Hi All,
Hoping some of the more experienced home-owning MSE members and savvy property investors can provide some guidance. I just need general advice on how to best use a sizable deposit to getting on, and working our way up the property ladder.
After a lot of hard work and saving (and PPI reimbursements), my partner and I will soon be in a position to put down a £20K deposit on a house with £5K set aside for refurbishment and have £5K in an ISA savings account. We both work full time and have a combined yearly income of around £55,000.
This will be our first home. The houses we have seen are relatively modest in price circa £60 - 70K with minimal to some refurbishment required. The idea is to start small and buy a house using £20K as a deposit and have a mortgage for the remainder. As I work in sales, any extra money earned can be put toward overpaying on the mortgage. We will live in the house whilst refurbishing and will do most of the work ourselves and with the help of friends and family members. We also have access to a project manager (my retired Father) willing to work pro-Bono.
Once refurbishment is complete, the plan is to re-market the house for a profit, using the sale price to pay off the existing mortgage. The remainder will then be used as a deposit on our second home. In an ideal world, this will happen as quickly as possible (around 12 - 18 months) and we can scale up by a few thousand pounds for our second home, allowing for refurbishment costs and fees.
For now, both I and my partner are committed to this. We both have a good credit score/rating and no outstanding debts.
My questions are, firstly has anyone been in a similar position and what have their experiences been? As we don't plan on living in our first house for any length of time, what length of term of mortgage should we be looking for? Should we be buying a house valued at around £60 -70K or more? Is overpaying on the mortgage a wise idea? In a nutshell, we want to put away as much as possible with a view to having a sizable deposit for our second home in which we plan to live for the next 2 - 3 years and continue to save hard to reach a point where we own our home outright or at least own 80 - 90% of the value within 5 years.
Is this too ambitious? This is our first experience of mortgages and hopefully buying and selling a house and I would like to hear from MSE members that have successfully started with a modest amount, and in a relatively short amount of time managed to own their home outright.
I appreciate there a myriad of factors in term of re-sale value, solicitor and surveying fees, refurbishment costs etc. but would be grateful for some general guidance on how best to achieve our plans.
Thanks!
Hoping some of the more experienced home-owning MSE members and savvy property investors can provide some guidance. I just need general advice on how to best use a sizable deposit to getting on, and working our way up the property ladder.
After a lot of hard work and saving (and PPI reimbursements), my partner and I will soon be in a position to put down a £20K deposit on a house with £5K set aside for refurbishment and have £5K in an ISA savings account. We both work full time and have a combined yearly income of around £55,000.
This will be our first home. The houses we have seen are relatively modest in price circa £60 - 70K with minimal to some refurbishment required. The idea is to start small and buy a house using £20K as a deposit and have a mortgage for the remainder. As I work in sales, any extra money earned can be put toward overpaying on the mortgage. We will live in the house whilst refurbishing and will do most of the work ourselves and with the help of friends and family members. We also have access to a project manager (my retired Father) willing to work pro-Bono.
Once refurbishment is complete, the plan is to re-market the house for a profit, using the sale price to pay off the existing mortgage. The remainder will then be used as a deposit on our second home. In an ideal world, this will happen as quickly as possible (around 12 - 18 months) and we can scale up by a few thousand pounds for our second home, allowing for refurbishment costs and fees.
For now, both I and my partner are committed to this. We both have a good credit score/rating and no outstanding debts.
My questions are, firstly has anyone been in a similar position and what have their experiences been? As we don't plan on living in our first house for any length of time, what length of term of mortgage should we be looking for? Should we be buying a house valued at around £60 -70K or more? Is overpaying on the mortgage a wise idea? In a nutshell, we want to put away as much as possible with a view to having a sizable deposit for our second home in which we plan to live for the next 2 - 3 years and continue to save hard to reach a point where we own our home outright or at least own 80 - 90% of the value within 5 years.
Is this too ambitious? This is our first experience of mortgages and hopefully buying and selling a house and I would like to hear from MSE members that have successfully started with a modest amount, and in a relatively short amount of time managed to own their home outright.
I appreciate there a myriad of factors in term of re-sale value, solicitor and surveying fees, refurbishment costs etc. but would be grateful for some general guidance on how best to achieve our plans.
Thanks!