Mortgage advice...

Dunno if this is the right forum for something like this, but was hoping for a few ideas...

I finished my undergraduate in 2001 and did go back to uni for a postgraduate a couple of years ago, but that never came to anything.In spite of not getting a graduate job, I worked shitty dead end temp type jobs with no prospects and so far paid off my student overdraft (large student loan outstanding) but managed to amass savings in excess of 30K since I graduated. Now I have a proper job, paying 20K p.a. and thought it was time I figured getting a place since my 300+ rent per month is effectively disappearing.

My idea was to get the biggest place I could afford, keep one room myself and let the rest on a room + bills basis and let that pay off my mortgage. Went to look at mortgages the other day, and the most they's stump up was

75K on 40 year terms. So wiping out my savings that makes 105K which is enough for a two bed terrace/semi in a shit area of Leicester - everyone who lives there knows that Eyres Monsell and Braunstone are "sought after" (agency description) areas, if only by those interested in drug dealing or burglary. Or I could get a decent 1 bed flat. Apparently, because even though I have three credit cards without missing a payment on each in three years, I don't actually have amounts outstanding on them and perversely, this means that they won't lend me as much as they previously thought I could get - they reckoned on 120K at first glance.

Any ideas how I might be able to proceed? A bit short of ideas at the moment. If I wait and save more, prices will have risen by the amount of savings.

Marcus

Reply to
Marcus Fox
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Do you rent a room or a house?

If the mortgage costs more than your rent then is it sensible?

Well don't buy yet. Save up a bit more deposit. There's massive crisis in the mortgage market and your deposit will be very welcome to them - but don't throw it away on a property that isn't what you want.

Reply to
Mogga

I only rent one room in a shared house at the moment.

Marcus

Reply to
Marcus Fox

And you'd only in effect have one room in a share house if you buy now. Plus all the repair bills etc. You've got a whopping deposit saved, which is all credit to you.

Do you like sharing a house? Do you know who you'd share with? What if you couldn't find anyone to share with you? How would you cope?

Reply to
mogga

I think you should be able to do better than that. 4x income should be available, just. Is the 40 years your choice?

So you know Leicester :-)

Try south of Victoria park. You won't get the best house with the money that you have but you will get one with one rentable room. There will be no problem finding a tenant if you could put up with a student/young/poor person.

Simon

Reply to
Simon

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