. I can see prices returning gradually to the norm of 3x average earnings, perhaps through price stagnation for the next decade or two.

Besides which the OP should consider her cashflow situation over the next few years ahead of anything else.

p00hsticks

mumof4littleones wrote: »

the mortgage will cost the same as it would to rent,

It might at todays interest rates, but what if interest rates rise as they are predicting in the next year or two ?

Jowo_2

p00hsticks wrote: »

It might at todays interest rates, but what if interest rates rise as they are predicting in the next year or two ?

Read this article - it's really alarming. A debt charity and the journalist reviewed the impact of interest rate rises. An increase on the rates by 2 or 3 percentage points may add on up to more than 40% on the repayment cost of a mortgage.

"A rate rise of one percentage point would add £76.38 to the £648 monthly cost of a 25-year £150,000 repayment tracker mortgage with a rate of 2.17% (the average of the three current best buys), according to Moneysupermarket.com. A two percentage point rise would add £158 per month and if the mortgage rate rose by three percentage points to 5.17%, borrowers would face an extra £244 each month."

http://www.guardian.co.uk/money/2011/jan/30/interest-rates-financial-ruin?INTCMP=SRCH

In a scenario like this, the OPs potential mortgage increases substantially from £950 per month.