compromise to have no mortgage

Van_Girl

Personally, I'd go for the two bed with a small mortgage, then overpay on the mortgage to clear it. Particularly if you aim to be there for the long term, it makes sense, rather than up-rooting again in 5 years

I'd rather overpay, than have a shorter mortgage, because it gives you more flexibility if you suddenly find you need the cash one month, or if income drops etc 

theoretica

Moving is a pain and expensive, 5 or so more years in the 2 bed you prefer to live in is a bonus.  How big a negative is having a mortgage to you, rather than saving?

Personally, I would go for the mortgage - but it does tie you to needing to earn that money - and you aren't me!

tiger135

well i have read all the replies, first of all i am minimal and dont need a lot of space, no plans that will change anytime soon. would not want a lodger. 
where i am one bed maisonettes/flats are 180-220 and one bed houses 240ish
two bed flats are 240-260 and two bed houses around 300. 
i currently have 172k and can get a loan of 25k unsecured via my nationwide bank.

Sunsaru

Based on that info, 2 bed+ small mortgage for me.

tiger135 said:

well i have read all the replies, first of all i am minimal and dont need a lot of space, no plans that will change anytime soon. would not want a lodger. 
where i am one bed maisonettes/flats are 180-220 and one bed houses 240ish
two bed flats are 240-260 and two bed houses around 300. 
i currently have 172k and can get a loan of 25k unsecured via my nationwide bank.

SallyDucati

tiger135 said:

well i have read all the replies, first of all i am minimal and dont need a lot of space, no plans that will change anytime soon. would not want a lodger. 
where i am one bed maisonettes/flats are 180-220 and one bed houses 240ish
two bed flats are 240-260 and two bed houses around 300. 
i currently have 172k and can get a loan of 25k unsecured via my nationwide bank.

If you say you are minimal and don’t need a lot of space, what is your thinking about needing a 2 bed place in a few years?

dimbo61

Well done on saving £172,000 
So you have a huge deposit.
However I agree with others that buying a 2 bed flat with one or two bathrooms would in the long term ( say 5 years ) be a better buy.
Easier  to sell as more demand for 2 beds and you will have more room.
Consider an offset mortgage if your a saver rather  than a  spender.
Good luck in your hunt

_Penny_Dreadful

tiger135 said:

well i have read all the replies, first of all i am minimal and dont need a lot of space, no plans that will change anytime soon. would not want a lodger. 
where i am one bed maisonettes/flats are 180-220 and one bed houses 240ish
two bed flats are 240-260 and two bed houses around 300. 
i currently have 172k and can get a loan of 25k unsecured via my nationwide bank.

Clause 11(a) of the Nationwide personal loan T&C says...

The loan is for personal use only. You mustn't use your loan for business, investment or speculative purposes, as a bridging loan or a mortgage deposit or to purchase or retain an interest in land.

From reading your replies I'm not sure what it is you want.  Although you claim to be minimal and not want a lodger you do seem to want a 2-bedroom property in 5 years time.  There's nothing wrong with wanting a 2-bedroom property as a single person but if it's something you know you want is your desire to have it more compelling than your desire you be mortgage free?  Personally if I wanted a 2-bedroom property and could afford it with a 50% LTV mortgage I'd buy the 2-bedroom.  If I could further stretch, still with a relatively low LTV mortgage, to a 2-bedroom freehold property that's what I would do.  Moving is stressful and expensive, aim to do it as few times as possible.

tiger135

i dont need a two bed really its just what people say to me. i would rather a one bed with a garden, i dont need a lot of space.
the other thing that came to mind , if i lost my job, with no mortgage i would have less out goings to meet.  if i needed universe credit that could help with bills and food but it wouldnt be any use to pay a mortgage??

_Penny_Dreadful

tiger135 said:

i dont need a two bed really its just what people say to me. i would rather a one bed with a garden, i dont need a lot of space.
the other thing that came to mind , if i lost my job, with no mortgage i would have less out goings to meet.  if i needed universe credit that could help with bills and food but it wouldnt be any use to pay a mortgage??

How likely is it that you’ll end up with your income solely coming from universal credit? If it’s something you’re worried about when you have a mortgage there are insurance products that cover income protection and critical illness. However, it seems you’ve decided on a mortgage free 1-bedroom property with a garden so do it, or don’t. 

ThisIsWeird

 It seems the draw towards a 2-bed isn't as strong for you as for most folk on here. 

Perhaps let the individual flat decide for you?! Check out all the ones and twos you could afford under either method, and go for the one you just want more, that ticks more of the 'living' boxes?

A private garden would be a biggie for a lot of folk, including you, so perhaps make that a key decider?