FTB to get on the market?

SparciaM

I'm in a position in 6 months to consider a mortgage (with my parents help), they would act as 2nd party but not pay anything towards it.

Question is, I'm thinking of buying a 3 bed house near me for £110,000 and then rent out the other 2 rooms to help cover mortgage and ctax costs. I could afford a mortgage of £300pm at the mo and HSBC have offered me the full £110,000 over 35 years on a 2 year fixed discount term at 5.45% - question is, is this the right time to buy?!? I know people say things are going to happen, but over stretching on a bigger house is that good, daft or plain brilliant?

HSBC seem very happy for me to sign on the dotted line, but I'm still saving for the extra £1000 I need for a deposit as don't want a 100% mortgage. Should I take the plunge and move out of £300 + bills rent into a 3 bed or wait to see what happens with the market!??

dexters_mum_2

I'm always being told in my economic lectures that the housing market is rising fast, indeed in our area it is.
However, the only 'right' time to buy is when you can afford it and when you want to.

There is no harm in waiting 6 months if it means that you can put down some money as a deposit but you may find the £110k house is now £115k and hece you may need to save again.

If you are sure you could either get tennants for the other 2 rooms OR you could afford the mortgage on your own and YOU WANT TO, then go for it.

I bought my house at 18 and was my best ever investment but that was many many years ago, before the housing market became expensive!

Good Luck

sm9ai

In my opinion.....

SparciaM wrote:

but over stretching on a bigger house is that stupid, stupid or plain stupid?

Also...

SparciaM wrote:

Halifax CC: £230 @ 15.9% £50pcm
Smile Loan: £1800 @ 4.5% - £120pcm - free early 2008
HSBC Loan: £7000 @ 7.9% - £160pcm - free early 2010
First Direct CC: £2000 @ 2.9% £60pcm

I think with all these the answer should be quite easy!