Buy Now Vs Saving a bigger deposit

Catatonia

When you say you're not here for the long-term, how long do you envisage living in Hampshire for?

There's no point buying if it's only going to be for 2 years, but if you might stay here 5+ then it could be worth it (also, if you're moving soon, you don't need to worry about prices in Hampshire, just about where you will end up moving back to).

Where in Hampshire are you? The market is quite variable, but in Winchester for example, house prices don't seem to have experienced much or any of a drop since 2007.

Loanranger

Mortgages will never be cheaper than they are now. If you buy now you'll be able to grab a mortgage deal. Interest rates will rise, they cannot go any lower with bank rate at 0.5%.
Suggest you go to a mortgage broker and get some advice on mortgages.
You could buy a 2 bed property for 150K, put down a 25% deposit and get a fixed rate mortgage for two years at say 3.6%. The sooner you get a mortgage the sooner it will be paid off.

So far, you've only heard opinions from those who say continue to rent but there the majority of people in the UK own their own property and enjoy the benefits of security of not being at the mercy of a landlord giving them notice, making the property into how you want it to be in terms of decor, style.

For me I would not entertain the idea of paying off a Landlords mortgage when I could be paying off my own.

Orpheo

Loanranger's post is full of, well, bull, frankly. For every £5000 that you borrow you will pay back an additional £3427 in interest over the term of the loan at 4.5%, even if you get an interest rate of 3.6% then you will pay back an additional £2665 for every £5000 that you borrow. Also any low fixed rates are likely to be introductory and will increase after the short term of the fix. So for every £5000 that you save you are saving between £2700 + £3500 in interest payments. Also for every year that you save money you are potentially lowering the term of your future mortgage by 1 year, further reducing the total amount of interest paid.

Loanranger, for some opaque reason is pushing loans.

This emotive crap about paying off a landlord's mortgage is rubbish. When you rent, you get a benefit, a roof over your head. The chances are that your landlord will have an interest only mortgage on a depreciating house anyway.

DVardysShadow

Loanranger wrote: »

Mortgages will never be cheaper than they are now. If you buy now you'll be able to grab a mortgage deal. Interest rates will rise, they cannot go any lower with bank rate at 0.5%.
Suggest you go to a mortgage broker and get some advice on mortgages.
You could buy a 2 bed property for 150K, put down a 25% deposit and get a fixed rate mortgage for two years at say 3.6%. The sooner you get a mortgage the sooner it will be paid off.

So far, you've only heard opinions from those who say continue to rent but there the majority of people in the UK own their own property and enjoy the benefits of security of not being at the mercy of a landlord giving them notice, making the property into how you want it to be in terms of decor, style.

For me I would not entertain the idea of paying off a Landlords mortgage when I could be paying off my own.

The fact that interest rates are historically low is the argument NOT to buy a house now. Low interest rates mean that repayments are low, but that they can only go up. As peoples' repayments go up, so the downward pressure on house prices will remain.

The optimum time to buy will probably be somewhere towards the end of a run of interest rate rises. If values are dropping, this has to be added to your mortgage costs if you are going to do a comparison with renting.

Loanranger

Orpheo wrote: »

Loanranger's post is full of, well, bull, frankly. For every £5000 that you borrow you will pay back an additional £3427 in interest over the term of the loan at 4.5%, even if you get an interest rate of 3.6% then you will pay back an additional £2665 for every £5000 that you borrow. Also any low fixed rates are likely to be introductory and will increase after the short term of the fix. So for every £5000 that you save you are saving between £2700 + £3500 in interest payments. Also for every year that you save money you are potentially lowering the term of your future mortgage by 1 year, further reducing the total amount of interest paid.

Loanranger, for some opaque reason is pushing loans.

This emotive crap about paying off a landlord's mortgage is rubbish. When you rent, you get a benefit, a roof over your head. The chances are that your landlord will have an interest only mortgage on a depreciating house anyway.

