If anyone doesn't mind wading through this, could you help me see the wood for the trees? Trying to work out the best thing to do - from both a head and heart point of view.
Basically I'm trying to decide whether to be sensible and keep my borrowing down as low as possible (but make several big compromises on the property I buy in terms of size and location) or take out a larger mortgage in order to get the home I really want.
Dilemma is this: I have AIP with Woolwich for max of £132,000 (I also have £123,000 deposit) and get to keep excellent lifetime tracker on £86k of that amount (am porting existing mortgage). However, am really struggling to find a property within £255k budget. Looking for a good size 2-bed ground floor (non-basement) flat with good layout and private garden. (Soooo expensive where I live). Most are around the £275-320k mark. Been looking and researching for six months and prices are just skyrocketing.
On the other hand, Natwest (assuming they accept me) will let me borrow £218k according to their calculator!! (I don't want anywhere near that much). But I could borrow, say, £157k for a £280k property and still be within 60% LTV. But would this be madness - giving up a lifetime tracker for a 2 year fixed and taking on even more borrowing? And I'd have to use up my couple of ISAs for stamp duty too. However, by doing this I could get the home I want. I may well be living there for a decade or more so it's really important for me to get the right place.
I see my options as:
- Stick with the Woolwich. Have a smaller mortgage, much better rate, and move away to a different cheaper town (a genuine option as I work from home and have no dependents) and get the type of property I'm looking for elsewhere (but not know anyone) OR buy a smaller place here with maybe just a balcony instead of a garden. (But getting a garden is the whole reason I'm moving!! Haven't had one for 20 years!!)
- Stay where I am (where I really want to be and where my friends and family are) but take on a much larger mortgage to get the type of property I'm looking for.
In terms of monthly repayments, either option is well within affordability. I suppose I'm thinking of a longer term view. The first option I could keep the mortgage term around 18-20 years, the second I'd have to go back to 25 years. I'm 40, so no spring chicken.
Arrghh. I just cannot decide what to do. My heart is saying location is the most important thing, but I'm a natural born worrier about money.
PS. I live in Hove.
Basically I'm trying to decide whether to be sensible and keep my borrowing down as low as possible (but make several big compromises on the property I buy in terms of size and location) or take out a larger mortgage in order to get the home I really want.
Dilemma is this: I have AIP with Woolwich for max of £132,000 (I also have £123,000 deposit) and get to keep excellent lifetime tracker on £86k of that amount (am porting existing mortgage). However, am really struggling to find a property within £255k budget. Looking for a good size 2-bed ground floor (non-basement) flat with good layout and private garden. (Soooo expensive where I live). Most are around the £275-320k mark. Been looking and researching for six months and prices are just skyrocketing.
On the other hand, Natwest (assuming they accept me) will let me borrow £218k according to their calculator!! (I don't want anywhere near that much). But I could borrow, say, £157k for a £280k property and still be within 60% LTV. But would this be madness - giving up a lifetime tracker for a 2 year fixed and taking on even more borrowing? And I'd have to use up my couple of ISAs for stamp duty too. However, by doing this I could get the home I want. I may well be living there for a decade or more so it's really important for me to get the right place.
I see my options as:
- Stick with the Woolwich. Have a smaller mortgage, much better rate, and move away to a different cheaper town (a genuine option as I work from home and have no dependents) and get the type of property I'm looking for elsewhere (but not know anyone) OR buy a smaller place here with maybe just a balcony instead of a garden. (But getting a garden is the whole reason I'm moving!! Haven't had one for 20 years!!)
- Stay where I am (where I really want to be and where my friends and family are) but take on a much larger mortgage to get the type of property I'm looking for.
In terms of monthly repayments, either option is well within affordability. I suppose I'm thinking of a longer term view. The first option I could keep the mortgage term around 18-20 years, the second I'd have to go back to 25 years. I'm 40, so no spring chicken.
Arrghh. I just cannot decide what to do. My heart is saying location is the most important thing, but I'm a natural born worrier about money.
PS. I live in Hove.
