Savings - How much to use for deposit?

BitterAndTwisted

Tom2001 wrote: »

Thanks all once again. Given me plenty to think about and helped to focus the mind.

Very interested in the offset mortgage, not really considered this before, but it seems a good way to make savings work help paying off the mortgage, but still have access to them if need be.

Some I've looked at seem to say they are interest only, but I guess I'd be free to pay the extra as I would in a repayment to be constantly paying off the capital?
Would I be tied to an offset mortgage and the same provider for the whole length of the mortgage, or could I switch to an ordinary repayment at a later date, if I wanted to?

I don't think you've been looking at the right products. My sister has very recently bought a property with a repayment offset mortgage.

dimbo61

We have a repayment offset mortgage with YBS and FD also do both IO and repayment. You are free to change lenders at the end of any deals !!! ( check with lender!)
Agree with B&T if you can afford a house then buy a house ( detached if possible )
Stamp duty over £250K is 3% and I hate paying any more taxes

hazyjo

dimbo61 wrote: »

Agree with B&T if you can afford a house then buy a house ( detached if possible )
Stamp duty over £250K is 3% and I hate paying any more taxes

In SE London? You'll be lucky!

I suppose you might manage a semi-detached at a push in somewhere like New Eltham or Bexley...

If you're talking about anything closer to London like Blackheath, Greenwich, etc, it'll have to be a flat.

Jx

stevlee

well done for the large savings, we were in a similar position last year and did end up purchasing in SE London. For a 250k property you are looking at the edge of London postcode or kent, for a freehold 1930s or victorian property in decent nick. Yes do go for offset mortgage if you are in a good position to save and make overpayment. Do remember to budget your monthly outgoing will go up a lot compared to a shared rental house you are used to currently, unless you decides to take in a lodger immediately.

AdmiralX

hazyjo wrote: »

In SE London? You'll be lucky!

I suppose you might manage a semi-detached at a push in somewhere like New Eltham or Bexley...

If you're talking about anything closer to London like Blackheath, Greenwich, etc, it'll have to be a flat.

Jx

There is a beautiful Conservation area called Progress Estate in Eltham SE9. The houses 2 bed + up with functional v good design are value for money lovely inside and there is neighbourhood character. Catford SE6 has lovely streets and facades value for money. The Co-op Estate in Abbey Wood SE2 is beautiful with well designed homes old style. has good links with Charing Cross. It is value for money.