40k available against mortgage - please advise

HOORA

Hello to all.

I will have 40 k cash available to me in the new year and I really want to buy a home. I earn 26.5k basic with other earnings making it up to 37k this year (although most years it would be 30-32 k) .

My question is this - should I just offset this 40 against a mortgage Im looking to buy a property currently in the region of 130k so a mortgage of 90k which I could afford.

Or,

should I invest in a property in the North of England or Scotland where Ive seen properties which are rentable for under 50k, and then use this property as equity and then get a mortgage for about 120k which I could afford and put down a 10 per cent deposit.

Advice welcome. especially with regard to mortgages using other property as security.

many thanks.

rrwfotr

You might be best to wait a while mate seems house prices are cooling, you might be best renting for a bit you most prob pick up a bargin. next year. Wack you savings into a savings account. 40 k most prob give you £200 a month in intrest a month icici bank do a good rate at 6.40 at the moment.

Dan_Collins_2

We are hearing different things each day. The firmest one today is a 10% drop in prices next year. They way business is going in the estate agents that use me then they will have to!

Also the buy to let market is not as great as it was, I would maybe keep an eye in the area you are looking to buy!