use all savings for mortgage?

pinkteapot

Well done - you've got an amazing amount in savings for someone coming out of uni and it's great you can leave work now and just focus on final exams/coursework.

With a steady three years in that job it'll look great on your CV anyway for graduate recruitment - real world work experience is what employers want.

dimbo61

Take a deep breath and finish your exams.
Then go on holiday for a week or two in the sunshine.
Enjoy your graduation day and start looking for a job.
I would be looking at a two bed flat or small house. You may need the room and can always find a lodger.

goodwithsaving

Why not wait until you have got a job. Mortgage companies like a steady employment history and while I know it's hard to wait when you have deposit money, you need to know (a) how much you'll be earning and (b) how quickly you will be able to replenish savings you spend on the purchase.

Perhaps the best thing to do is take a break, celebrate your achievement (of graduating let alone graduating with a good amount of money in the bank), find a job and then think about buying a house. If you still want to.

Point (b) might help you figure out how much you can afford to put in and the time taken to rebuild a 'float'.

lovinituk

Fraggy_Muffin wrote: »

I plan on buying a 1 bed in the local market there are some really nice ones for 50-60k.

Blimey! You'd be lucky to get a mobile home for that down here! Even some beach huts sell for more than that here :eek:

pinkteapot

dimbo61 wrote: »

I would be looking at a two bed flat or small house. You may need the room and can always find a lodger.

This is a really good idea. 1-beds can be tricky to sell as they have a limited market. You're obviously a good saver so if you can live at home for a few more years and then buy a 2-bed instead, I'd recommend doing so.

The place will last you longer as it will have more space. There are costs to buying/selling so you don't want to buy somewhere that will only last a couple of year. You can then also rent out the spare room if need be.

This is assuming prices aren't rising sharply in your area (in which case it's better to buy sooner), and that you'd be able to work towards getting a 2-bed in a timeframe that you're happy with.

ps I don't know how tied to your area you are by family, friends, love of it, etc., but you could possibly end up wanting to move for work anyway?

serious_saver

Since you'll be straight out of uni you might want to see where work takes you first before buying. You'll need an income before you get a mortgage anyway.

If you do buy I recommend keeping some emergency money back.

When we bought our house two years ago we had enough for a 40% deposit so we planned to get a deal with a 60% LTV. The only deal we could get was actually one that allowed for up to 70% LTV so we thought about it and decided that we may as well keep some emergency money back. The house looked OK but once we'd been living there a few months we realised that the bathroom was a disaster (dangerous electrics, leaky bathtub, tiles coming away from the wall etc). We were VERY glad we kept some money back!

Good luck and congratulations on saving so much money!