compromise to have no mortgage

MFWannabe

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??

If a one bed with a garden is what YOU want then that is what you should go for
its not up to anyone else and no one else is buying it! 

If you lost your job how quickly would you get another one?

Also if you went for a one bed house and put down 150k or 160k that keeps some money back for emergency fund without your mortgage being too big and if you had a small mortgage would you still be able to save? 

Have you put the numbers into a mortgage calculator to see what repayments would be? Plus you can make overpayments to bring the term down 
If you keep thinking what ifs then you never do anything in life 🤷‍♀️

MFWannabe

Play around with the mortgage calculator, it may help you make your mind up: 
https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/

A mortgage of 80k over 20 years is £510 a month, overpay and you can bring the term down considerably. Also play around with the term to see what payments would be 

Also mortgage payment would be considerably less than rent I guess (your last post was reference renting) 

jonnydeppiwish!

I’d be going for the 2 bed house tbh honest. Small mortgage, plenty of time to pay back

tiger135

the idea of no mortgage is so attractive, if it means a one bed flat for now then perhaps that would provide motivation to make a 5 year plan for the next property and time to decide exactly what i want long term ( i havent had my own place properly before so never really know how i live and what i want). with no mortgage i could split my income of 2k per month 50/50 and have 1k for bills and living and another 1k saving for the next property. over 5 years that would be 60k and no interest to be paid. 
  

MFWannabe

tiger135 said:

the idea of no mortgage is so attractive, if it means a one bed flat for now then perhaps that would provide motivation to make a 5 year plan for the next property and time to decide exactly what i want long term ( i havent had my own place properly before so never really know how i live and what i want). with no mortgage i could split my income of 2k per month 50/50 and have 1k for bills and living and another 1k saving for the next property. over 5 years that would be 60k and no interest to be paid. 
  

Then that’s what you should do! Stop listening to other people around you; it’s not their money etc 
Do what you feel comfortable doing 
Are there properties in your mortgage free budget you could see yourself living in? 

Yorkie1

tiger135 said:

the idea of no mortgage is so attractive, if it means a one bed flat for now then perhaps that would provide motivation to make a 5 year plan for the next property and time to decide exactly what i want long term ( i havent had my own place properly before so never really know how i live and what i want). with no mortgage i could split my income of 2k per month 50/50 and have 1k for bills and living and another 1k saving for the next property. over 5 years that would be 60k and no interest to be paid. 
  

If you have £2K per month income, and £1K is going on bills, then it's likely that you won't reach £1K savings per month - you are likely to have other expenditure, whether planned or unplanned. Even if just going on holiday.

But even if you do save £60K over 5 years, how can you know that that will be sufficient to bridge the gap between a 1-bed and and 2-bed property? At present, it would be sufficient, but 5 years is long enough for house prices to go up and leave the gap between the two beyond your reach.

This is not to say that you must go for the 2-bed, but it's worth doing a reality check of where you will be after 5 years' saving, and what you will think / feel / do, if your savings at that point aren't enough to stretch up.

tiger135

the 1k was for everything all bills and spending. and thanks mfwannabee i am going to search the market and see if i can find something in my price range.