How much is a reasonable mortgage?

[DieScum]

A mere six years of saving for a 300k house if you manage to put away 4k a month. Long time in anybody's life.

Yeah, I don't think the amount of time to save up would be reasonable. Could maybe save up for a cheaper interim place but even then I still have to live somewhere when saving and the rent is going to be roughyl the same as the interest on somewhere.

It does sound a nice idea but the timespan is just too long.

I'd also hope to gain from house price rises (ha! obv not right now) and the debt being worn down by inflation.

[chicane]

Dang right that's manageable -where are you getting such a rate?

Funnily enough, my first mortgage was around 2k a tyear.
But then, the house cost just under 40 grand.

[blacjac]

Yeah, I don't think the amount of time to save up would be reasonable. Could maybe save up for a cheaper interim place but even then I still have to live somewhere when saving and the rent is going to be roughyl the same as the interest on somewhere.

It does sound a nice idea but the timespan is just too long.

I'd also hope to gain from house price rises (ha! obv not right now) and the debt being worn down by inflation.

So you'd rather pay tripple the amount over something like 20 - 30 years because 6 years is too long?

[chicane]

So you'd rather pay tripple the amount over something like 20 - 30 years because 6 years is too long?

What's wrong with getting a flexible mortgage, and then paying it off as quickly as possible to minimise the interest paid? Best of both worlds.

[blacjac]

What's wrong with getting a flexible mortgage, and then paying it off as quickly as possible to minimise the interest paid? Best of both worlds.

Now that is a good idea.

[Money Money Money]

What the hells the point of buying a house now???

Why not wait till house prices hit rock bottom?

Rent your dream house in the mean time!

[GreenerGrass]

There are only 2 of you - if I was in your shoes I would :

1) Keep saving. Wait a few years for property prices to fall 40%
2) The just buy a regular house to live in. You will be able to get plenty of house for a price of under £300k
3) At the same time buy an investment property with the amount of cash/mortgage that you would have otherwise spent on a more expensive house for yourself.
4) Wait a few years for prices to rise.
5) Get married, have some kids (or vice versa).
6) Upgrade to bigger house, which you will need by then.

A mortgage of £300k is a horrendous burden to put you and your girlfriend under. I have mates with mortgages of £220k and they worry day and night.

I pretty much agree with the above (except 5). Wait a couple of years for things to bottom out - although I reckon it'll be closer to a 25% drop in total - and only buy something you could still afford the payments on if you had to go back to permie.

If you hate being a landlord you can always sell any investment property after a few years and use the equity to either pay down your mortgage or buy something bigger if required.
In tax-avoidance terms the "just one big house for yourself" approach would mean zero capital gains tax in the future, but since they reduced CGT it's less of an issue.

[Lazylobster]

Stay out, rent for a couple more years. Stash that cash and job done.

The UK housing market is toast. We're already circa 10% down YOY. Lots of evidence to suggest this is going to get a lot, lot worse.

So, sit back, relax, take it easy.

For a somewhat bias read, try http://www.housepricecrash.co.uk a lot of people on this site get it right more often than the so called economists.

I sold the last of my property in Jan 07. Pretty much spot on. The housing market is usually like an oil tanker, takes time to slow down and go into reverse. The speed at which this market is correcting is somewhat scary.

Pay the rent, at the end of the day, you don't want to buy into a depreciating asset.

LL

[BrilloPad]

I have just taken out a mortgage of £380k.

[moorfield]

I have just taken out a mortgage of £380k.

You won't be retiring any time soon then eh
BP?

My offset was down to £130k but now rising rapidly due to the building works at Moorfield Towers.