We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
More loan v More equity
w00519772
Posts: 1,297 Forumite
The bank will lend me up to 180K, but I like houses in the 120K-150K mark. From a financial perspective, I suppose there are two options:
1) Borrow more
2) Borrow less, but pay off the mortgage in a shorter term e.g. 15 years.
The newspapers say that house prices may rise by a fifth in four years. If I pay off more of the mortgage on a cheaper house then I guess this will compensate for the equity I would of gained from the more expensive house increasing in value compared to the cheaper house increasing in value. Is this logic correct?
The house will be a home rather than an investment, but I am still interested to know this.
1) Borrow more
2) Borrow less, but pay off the mortgage in a shorter term e.g. 15 years.
The newspapers say that house prices may rise by a fifth in four years. If I pay off more of the mortgage on a cheaper house then I guess this will compensate for the equity I would of gained from the more expensive house increasing in value compared to the cheaper house increasing in value. Is this logic correct?
The house will be a home rather than an investment, but I am still interested to know this.
0
Comments
-
If you get an offset you can change your mind.
The costs of moving can be high so think about the future will you need to expand your housing, can you go up to another level of property more space better facilities
even consider a bigger place and get lodger, they pay the extra mortgage and you get to keep the equity.
rather than look at what they will lend look at what you can afford, what does your budget say you can afford?0 -
A house should be a home first. By all means think of the future if you have plan, but buy somewhere you wwant to live above other things.0
-
Don't believe the newspapers, or indeed anyone. Nobody knows what will happen to interest rates, to house prices, or to the stock market.
Most "expert" opinions are based on not much more than drawing a straight line in the same direction as recent movement.
Make a decision based on where you'd feel most happy living, and make sure you can afford it without sacrificing too much of your normal lifestyle.0 -
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.7K Banking & Borrowing
- 253.8K Reduce Debt & Boost Income
- 454.6K Spending & Discounts
- 245.7K Work, Benefits & Business
- 601.7K Mortgages, Homes & Bills
- 177.7K Life & Family
- 259.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards