should i or shouldn't i?

poppyoscar_3

hi

i'm just trying to get my head round what to do.

i'm in the process of buying a house in the uk having lived for 8 years in france. i came back here after the break up of my marriage, and my husband is buying me out of the french house as soon as we are divorced, which should be about three weeks from now.

i have come back here to a job which i absolutely love (first time in my life!!) but i'm on a lowish income, around £14500 gross pa. i know things are going to be fairly tight.

i desperately wanted to be mortgage free if i could, but the more i think about it (and because of the fact that the exchnge rate could alter the amount of funds i bring back from france quite dramatically) the more i'm coming round to the idea that i should have a small mortgage (say £10000-£15000) just so that i'm not in dire straits if anything goes pear-shaped. i'm thinking of something like a virgin one account which would give me plenty of flexibility, especially if i find i can manage ok.

just wondered if anyone had any thoughts on the subject, or a similar experience.

thanks
po

Dithering_Dad

In the current housing climate (re: credit crunch and talk of recession and house price crashes) I would look at renting until things settle down. This will give you time to really look around to find the perfect property and at the perfect price.

IveSeenTheLight

Dithering_Dad wrote: »

In the current housing climate (re: credit crunch and talk of recession and house price crashes) I would look at renting until things settle down. This will give you time to really look around to find the perfect property and at the perfect price.

You need to take your time and carry out a thorough research into your area and type of property. Not all areas are the same.
There is much rumour and scaremongering about price crashes but I do not believe this is applicable to all areas.

Where I live, my house has increased in price by 90% in the last three years.
I have a BTL which has been valued at 27% more than at the start of the year.
Has I rented during this time hoping the prices would drop I doubt they would have dropped to a level below what they have already increased by and I definately could not have afforded to buy the same house now.

For me, renting is a means to get by, but ultimately you are giving your money away to a landlord which you are guaranted never to see again.
As you are buying for a home, any house price increase, stagnation, or drop (I doubt there will be a crash but maybe a small drop), ultimately if you are mortgage free on your home then you have no worries.
If you are renting, hoping of a house price valuation drop, then I believe you are gambling (paying rent) that the house price drop will outweigh the rent you have paid / are paying. What happens if you rent and the prices only stagnate or still climb even at a smaller percentage increase?

Make sure you are comfortable, but as soon as you are mortgage free, a massive financial burden is eased from your shoulders.

good luck with whatever you decide

poppyoscar_3

things are hotting up!

after lots of reflection i have taken the plunge and put down the reservation fee (negotiated it into being refundable!!!) on a new property which will be ready in december. i think i got a good deal - it's the end of a 'phase' so £20000 worth of incentives including £14000 off the price.:D

now i just have to hope the exchange rate and fees for transferring the cash aren't too hideous..........................

i'm working on the theory that i can't actually afford to rent anything decent here without touching my capital (a one-bed flat would take half my income:eek: ) and if i do that it will blow any chance of a mortgage free future, so would rather get my bricks and mortar now even if it means a bit of dfw style living for a while.

so what about a virgin one account if i do need a small mortgage? any views?

thanks in advance! it so helps having advice from others when you're going it alone!!:o