FTB with large deposit-Best type of mortgage?

Bones74

Hi there,

I have recently learnt that my friend is selling the house I currently live (on very reasonable terms-£60 week all in!). I have decided to buy my own place and have £50k saved up which I would like to put down as a deposit on a £90k-100k flat. My gross income is 15k and I take home just shy of 1k a month (of which I probably save £500). Bearing those figures in mind I was wondering which would be the best mortgage deal for me-a friend of mine suggested an offset but I would appreciate anyones advice on here. (Would it be better in the current climate to rent?)

Many thanks in advance

sarkin

If you use the money for a deposit you will have nothing left to offset. Offset mortgages can be good but atract a higher rate. I would look at fixed rates myself. Whats your credit history like?

meanmachine_2

Bones74 wrote: »

Hi there,

I have recently learnt that my friend is selling the house I currently live (on very reasonable terms-£60 week all in!). I have decided to buy my own place and have £50k saved up which I would like to put down as a deposit on a £90k-100k flat. My gross income is 15k and I take home just shy of 1k a month (of which I probably save £500). Bearing those figures in mind I was wondering which would be the best mortgage deal for me-a friend of mine suggested an offset but I would appreciate anyones advice on here. (Would it be better in the current climate to rent?)

Many thanks in advance

By my calculations you've been saving for 8 and a half years.

That's disciplined.

Bones74

Thanks guys, I have no credit problems. What Id like to do is pay off the mortgage in the shortest time possible so I pay the least interest. Bearing in mind my savings of 50k (which could be all deposit or not) and affordable monthly mortgage payments of say £400 (which is the amount I currently save a month) what would people suggest is the best mortgage for me?

herbiesjp

You should be able to find plenty of deals that allow for either limited or unlimited overpayments and that will have the same effect.

Flexible mortgage may be an option to consider with lower rates than offset deals