100% Cash - how do I plan my mortgage/finances

funkey_monkey

funkey_monkey wrote: »

Looking to buy a place for £150k to £170k. Savings of £250k. Approx £60k of this is in ISA's. £10k in shares. Remainder in crap savings accounts.

Looking at places in the region now of £170k - £190k. Am I mad as a single person approaching 40 to consider this amount?

Bufger

funkey_monkey wrote: »

Looking at places in the region now of £170k - £190k. Am I mad as a single person approaching 40 to consider this amount?

I'm 31 and I'm looking at buying between £250k and £300k. It's only mad if you can't afford it. Age is irrelevant if you don't need a mortgage

amnblog

Nothing you have said here suggests you are a 'natural investor'.


Buying your property cash and saving any excess income sounds like your style.


Would you really be comfortable if you placed money in investments that dropped in value?

getmore4less

If you buy with cash it will be harder to mortgage later.

offset once set up costs nothing if 100% offset(exit fees).

Depending on the product fees and any free things like solicitors and other factors you may be able to get the mortgage set up for nothing upwards.

ie. it may be cheaper to take out the mortgage and go 100% offset(don't tell them) than buy outright.

The advantage of the offset is you can make the invesment decisions at your leasure and use the offset for cash flow.

eg. you could buy your ISA S&S each year and top up the offset throughout the year from income.

The offset gives a lot of flexibility for little to no cost.

if you do go this route max out the term but review the rates on offer in deciding how much to borrow.