So... buying a house - what would you do?

[CH51LKY]

Hopefully I'm in the right section.

Say I had £30-35k deposit for a house.

I could save £15-£20k a year.

Would you get a mortgage for the rest of a house worth about £100k, or would you wait and buy it outright in a few years time, saving the interest of the mortgage?

Any thoughts?

Cheers

[Crafty_]

So you've got about a 30% deposit ? Do you have money for stamp duty/fees or is that coming out of your savings too ?

I'd start looking around now and see what sort of fixed rate you can get, if you're saving in excess of a grand a month don't jump for the first thing you see..

[davepoth]

Rates are below inflation, savings are also. On a 25 year mortgage you'll only be looking at £600 a month payment or thereabouts so you can afford to massively overpay (which is a good idea). So you're in a pretty good position really. If the right house comes up now, go for it, but don't rush in.

[CH51LKY]

Crafty_ said:

So you've got about a 30% deposit ? Do you have money for stamp duty/fees or is that coming out of your savings too ?

I'd start looking around now and see what sort of fixed rate you can get, if you're saving in excess of a grand a month don't jump for the first thing you see..

It would all be from the savings - it's things like stamp duty I hadn't thought of so thanks.

davepoth said:

Rates are below inflation, savings are also. On a 25 year mortgage you'll only be looking at £600 a month payment or thereabouts so you can afford to massively overpay (which is a good idea). So you're in a pretty good position really. If the right house comes up now, go for it, but don't rush in.

I'm not looking to buy quite yet, I'll be starting a new job in the summer and likely to be renting for the first 6 months/year at least.

Another thing to factor in I suppose is that I'm not ever so old, so there's the possibility of me moving around the country to suit career aspirations etc.


I'd like to think I'm generally quite clued up with the world, but mortgages are a complex business for me! Never had anything to do with them.

Thanks for your input guys and steering me on the right track!