Pro's/Con's- Stay renting or apply for 95% mortgage?

ValHaller

harpoboy wrote: »

Interesting (yet deeply flawed) view.

Thousands of British soldiers (including my own grandfather) have died over the past hundred years to defend our freedom and liberty from totalitarian rulers and thier media lackies.

And every one rejoices at their freedom from media lackies as they read their copies of the Sun. As they say, in Soviet Russia, the media lackies rule the politicians. Wait, that's not Soviet Russia where that happens at all .....

Sorry your grandfather probably died in vain.

Ad86

Fire_Fox wrote: »

You need more than a deposit, you need all the costs of buying - legals, surveyor - plus a float for furnishing and decorating adn white goods. Then you should have three months mortgage and insurance payments set aside in case of illness, injury, unplanned pregnancy or redundancy. Support for Mortgage Interest does not kick in for this long and then it only pays the interest not the capital.

You are not wasting dead money on rent, that only holds in a steadily or sharply rising market not a recession. If you'd purchased five years ago in many areas you'd have lost tens of thousands of pounds, many with a 5% deposit are in negative equity. Property is only a good investment long term, it's a gamble shorter term. Once you have your own home you are responsible for all repairs and maintenance, if you cannot save up another 5% how can you save up for that? How will you be able to save all the costs of buying and selling to upsize in a few years?

Better to ask your next landlord for a long let, an AST doesn't have to be minimum six months it can be anything you agree. Given you work at the same company could you live close enough to walk or cycle, then give up the car to save money?

Lastly do you know where every last tenner of your income goes each month? £5.5K rent out of £26K gross should leave plenty of wiggle room for frugal living and saving, that is about £23K take home so £17.5K a year to spend on council tax and living expenses. There have been MSE challenges like 50p a day per head for a healthy diet and 'live on £4K for a year' (a whole family!).

Thanks. You have definently given us some things to think about.