Shings

Right...

What would YOU do .....

I am looking at a property tomorrow fingers crossed etc I may be interested, in terms of mortgage these are my options... ( in my opinion )

House is 85k and I have about 12k to play with.. in terms of deposit etc and my only debt is a loan for about 5k left £227 a month.

I can get a mortgage for 95% - repayments of £470 or 90% £440. (35 years as I wont be there for more than a few years)


Option 1 95% Mortgage 5% deposit and pay off my 5k loan so my outgoing are £200 better off monthly but with only maybe £1500 to play with after moving fees etc.

Option 2 90% Motgage 10% deposit keep the loan but I know it will be tight... and the same applies with the £1500 left etc.

Option 3 95% Mortgage 5% deposit keep the loan but I will have about 7.5k to play with on the house- decoration and buy stuff baring in mind I am a first time buyer and have no possesions really.

Also in Dec I will get a car allowance of about £290 a month after tax.. so my wages will go up.... there for I could option 3 and use the residue of the £7.5k left if I got a little stuck.


Your thoughts

Andy_R

iTrader: (3)

Jake its a personal choice, really all depends on what you want.
Your likely to need a fair wack to cover additional costs each month so assuming that the interest rate is lower on the mortgage than on your loan(I guess it isnt a low interest/interest free loan) and as long as your not being penalised and having to accept a less favourable mortgage rate for the lesser deposit, id be inclined to go for clearing your feet and the 95% loan. Like I said at the start its personal and the more sensible route may not necesarly be the route you want to go down.
Good luck with the Viewing.

Maria.

Option 1!

Pay off all of your debt, that way you only have your mortgage to worry about, then the additional £200 a month youre better off, youll be able to put towards furnishings anyway!

st3v3

Lose the loan mate,
option 1 i would go for,one less debt and you will feel better for it as well,call it peace of mind.

for me you cant put a price on sanity knowing that you owe money to too many people would drive me mad

Been there done that

Big G

I wouldnt buy just yet, even if it means renting for 6 months I just wouldnt buy at the moment.

Shings

Unft circumstances dictate I must...

I cant rent for any cheaper than that round here and the house I am looking at is in a country side location and cheap in my opinion.

But I do hear what you're saying......

Big Andy W

Very true in uncertain times, you could wipe out your deposit and get in negative equity within a few months if prices fall like they are predicting!

Shings

Yes I know... but I'm prepared to take the risk and ride out any storm.


I dont want to get this off topic though...

Those are my options I just wanted to get a feel for what other people thought.


J

15D

Listen to the ladys advice

S1rst

Option 1. Get rid of the loan, then you can concerntrate on the mortgage/bills and then the £200 a month youll be saving from the loan could be used to do the house up bit by bit. Or id actually be tempted to put the £200 (or most of it) aside for a rainy day.