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£200k inheritance, property ladder or not?

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Comments

  • jimbog
    jimbog Posts: 2,253 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Buy a property, but consider too maintenance costs and any rises in interest rates. Rents will only ever be going up and you really don't want to be dependent on the whim of a landlord when retired
    Gather ye rosebuds while ye may
  • Ladders go both up and down.  
  • Grizebeck
    Grizebeck Posts: 3,967 Forumite
    1,000 Posts Second Anniversary Name Dropper Photogenic
    but depends where in the country you are as well.....
  • Grizebeck
    Grizebeck Posts: 3,967 Forumite
    1,000 Posts Second Anniversary Name Dropper Photogenic
    Ladders go both up and down.  
    yes or is that snakes and ladders
  • Albermarle
    Albermarle Posts: 27,754 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    I would buy a property but would make sure at the same time I was contributing a reasonable amount to any workplace pension I had for the future.
  • jem1276
    jem1276 Posts: 401 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks everyone for your replies! The majority seem to say buy, which is what we expected. It was great to read the reasons too.

    We are currently paying £1400 a month to rent in Devon. We've looked at mortgage options with putting down a deposit of £150k, which leaves us with monthly mortgage repayments of between £1,800 and £2,200 a month, depending on the house price. So not cheaper than renting and quite a stretch each month, plus pressure to stay in the job that provides the salary this mortgage would be based on. If I had to take a drop in wages...scary.

    So I guess the options are to put in the whole £200k to bring down the mortgage repayments, or compromise on the house and go smaller/less desirable area. At 49, I doubt a mortgage lender would allow the length of the loan to increase to reduce payments that way.  

  • RAS
    RAS Posts: 35,483 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Have you been to a mortgage advisor as suggested, or just looked at the deals available on-line? 
    If you've have not made a mistake, you've made nothing
  • Grizebeck
    Grizebeck Posts: 3,967 Forumite
    1,000 Posts Second Anniversary Name Dropper Photogenic
    Or move across the channel to wales and buy a 2 bed terrace for 90k....
  • jem1276
    jem1276 Posts: 401 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    RAS said:
    Have you been to a mortgage advisor as suggested, or just looked at the deals available on-line? 
    We spoke with a mortgage advisor in July and got some numbers, which is where the figures in my above post come from. We have another appointment with them on Thursday and will explore the "whole 200k deposit" option, plus any chance of extending the loan period. 

    I don't know if certain lenders are more recommended for older mortgage applicants...guess that's another question for them. 
  • FreeBear
    FreeBear Posts: 18,163 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    jem1276 said:
    RAS said:
    Have you been to a mortgage advisor as suggested, or just looked at the deals available on-line? 
    We spoke with a mortgage advisor in July and got some numbers, which is where the figures in my above post come from. We have another appointment with them on Thursday and will explore the "whole 200k deposit" option, plus any chance of extending the loan period.
    If you go for the "whole £200K", you won't want to be buying an older property or one that requires renovating. Even if you go for a newer property, make sure you have a good chunk of cash in reserve to cover repairs & maintenance.

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