What should we do? Can't decide

veggielove

Thanks everyone we have alot to think about. 

[Deleted User]

tooldle said:

This sounds a massive gamble based on you saying there is currently no spare cash or savings. Yes you would make a small saving on rent against the projected mortgage payment, but some or all of that saving would be eaten up by the extra commute, extra council tax and additional bills (building insurance, boiler service etc)  leaving very little wriggle room. I wouldn't risk it on such a tiny margin. A minor blip i.e. mortgage rate increase, excess to pay on an insurance claim, a minor maintenance issue in the house etc would stress you financially and may force a default.

However, equally if there's no spare cash or savings then it's very unlikely OP would be able to save enough for a deposit without it taking many many years so in some ways it's a gamble either way but I do get what you're saying that there are increased responsibilities with home ownership

tooldle

Deleted_User said:

tooldle said:

This sounds a massive gamble based on you saying there is currently no spare cash or savings. Yes you would make a small saving on rent against the projected mortgage payment, but some or all of that saving would be eaten up by the extra commute, extra council tax and additional bills (building insurance, boiler service etc)  leaving very little wriggle room. I wouldn't risk it on such a tiny margin. A minor blip i.e. mortgage rate increase, excess to pay on an insurance claim, a minor maintenance issue in the house etc would stress you financially and may force a default.

However, equally if there's no spare cash or savings then it's very unlikely OP would be able to save enough for a deposit without it taking many many years so in some ways it's a gamble either way but I do get what you're saying that there are increased responsibilities with home ownership

And this is why we have social housing. OP is I believe in a private rental. Owning a property is not realistically affordable to everyone. I’ve known people whose margins were very tight when they bought and, sadly they ended up being repossessed and facing the consequences of a significant debt. Even worse, for some  of these people they lost their home which had been purchased under right to buy. Such a waste, both of secure housing and financial security. The OP says they are nervous/worried and as a family have a history of bad financial decisions. 

Whatever the OP decides, I hope it works out well for them. 

veggielove

tooldle said:

Deleted_User said:

tooldle said:

This sounds a massive gamble based on you saying there is currently no spare cash or savings. Yes you would make a small saving on rent against the projected mortgage payment, but some or all of that saving would be eaten up by the extra commute, extra council tax and additional bills (building insurance, boiler service etc)  leaving very little wriggle room. I wouldn't risk it on such a tiny margin. A minor blip i.e. mortgage rate increase, excess to pay on an insurance claim, a minor maintenance issue in the house etc would stress you financially and may force a default.

However, equally if there's no spare cash or savings then it's very unlikely OP would be able to save enough for a deposit without it taking many many years so in some ways it's a gamble either way but I do get what you're saying that there are increased responsibilities with home ownership

And this is why we have social housing. OP is I believe in a private rental. Owning a property is not realistically affordable to everyone. I’ve known people whose margins were very tight when they bought and, sadly they ended up being repossessed and facing the consequences of a significant debt. Even worse, for some  of these people they lost their home which had been purchased under right to buy. Such a waste, both of secure housing and financial security. The OP says they are nervous/worried and as a family have a history of bad financial decisions. 

Whatever the OP decides, I hope it works out well for them. 

Thank you. Yes we are in private renting sector. Appreciate the advice. Your points are very valid.