After three or so years I've finally managed to fix a problem I had with my credit scoring. The only problem is I'm now just so happy that I can get one that I need to be careful that I don't get burnt with the one I chose.
I ended up getting a few quotes from my own bank's lender - C&G because they take my personal finances into consideration - other lenders didn't and I've been refused in the past. My actual bank recognised my 14 years with them and were offering me a whole host of packages.
Ok, first of all I've got a part ownership in a flat, and that needs to be sold. But it's mortgage free. - this is my deposit, plus some savings money. I'd hope to have about £70,000 from this.
My options are to buy a Flat or a House... the latter is obviously preferable. Either purchase will need modernisation, I'm not into paying premiums for 'move into' places.
1-2 bed Flat purchase prices are about £130k-£160k
2-3+ House purchase prices are about £185k+
(same area)
My two borrowing amounts are about:
Borrow £70k - £80k and it'll be a 17.5-20 year term, payments of about £260+ a month.
Borrow £110k - £120k and it'll be a 35-40 year term, payments of about £600+ a month.
now I know it's my decision but I just wondered if anyone had sensible experience or advice for me. I know I'm better off borrowing as less as I can, and that's reflected in the payments, but flat prices are quite high in bristol and house prices are coming down, so maybe i'm in a good position to take advantage if i stretch myself.
Am I best off borrowing as much as I can afford?
I'm still trying to work out my finances so I don't have a maximum per month I can pay back, but I planned to use my savings if I get in trouble with payments, I'm happy to live cheapily and I'm also happy to rent rooms out to friends/people to help subsidise costs in general (and be prepared to suffer when they're not paying and i'm renovating).
I just feel like i'm on my own a bit, my family are a bit glassy eyed about it and just say borrow as much as I can, buy a house blah blah blah... but i'm trying to think sensibly.
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