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Good value freeview?

Hi!
I was hoping someone might be able to give me a little advice on the cheapest/best value way of setting up some decent tv watching. Here is the situation, any tips would be greatly appreciated :)
Myself, my partner and 6yo son are just moving in together and I'm looking to set up a TV on a budget. We're not necessarily big watchers, so it seems silly to invest hundreds of pounds (especially as we are currently spending on furniture etc and neither of us are big earners) but it would be nice to have the option, and when we do watch it tends to be the more expensive channels that has the shows we want. I also aboslutely want to avoid subscriptions as we are going to have enough monthly outgoings for the foreseeable as it is.
We are moving into a friends house, taking 2 rooms. She already has an internet/phone line so there is no appeal in getting packages with that for us.
We have a basic hdmi monitor, that is capable of hooking up to boxes to turn it into a tv. I'm hoping to just use that to save money as we already have it gathering dust.
Amazon deal of the day today is a Now TV set with 6months entertainment pass for £18. I've bought that (looks like a real bargain!).
I understand that NowTV can essentially turn a normal tv into a smart TV (provide you with iplayer, spotify etc etc) as well as providing selected shows from sky channels. This looks like it will satisfy those needs well and i'm very happy with it. It will also give the other half the option to pay for the odd sporty day so it'll keep him happy haha.
However, we will still need freeview channels, and I would like the pause/rewind facilities. I would appreciate any advice on what options I may have not considered? I also still don't really understand how freeview works.

The BT YouView Box, for example, is on amazon for around £40 and says it will give us the freeview channels plus. But then the other Youview box costs in the £100's and I can't work out the difference? What am I missing? Will the £40 box do the job or is it an add on to something I don't have?

Sorry for the long explanation and dopey questions! Very new to all of this so just trying to get my head around it!

Many thanks in advance
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