Quick Dilema any sensible ideas?

Luker_2

Ok

Heres our situation,

Theres me the Mrs and our son we sold a property 2 years ago and are now renting.

Why dead money I hear you cry. Well our house is very nice and its only £240 a month plus some of the interest of our money pays the rent!

Theres not alot of pressure if we loose jobs etc because at least its not £1000mth. Also we have a better life at the mo than when we did when we were mortgated to the hilt. Also I nearly got divorced as I couldnt afford a buttie when we went out for the day (True) because my wages were quite low.

Circumstances have now changed I have a better job and we have some savings.

A detatched bungalow has come up near where we used to live and the sellers have just dropped from £157000 to £130000 which for that area is a bit of a steal.

We are unsure if to grab it because all we can find at the moment looking at a £105000 mortgage is £610mth (£20000 deposit)

I know its better in property etc but we were looking to ask 2 questions:

1) Do you think we would be better waiting for this supposed market crash?
2) If we get a fixed mortgage would this be best as I dont trust variable incase it goes up again. But on the other hand I dont want to be fixed at 5.80% if it fall to say 4% again?

Or I guess the big question is would you guys keep renting an wait?

Thanks,

L.

MortgageMamma

you need to tell us more about your financial circumstances now, how much do you earn whats the deposit etc etc

dixie_dean_2

If you have a nice house for £240 per month stick with it. It's highly unlikley prices are going to rise dramatically and if you're happy as you are now probably isn't the best time to enter the housing market.

MortgageMamma

Just a little note to add to that, I rent, I probably pay as much as a mortgage would cost me but thats besides the point i do it for flexiblity and that flexibility has just enabled me to relocate 320 miles south without worrying about selling. home ownership is not the be all and end all. if you have a long term let and are comfy and happy where you are then thats what counts.

Luker_2

What are your thoughts on buying to rent then?

Is the renting market ok at the moment if I keep say £17000 back in my savings incase its empty do you think that would be worth doing?

I understand the average rent in the area is about £550 and the mortgage we priced up is £572 over 35 years.

Its just I need to do something with the money instead of dwindling it away and low interest. Wouldnt mind moving but I must admit I am happy here and its less pressure.

Appreciate the help,

L.

MortgageMamma

i dont think buy to let is a good idea if the rent wont cover the mortgage, unless of course that was the capital repayment figure you quoted rather than interest only

your decision should be based upon what you can afford to pay and how you can handle the responsiblity of home ownship financially. if its going to stop you havign a nice life its not worth it.