Is a mortgage a good idea or should I forget it
Comments
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How much would a spacious 1 bed flat similar to what you are living in cost?
you might want to look at what you could get with HTB as well.
What rate/term was the broker using for your examples of £650/£810
£160k paying £650pm/£810pm over 25 and 30 years the rates and interest pm(at the start).
1.7%/3.6% 25 years £230pm
2.7%/4.5% 30 years £360pm
Renting the money to buy somewhere is cheaper than your £550 to rent somewhere.
remember the capital component of the mortgage is more like saving than rent so even though the total is more than the rent you are saving(creating equity) reducing the interest(rent) component.0 -
Insurance can be as little as £15 a month for buildings insurance (possible even less). That is the only requirement.
You can then take out any of the following:
Contents insurance,
Life insurance,
Critical illness,
PHI/Income Protection
Unemplyment
Of the above, I have Buildings and contents insurance and PHI. My PHI insurance pays out enough to cover my bills. I could have taken more cover out if I wanted to as PHI is based on your income, but I am happy with the amount of cover I have.
I should really do life insurance but I never get round to it. I also have a cracking pension from when I worked for a bank that will pay out something to my Mrs, although it is not ideal.
The cost of all of those will vary, there is a saying that some cover is better than none. So if you only want to spend say £30 a month, then you might be able to get say £500 a month income protection insurance say £50k life insurance. Not ideal, but better than nothing if you ever find yourself in a position to need to claim. Not many people can afford to fully insure themselves.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Getmore4less - that's a brilliant way to think about a mortgage, thank you! I think a mortgage is the way forward. We have a viewing this evening on a 3 bed terrace at 181000, will see how that goes...
By the way, is a survey essential?
How much reduction on the asking price should I attempt when we find a good place?
Thanks ACG, £30 a month doesn't seem too bad.0 -
MortgageSeeker2018 wrote: »How much reduction on the asking price should I attempt when we find a good place?
That depends on how overpriced you think it is and on the seller's circumstances.0 -
It was recently reduced, so if it seems OK then I may put in an offer for slightly less than asking price, depending on condition etc. as you say. If it has been reduced, it could be that the seller is eager to sell and may accept a lower offer?
There is someone else going to see it this afternoon as well, according to the agent.0 -
Im not saying you can get everything for £30, it was just an example figure. But if that is your budget, that is your budget and it is down to the broker to work to that.
Personally, I would rather the customer take a £30 a month policy they can afford and will keep than a £100 policy that will get cancelled a month later. Also some brokers will ask you to sign a document that says if you cancel the policy within 2-4 years, you will have to pay them any commission which they have to re-pay to the insurer. So always best to be open and honest with the broker and check what you are signing.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
ON right move do the "more like this test".
add in those marked as sold and then do paper comparisons to see what looks like good value against the once people are offering on.
Think about what you are looking for from a property.
what things are good/bad about where you live.
If brave move over the renting/buying/selling board and post a link to some of the options in the area you are buying to get some feedback.0 -
In terms of the timeline to moving in, is this the right order: view a property, make an offer, offer accepted, go to broker, get mortgage, go to solicitor, get survey, exchange contracts?0
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Get your broker on board and solicitors first.
Neither need to do any work until you have found a property and had yoru offer accepted, but I would always rather speak to a customer and have a factfind in place so it is all a little more relaxed rather than have to do a factfind after your offer has been accepted and then do the research.
Estate Agents are quite pushy, so any delays and they are a nightmare.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
What about getting a leasehold on a flat? Would this be such a bad thing if it enables us to get onto the property ladder?0
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