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Best strategy for getting into the ladder?

WorriedBorrower
WorriedBorrower Posts: 17 Forumite
edited 3 December 2013 at 8:03PM in Mortgages & endowments
Hi all,

As first time buyer and contractor, I was cautious in borrowing too much. I was given 440k credit, but I've taken 62% of that, 276K. I was concerned about the potential interest rates increases, as the only way now is up.

Now, sometimes I think I should have been more aggressive in borrowing.

What do you guys think it is a good approach for a first time buyer:

a) be a bit conservative and buy a starter home (325K, semi 3 bed) and wait some two, three years to move up in the ladder.

b) get all you can borrow and buy towards a dream home.

All feedback will be much appreciated by this first time buyer.

Cheers all!

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Borrow what you can afford to repay. If moving up the ladder is in your plans. Then overpay the mortgage. This way you'll build equity and won't be impacted so greatly by any increase in interest rates.
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