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Options
EasyToAssemble01
Posts: 122 Forumite
As someone who delayed the idea of homeowning until now (age 40), I've decided I want to work toward getting out of renting - ie. "dead money" I can't get back - and buying my own property. Although I am not in debt, my savings (everything I have) are fairly modest at £9000 (with an aim to keep saving more), and I feel this is pocket-change when it comes to a deposit or mortgage.
I've just read that LISA mortgages cut-off at 40, so that option's out of the picture (I did look into LISA's last year, but didn't plan to apply there and then). I also have the looming prospect of trying to pay off that mortgage before retirement. I am in full-time work, but with things as they presently are - rising house prices vs dwindling job security - getting a mortgage almost seems a bit of a gamble. I've even considered the prospect of a mobile home or something else that won't require such an upfront commitment. It's a shame trailer-parks aren't more common in the UK, as that would be a viable option.
At this point, I'm stuck on my options. I need "pre-mortgage" advice to steer me toward choosing a housing option that matches my needs. Is this something i would need to get from a Financial Advisor? Or can a Mortgage Adviser help, even though I am not yet ready to apply for one (I assumed I would need to be at the stage of applying)?
I've just read that LISA mortgages cut-off at 40, so that option's out of the picture (I did look into LISA's last year, but didn't plan to apply there and then). I also have the looming prospect of trying to pay off that mortgage before retirement. I am in full-time work, but with things as they presently are - rising house prices vs dwindling job security - getting a mortgage almost seems a bit of a gamble. I've even considered the prospect of a mobile home or something else that won't require such an upfront commitment. It's a shame trailer-parks aren't more common in the UK, as that would be a viable option.
At this point, I'm stuck on my options. I need "pre-mortgage" advice to steer me toward choosing a housing option that matches my needs. Is this something i would need to get from a Financial Advisor? Or can a Mortgage Adviser help, even though I am not yet ready to apply for one (I assumed I would need to be at the stage of applying)?
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Comments
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Basically you will need a 10% deposit plus a few grand for legal fees and moving costs.
The LISA is not a mortgage, it's a savings account, if you paid in £4k a year you would have got a £1k bonus per year to use towards a house purchase. It did need to be opened before a 40th birthday though. The £4k is a maximum amount so you have only missed out on £2250 of bonus so far.
Have a look at rightmove to see what sort of prices the type of housing you would like would be and then put up some numbers on here (house price, your income etc) and then you can get some advice on how achievable it is.
You can buy a mobile home for a few grand but buying a plot of land with planning permission to park it on is not going to happen. There are plenty of holiday park type places about that sell homes permently but lenders do not like giving mortgages on them so you would need a lot more deposit to buy one of those.2 -
Mobile homes are not that much cheaper than houses, and usually only for over 50's.
£9,000 deposit is going to get you a max property value of £90,000 (provided you earn at least £20k. Are houses in the 90k price bracket ones you would be willing to live in? You have over 25 years to pay it off, so that's not a problem.1 -
EasyToAssemble01 said:...renting - ie. "dead money" I can't get back
Not this again...
It's not "dead money". It's paying for a service. Accommodation. Zero-hassle flexible accommodation, with no unexpected costs.2 -
AdrianC said:EasyToAssemble01 said:...renting - ie. "dead money" I can't get back
Not this again...
It's not "dead money". It's paying for a service. Accommodation. Zero-hassle flexible accommodation, with no unexpected costs.
I suggest to get married to someone with similar deposit and also may enable you to save more. It can be much easier to achieve based on two incomes.0 -
AdrianC said:EasyToAssemble01 said:...renting - ie. "dead money" I can't get back
Not this again...
It's not "dead money". It's paying for a service. Accommodation. Zero-hassle flexible accommodation, with no unexpected costs.
When I was renting for years I just didn’t like knowing I was paying my landlords mortgage, it gave me a kick up the back side to get on the property ladder. But once owning a house you have more worry, less flexibility, other costs such as mortgage and repairs. Everyone has different needs and views.
OP you don’t necessarily need a mortgage advisor as you can use the internet yourself, but it may not hurt to see one to kick it all off.1 -
Mickygg said:AdrianC said:EasyToAssemble01 said:...renting - ie. "dead money" I can't get back
Not this again...
It's not "dead money". It's paying for a service. Accommodation. Zero-hassle flexible accommodation, with no unexpected costs.
Nobody says leasing a car instead of buying one is "dead money".0 -
AdrianC said:Even then, you're choosing the flexibility of renting.
Nobody says leasing a car instead of buying one is "dead money".0 -
bolwin1 said:AdrianC said:Even then, you're choosing the flexibility of renting.0
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AdrianC said:bolwin1 said:AdrianC said:Even then, you're choosing the flexibility of renting.0
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AdrianC said:bolwin1 said:AdrianC said:Even then, you're choosing the flexibility of renting."It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP2
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