want to get out of parents

MFWannabe

Have you crunched the numbers in a mortgage calculator? 70 - 110k mortgage is not a high mortgage especially compared to rents 
You’re far luckier than a lot of people with that amount of deposit 
But it all depends how much you want your
own place or not 🤷‍♀️

Emily_Joy

tiger135 said:

170 sounds a good deposit but for a single person it still means a big mortgage when properties are 240-280 give or take. Someone asked about rentals well i take home 1800 a month and some small flats only one beds are on the market for 1100-1300 within a couple of miles of work.
5 miles out they are 9-950. so no less than 50% take home wage.

Then you will be happy to learn that  with deposit 170K for a property 260K and 25 years mortgage, the mortgage payments will be less than £700 per month. It sounds like you are simply horrified by the very idea of owing money to someone, never mind a sum that you cannot return tomorrow. Have you ever had purchase credit cards?

tiger135

i have one small credit card with 500 and yes i dont like owing people. 
but i understand a mortgage is different.
i guess do i buy right now and have a light through the tunnel to aim at.
or buy some time as a stepping stone maybe rent an air bnb or spare room whole property for 6 months ?

mi-key

tiger135 said:

i have one small credit card with 500 and yes i dont like owing people. 
but i understand a mortgage is different.
i guess do i buy right now and have a light through the tunnel to aim at.
or buy some time as a stepping stone maybe rent an air bnb or spare room whole property for 6 months ?

A mortgage shouldn't be viewed as a debt. It is a living expense, the same as paying rent or your gas bill. But the benefit of a mortgage is it is often cheaper, and at the end of it you actually own something worth a lot of money. Also when you own your own place you can do whatever you want to it, and you have the security of staying there as long as you like.

Given a choice between buying or renting, I would always buy.

Why waste money renting somewhere for 6 months? 

Emily_Joy

tiger135 said:

i have one small credit card with 500 and yes i dont like owing people. 
but i understand a mortgage is different.
i guess do i buy right now and have a light through the tunnel to aim at.
or buy some time as a stepping stone maybe rent an air bnb or spare room whole property for 6 months ?

Since the main problem is that you don't like owing people money, renting something is not likely to help addressing this issue.

So, if we do a simple calculation (by the way last time I checked Henley building society had good rates for low LTV). If you put £170K deposit and buy a place for £270K, that means you owe £100K. (Nice round number). Now, assuming interest rate 4%, this means that  in one year you would own nearly £104K.  But, if you manage to pay £10K (and this shouldn't be a problem with your income) your mortgage is down and you actually owe £94K in one year's time. Now, add 4% interest rate to that... this takes us roughly to £98K. Repaying £10K will get it down to £88K (by the end of the second year).

Interest is calculated daily, so in fact it will be slightly better than that. But you get an idea.

YoungBlueEyes

I'd keep some back so you have cash in the bank should something happen. It's alright thinking your job is secure and it'll all be fine, but sometimes life happens at you and the money will give you a bit of peace.

We moved recently, himself took a week off work so we could get unpacked and settled. He went back to work on the Monday, Tuesday morning his boss rings me - they're on their way to hospital cos he caught his hand in a table saw. They paid him for a wee while but sick pay is nowt to pay a mortgage with. We were so pleased we hadn't maxed ourselves out and had kept some back, you really don't know what's around the corner.

I say this often, but it bears repeating - you're better looking at it than for it.

Sarah1Mitty2

Emily_Joy said:

tiger135 said:

170 sounds a good deposit but for a single person it still means a big mortgage when properties are 240-280 give or take. Someone asked about rentals well i take home 1800 a month and some small flats only one beds are on the market for 1100-1300 within a couple of miles of work.
5 miles out they are 9-950. so no less than 50% take home wage.

Then you will be happy to learn that  with deposit 170K for a property 260K and 25 years mortgage, the mortgage payments will be less than £700 per month. It sounds like you are simply horrified by the very idea of owing money to someone, never mind a sum that you cannot return tomorrow. Have you ever had purchase credit cards?

How much are the payments for the 99% of ordinary buyers who don`t have nearly two thirds of the value as a deposit?

Sarah1Mitty2

mi-key said:

tiger135 said:

i have one small credit card with 500 and yes i dont like owing people. 
but i understand a mortgage is different.
i guess do i buy right now and have a light through the tunnel to aim at.
or buy some time as a stepping stone maybe rent an air bnb or spare room whole property for 6 months ?

A mortgage shouldn't be viewed as a debt. It is a living expense, the same as paying rent or your gas bill. But the benefit of a mortgage is it is often cheaper, and at the end of it you actually own something worth a lot of money. Also when you own your own place you can do whatever you want to it, and you have the security of staying there as long as you like.

Given a choice between buying or renting, I would always buy.

Why waste money renting somewhere for 6 months? 

Unless the value drops, say because interest rates went up and stayed high for example, a mortgage is most definitely a debt, even if you lose the house you will still be pursued for the mortgage debt, with a rental you can leave anytime owing nothing.

Sarah1Mitty2

tiger135 said:

thanks i was wondering about lodging elsewhere but feel a sense of guilt that they might think id rather live with strangers than them. its only because im getting interest on my savings and could double that if i fixed for a year or two. 

You should do that and then wait for higher interest rates to do what they are designed to do, bring prices down, you are going to get so much more choice at better prices by waiting, don`t throw all your savings into a property now and risk not being able to sell out if the market freezes up.

Martico

tiger135 said:

170 sounds a good deposit but for a single person it still means a big mortgage when properties are 240-280 give or take. 
someone asked about rentals well i take home 1800 a month and some small flats only one beds are on the market for 1100-1300 within a couple of miles of work.
5 miles out they are 9-950. so no less than 50% take home wage.

First up, I would think what you are comfortable paying monthly for accommodation.
Then, use the mortgage calculator on this site to check what kind of mortgage level that would mean. Try with different interest rates, to stress test in case of higher rates in two years. For now, given that you'd have a healthy LTV ratio, assume close to the best rates going, say 4%. And stress test at 6% or 7%.
After that, consider what cash you'd like to be left with as a buffer + moving costs.
And you should be left with a value of the kind of property you'd need to be looking at. Would you be happy owning such a place?