To OP or SAVE ?

version2014

Hi All,

Here is my dilemma, should I continue to make OP or save a deposit for a house.

I have a new build flat on firstbuy. I own 100% and have a 20% equity loan. Until the loan is cleared I can't sublet it.

I am really missing having a garden, and would like to buy a house at some point. To do this I will need a sizable deposit.

At present I have 6 months livable savings, and so I am now OP the morthgage by doubling it each month.

I am wondering though, if I am to get me a house should I save for a deposit or keep OP so if I come to sell the flat I should get more back?

Anyone been in this situation or have any thoughts?

joedenise

I think it depends on savings rate v mortgage rate. No point putting money into savings with a lower rate than you are borrowing the money to pay the mortgage.

Denise

version2014

True but then I need savings to use as a deposit on a house, but then if I sell the equity could be the deposit. Hmmm

RosieTiger

If your planning on selling the flat before you buy a house then it makes no difference really
Just comes down to the interest rates decision and your attitude to risk - are you confident in the value of your flat then over pay, if not save.

version2014

RosieTiger wrote: »

If your planning on selling the flat before you buy a house then it makes no difference really
Just comes down to the interest rates decision and your attitude to risk - are you confident in the value of your flat then over pay, if not save.

Two trains of thought

1) Sell it and move on

2) Try and get it into a buy to let longterm

I guess the buy to let is not very likely tbh.

So selling seems the sensible option.