Tough choice I cant decide, but need to get a mortage soon

dmo84 · 12 January 2018 at 9:40PM

Hi all,

My head is hurting at the moment, I am 33, looking to buy first property, I am on £45k salary, no dependants, im single, have around £23-24k ish in savings. I want to buy a 2 bed house of some sort around the south wales area.

My goal was to buy a property on a normal fixed rate mortgage and put down a 10% deposit on a £130-£140k property if it was on a normal mortgage, or £150-£160 maybe £170 if was on help to buy?. at the moment I am stuck between knowing mortgage rates/house prices are going to go up in 2018 (I can already see it happening), at the same time as I need to counter in things like furnishing etc, any other rates and fee's I have to pay. I don't want to wipe my savings away.

I need to try and come up with a 6 month plan to buy, I could either stick to normal fixed rate mortgage, or go down the route of help to buy which is what I was trying to avoid.

I don't fully understand help to buy and seems there is a catch somewhere and could end up worse, after getting mortgage I want to be saving for enjoyment and retirement not putting some away to pay off a loan, but at the same time I want to be able to make money of the property aswel, another thing is the fact that are restricted a little, if you put down more than 5% do you get a better deal?

I fear that if I dont put down on something soon, prices are going to rise and I will end up shooting myself in the foot but at the same time I am close on getting more of a buffer in savings and being able to put down on a normal fixed rate mortgage, if I wa going to go help to buy it would have to be an easy 5 year plan maybe that wont leave me out of pocket but wont mean I have to save to pay off the loan.

So, what do I do? normal fixed rate or help to buy on a new build?

amnblog · 12 January 2018 at 10:24PM

Many people consider new builds are poor value for money and sometimes the prices are quite agressive. Against that you have minimal upkeep costs and energy bills will be on the floor compared to a house even 30 years old.

A sensible comparison can only really be made once you have suitable alternate properties in mind.

What has your Broker said? Your Broker is the best source to discuss pros and cons.

ceh209 · 13 January 2018 at 12:41PM

Where in South Wales? The closer to the bridge, the more property prices are going to go up this year (I'm in Bristol and considered moving over the bridge, but decided against it in the end)

Yes if you put down 10% you will get a better deal than 5%

dmo84 · 13 January 2018 at 10:00PM

I would be looking at buying around Cardiff East area or down towards the new builds by celtic springs / tradegar house in newport. I have not decided on area yet

Yeh I used to live on the Welsh side of the bridge years ago and the property prices have gone up. I am hoping it doesnt effect towards nearer Cardiff way

So put down 10% on help to buy or 10% on normal mortgage?

I want to find if possible a property and mortgage deal that isn't restricted (IE if I need to switch jobs and need to let out). But at the same time I don't want to wipe away a good chunk of my savings on the deposit.

ViolaLass · 13 January 2018 at 10:08PM

dmo84 wrote: »

I want to find if possible a property and mortgage deal that isn't restricted (IE if I need to switch jobs and need to let out). But at the same time I don't want to wipe away a good chunk of my savings on the deposit.

Why the fear? You'd still have about several thousand left over after the deposit, fees etc.

Thrugelmir · 13 January 2018 at 10:48PM

ceh209 wrote: »

The closer to the bridge, the more property prices are going to go up this year (I'm in Bristol and considered moving over the bridge, but decided against it in the end)

Severn Bridge toll has been reduced and is being scrapped at the end of 2018.

Tough choice I cant decide, but need to get a mortage soon

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