first- time buyer - at 55

SallyD

I am due to retire at 61 and a bit, so a while to go until I draw my pension.

I am debt free, live in a council house which I have not been able to buy - and won't ever be able too. Looking to buy up North in readiness for my retirement, top whack £120,000 putting at least 50% down.

Here goes, Building Society where my savings are or a broker?

Do I go for the maximum length of payments time available with an option to pay off as and when (lump sum payout on pension) or stick to the 6 years?

Would like to rent out for the time being, maximum rent would be £350 for the type of house I am buying in the area.

Nationwide quote me 6 years at £1,000 a month, was hoping the rent would go somewhere near the mortgage?

Property I am more than likely to go for would be around £100,000. straight repayment at fixed rate, variable or interest only, oh, so many questions. I really do not want to appear such a dummy when I go to whoever to discuss what they can offer me. Thanks in advance.



Any suggestions, advice greatly received.

Mr_helpful

If you are going to rent it out then you should have a Buy to let mortgage but they tend to work a little differently. You put down a minimum of 15% but you might need more with that rental and you can deduct the interest and other expenses for wear and tear etc against tax as the rental is classed as income for tax purposes. To make it most tax efficient you need interest only and carry on saving elsewhere, however if you prefer you can have repayment. You are best off with an independent broker prepared to work fees free who has experience of Buy to Let.

The_Eternal_Optimist_2

Where about up north will you be buying?

Gorgeous_George

If you are entitled to a substantial discount off your council house under the right-to-buy scheme, it may be wise to fully investigate this option first. You should have enough time left at work to fulfill any minimum time requirements before selling.



GG

SallyD

Thanks for your responses.

I am looking to buy around the outskirts of Huddersfield, something that is cheap and cheerful compared to Central London prices.

I do not really understand about the interest only mortgage being offset so I really have some research to do on this "Mortgage thread".I am sure I will be posting lots of questions.

Buying my council house is not an option.

cattie

Sally, you don't say why buying the council house you currently live in is not an option, whatever the reason, if it really isn't a possibility could you not try to get an exchange with somebody living in the area you wish to move to?

This way, if you do have rtb status that will still stand & you could then set the wheels in motion to buy the new place, once you've completed any residency requirements.

herbiesjp

SallyD wrote: »

Thanks for your responses.

I am looking to buy around the outskirts of Huddersfield, something that is cheap and cheerful compared to Central London prices.

I do not really understand about the interest only mortgage being offset so I really have some research to do on this "Mortgage thread".I am sure I will be posting lots of questions.

Buying my council house is not an option.

Just out of curiosity, what's the difference in prices?

SallyD

Exchanging is a good idea, and not something I have really given much thought too, but certainly worth a try. A good suggestion, thanks.

As to prices, £120,000 will buy me a nice 2-3 bedroomed house eg., Kirkburton - Denby Dale and surrounding areas, my two up and two down is valued at £450,000 in North London. £120,000 will not buy me a one-bedroomed flat.

herbiesjp

That kind of price difference still astounds me!

I'm in Finchley and know the prices around here have gone barmy - I've had a few glances elsewhere, but still undecided myself

SallyD

Herbie, I'm in Highgate so you can imagine.

My son relocated to a village outside Huddersfield two years ago and has'nt looked back, mind you he is on a London salary.

I simply want to put the bulk of my savings on a small property with a view to moving there when I retire. Having never lived beyond my means and always kept my head above water always been credit free. So this mortgage business is all new to me. I have appointments next week with BS/morgage advisor etc., will do my reading and post questions as and when they arise. Thank you to everyone this has responded.

herbiesjp

I know Highgate very well indeed, and the village, was there only last week at the Flask! :beer:

Indeed I think it is very wise of you to get as much information as possible as this is a big step, and you need to make sure you are doing all you can to get it right

Any other questions just fire away