No, I'm not pushing loans.
The OP asked for opinions and I gave mine.
Your post is offensive, by the way.

Orpheo

Loanranger wrote: »

No, I'm not pushing loans.
The OP asked for opinions and I gave mine.
Your post is offensive, by the way.

You can be as offended as you like, special snowflake.

Loanranger

Orpheo wrote: »

You can be as offended as you like, special snowflake.

Did I say I was offended? No, I said your post was offensive.

It's a pity that these threads attract a bunch of people with their own agenda, house price crash, when the OP simply asked for people's opinions. I gave mine, you gave yours. No need to be sarcastic nor offensive. It's counter productive.

Orpheo

Loanranger wrote: »

Mortgages will never be cheaper than they are now.

Speculation, probably wildly inaccurate.

Loanranger wrote: »

If you buy now you'll be able to grab a mortgage deal.

Speculation.

Loanranger wrote: »

Interest rates will rise, they cannot go any lower with bank rate at 0.5%.
Suggest you go to a mortgage broker and get some advice on mortgages.

Interest rates will rise, probably bringing with them lower house prices.

Loanranger wrote: »

You could buy a 2 bed property for 150K, put down a 25% deposit and get a fixed rate mortgage for two years at say 3.6%.

Blather. If only mortgage interest rates were determined so casually.

Loanranger wrote: »

The sooner you get a mortgage the sooner it will be paid off.

Sounds simple, doesn't it? Any number of things could happen over the term of a 25 year mortgage to make this statement untrue. Furthermore, for every year you save an amount greater than HPI, you could, potentially, reduce the term of your mortgage by 1 year or more.

Loanranger wrote: »

So far, you've only heard opinions from those who say continue to rent but there the majority of people in the UK own their own property and enjoy the benefits of security of not being at the mercy of a landlord giving them notice, making the property into how you want it to be in terms of decor, style.

Loanranger has absolutely no idea what (s)he is talking about. For the term of my tenancy agreement, I effectively own the property and have almost all of the rights of the actual owner. If I want to change the decor or style, I can, the only caveat is that the property must, if the landlord requires, be restored to the original condition before the tenancy is up. Also, when renting a property, you might rent from a decent landlord, like I did.

Loanranger wrote: »

For me I would not entertain the idea of paying off a Landlords mortgage when I could be paying off my own.

This is such drivel that it is not even worth the effort.

Username: Loanranger. (Uh-huh)

thriftychap_2

House prices going up or down????? anyones guess.

1) If you are wanting to move from the area in 2 years time dont buy
2) If you see yourself staying then buy now IMO - i dont see house prices dropping much in Hampshire if at all. Offset any smeall drop (say 5% of a 150k house = 7.5k ) against 2 years of wasted rent @ 700pm = £16800.
3) with consideration of the above, you mentioned your mortgage would be £500 - this leaves at least £200 for overpayments, thus reducing your term and the interest payable
4) Mortgages are cheap at the moment - a good time to buy.

Loanranger

Orpheo wrote: »

Speculation, probably wildly inaccurate.



Speculation.



Interest rates will rise, probably bringing with them lower house prices.



Blather. If only mortgage interest rates were determined so casually.



Sounds simple, doesn't it? Any number of things could happen over the term of a 25 year mortgage to make this statement untrue. Furthermore, for every year you save an amount greater than HPI, you could, potentially, reduce the term of your mortgage by 1 year or more.



Loanranger has absolutely no idea what (s)he is talking about. For the term of my tenancy agreement, I effectively own the property and have almost all of the rights of the actual owner. If I want to change the decor or style, I can, the only caveat is that the property must, if the landlord requires, be restored to the original condition before the tenancy is up. Also, when renting a property, you might rent from a decent landlord, like I did.



This is such drivel that it is not even worth the effort.

Username: Loanranger. (Uh-huh)

Key word in bold.