FTB, Buying outright or Mortgage

Dan-Dan

I personally wouldnt spend all i had on a 1 bed, i would certainly have a lovely fat deposit and upscale as far as i could with a manageable mortgage

marksoton

Trigs wrote: »

Yes

Well presumably on that income your savings were not just borne from what you earn and there must have been some sort of windfall.

In which case i'd put down a large deposit and go for the mortgage option, be it offset or otherwise and retain some decent savings.

Trigs

I personally wouldnt spend all i had on a 1 bed, i would certainly have a lovely fat deposit and upscale as far as i could with a manageable mortgage

I can certainly see the sense that, especially since it would potentially save a move later on in life. I just have a fear of mortgages. Perhaps its not as complicated as reading about it online sounds?

Well presumably on that income your savings were not just borne from what you earn and there must have been some sort of windfall.
In which case i'd put down a large deposit and go for the mortgage option, be it offset or otherwise and retain some decent savings.

Its all savings, no inheritance etc. Ive worked since leaving school, lived with parents and havent spent much money other than on hobbies really.

marksoton

Trigs wrote: »

I can certainly see the sense that, especially since it would potentially save a move later on in life. I just have a fear of mortgages. Perhaps its not as complicated as reading about it online sounds?



Its all savings, no inheritance etc. Ive worked since leaving school, lived with parents and havent spent much money other than on hobbies really.

Then i take my hat off to you.

Get a decent broker and do some more research and you'll be fine. If you're forearmed mortgages really aren't that bigger deal.

Pixie5740

I think if i were in your shoes I'd try and buy a freehold property in a location I like, even if that meant taking out a mortgage, over buying a 1 bedroom leasehold property.

Mortgages needn't be scary. Just find yourself an independent mortgage broker and let them do the leg work for you.

Trigs

Oh it is a freehold property.Marked as Absolute Ownership, which i think is the same as freehold going by google? Im in scotland

getmore4less

Go bigger and at least 2 bedrooms.

at least you can have people stay(assuming you are not billy no mates ).
you have somewhere that can be a "couple" place without having to sell up.

If you fall on hard times you can let a room, with your current finances that would cover a mortgage.

Personally I think the 1 bed route is fine if you plan to keep them and rent them out they are temp places to use as homes.
If inclined you could start a letting business and build a portfolio ou have the cash to do this.

What do these 1 bed places rent for?

The offset mortgage route may be a good option especially if in the future you want to release funds for a project

getmore4less

Trigs wrote: »

Oh it is a freehold property.Marked as Absolute Ownership, which i think is the same as freehold going by google? Im in scotland

I think they can still have factors fees.

SuzieSue

How long do you intend to stay in the one bed property? Yes, you will be paying £20k extra for a 2 bed, but that is because there is much more demand for them.

I don't know about freehold flats in Scotland, but if you buy a flat I assume that you will have to pay service charges. If so, I would always spend more and buy a 2 or 3 bed house if possible.

I was in a similar position to you when I bought my first house 20 years ago in that I had lots of savings. I bought a 3 bed detached with my ex and a mortgage and am still living in it as I was able to buy him out.

Trigs

Personally I think the 1 bed route is fine if you plan to keep them and rent them out they are temp places to use as homes.
If inclined you could start a letting business and build a portfolio ou have the cash to do this.

What do these 1 bed places rent for?

Its bad enough doing this once without making it a buisness Buying bigger does make sense, to save going through it all again, though i wouldnt see myself having to move into something bigger anytime soon, but you never know i suppose.

Something similar on the same street rents for £425 a month, so if i did move in the future id consider keeping this and using it to pay a mortgage. Although if i bought bigger to begin with there would be no need... So many possibles to consider..

How long do you intend to stay in the one bed property? Yes, you will be paying £20k extra for a 2 bed, but that is because there is much more demand for them.

I don't know about freehold flats in Scotland, but if you buy a flat I assume that you will have to pay service charges. If so, I would always spend more and buy a 2 or 3 bed house if possible.

As above, i have no idea how long id be staying in it. I see no reason to move out anytime soon, but you never know.
Its a quarter villa downstairs/upstairs home. I dont think theres any fees going by home report other than maintenance of communal open space.


Glad i posted here, has gave me plenty (more) to think about, so thanks for the replies so far.