Mortgage Vs Pirvate rent

[AyeshaD]

Hi lovely ladies,

Hope you all have wonderful morning break, !

I was thinking about this all yesterday and this morning and before I want to decide the option with my OH, want see your opinions will be much appreciated!

I desperately want to have my own place, through council is long process. I want to rent privately at the meantime till further notice. not ready for buying at this stage because to be frank either save anything, both have things on plates to pay off first might take a while ( debts).

I want to know whose in here on rent and whose on mortgage, Whats the cheaper option? when I say cheapest dont mean by cheap I understand both is struggle, but looking family perspective way. I have one child and more kids.
My theory, I thought to stick to private till kids in primary full time then have mortgage buying house?

I'm bit lost just needed direction, everyone says buy now and put minimum deposit. but think about our both income joined is 27,000 and dont get working tax nor help on childcare fee.

 

[netty]

i private rent at the moment but got a great deal on my house at 495, we desperatley want to buy too as a martgage is usually cheaper than renting but like you say its getting the 5% deposit saved.

I would rent cheap if you can, and save the money for a house and keep it away for when you feel secure enough to move

you can also do part ownership schemes should your joint income not be enough to get you a decent mortgage

 

[tweetyfoo]

I've just bought my first house after privately renting for 5 years.

People thought me and hubby were mad to "throw our money away" but at the time buying wasn't right for us.

We waited till the right time, and found a beautiful house at a great price, which is coming in at slightly more per month than renting (but its a 3 bed semi, and we were renting a 2 bed flat)

I'd say if you can comfortably afford to buy then do it, but if you can't, then rent - there's no harm in it x

 

[Froslass]

At the moment a mortage is probably the cheaper option.

We pay 450 a month, but could buy a 100k house and pay under 300 on the mortgage!

However, practically no lender will touch you at the moment unless you've got at least 10% deposit (some will go to 5%, but usually they are for customers) and a squeaky clean credit history.

 

[Froslass]

If you have savings then you could try to get a mortgage, but I know as well if you've got a lot of debt it won't be easy.

Sign up for experian if you can, keep an eye on your credit score, your debt, try save a good deposit then go for it as soon as you can cause its a cracking time to buy!

We've got the deposit, and no debt, but because OH has never had a credit card, we need to get one to prove a credit history and re apply in a few months!

It's crazy!

 

[Mummy2Adam]

At the moment private renting would be cheaper than our mortgage, my advice is dont rush into anything at the moment with the market being the way it is x x

 

[Titch85]

I privately rent but l'd love to buy. The problem I have is that I don't have the money for a deposit and the amount the bank will give me for a mortgage is not even enough to get a 1 bed flat in this area. The amount I pay in rent would cover the mortgage payments easily though.

 

[Asd1]

The more deposit you put down the less you will pay in mortgage each month. You can see a mortgage broker for free and they will tell you ow much you can borrow on your income wich then will give you a target deposit to save for. Don't forget that there are many different types of mortgages and alot of them are flexible

 

[netty]

can i just say also, when i saw this i thought it said 'pirate rent'' and was like ooooo whats that!

 

[Mummy2Adam]

Even with a large deposit, 1st time buyer mortgages rates are stupid especially if you are looking for a fixed rate so you know how much you will be paying each month, ours is over 7% when the base rate is about 3%, only another 1 and 1/2 years left before we are out of our deal and it cant come quick enough.
If i could sell up tomorrow, i would and id rent again, its less hassle! x x

 

[Asd1]

Our rate is 7 % as it was five years fixed and we only put down 10% deposit we are looking to move house and can either transfer this mortagage to another house or pay to get out of it but my sister and her partner bought there house shortly after my oh and I did but as they had a 50k deposit they only pay £350 a month and have a much bigger house lol so if you bought say a 100k house and put down 15-20% and provided you have some form of credit history you should be ok. Best to see an advisor xx

 

[Titch85]

I also like the fact that if the boiler, cooker, fridge etc break down, it's not up to me find the money and pay for it, it's up to the landlady. I am quite lucky, when there's been an issue they've been round the same day to sort it out.

 

[Lolly85x]

I have a mortgage. I was very very lucky, in that my gran and mum wanted to help me out rather than paying out private rent every month. So they both put down some money for my deposit. Without them I would never have been able to buy, EVER probably. I bought 3 years ago... And needed a 25% deposit. Yikes!
My mum got a joint mortgage with me, to enable me to get a better house in a better area.
We got a fixed rate for 5 years, I have 2 years left. But when it comes to re-mortgaging I will take the mortgage over with my boyfriend. To rent a house like mine in my street is about £600 a month. And our mortgage is £400 so it's a big difference. It's really hard for 1st time buyers at the moment, quite sad actually. If it hadnt been for my family's help an support then I would of had to private let. No option.xxx

 

[LikeJohnnYoko]

I rent. I used to own but found it unnecessarily stressful. At this point in my life I have no interest in buying again.

I would like to a see a move to more long-term lets of houses in this country; such as you get in France (Paris in particular). I don't mind "doing up" a rental property whilst I live in it - with the landlords blessing of course (not major works, just painting and maybe recarpetting a room) because I don't see it as wasted money; I benefit from being happy in my environment and the landlords benefit from having a caring, happy tenant.

 

[leesey]

can i just say also, when i saw this i thought it said 'pirate rent'' and was like ooooo whats that!

 

[leesey]

I both rent and own at the moment. I own my old flat (3 bed, centre of town, good flat) but because it's on the first floor with lots of stairs outside, and because the neighbour is a douche, we moved out to find a more family friendly home for baby. So we're currently renting a 3 bed mid terrace. Aside from trying to rent out our flat being stressful (having that over our heads would never have happened had we just been renting in the first place, we could have just given the lease up) because it won't sell just now, the mortgage is only £40 cheaper than our current rent. For two vastly different types of houses. The actual size of the houses are roughly the same so it's about the same to run with gas and electricity and stuff, but the fact that mortgaging a flat is only marginally cheaper than renting a house privately, if I could do it all again I would stick to renting.
I love the idea that it's 'my' flat (hubby hates it, so he doesn't want it to be his!!) and I feel a fondness for it that I probably never will with a rented house, but in this financial market that's just not a good enough reason to own rather than rent.

Another thing we like about renting is that if something goes wrong (roof leaking, lock broken, etc) it's not us that has to fork out to get it fixed, that's the landlord's responsibillity. As a homeowner you just don't know what's round the corner. The bad wind we had a few months ago caused a chimney to crash down the roof of our flat, smashing up everything in its path. That's thousands of pounds of damage. Lots to think about being a homeowner, it can be very stressful xx

 

[JJ Mum]

I think it's really very hard for people to get on the housing ladder nowadays, I would work to pay off debts as when being considered for morgage they take these monthly payment to debts into account, like cred cards, car finance etc and reduce the amount they would lend you, we had this issue. We only had to put down 5% and were lucky to catch the market at just the right time before they went up or I'm not sure what we would be doing. But the more kids you have , the harder it will become to get on the ladder, so really worth working towards. If I was buying now, I may look at those buy to let ones to afford it and then your in..

 

[newbie1984]

I've been on both sides of the fence: I live in London so expensive is pretty pricey. I was renting a 2 bed flat for £825pcm. I did this for about a year and a half with a now ex bf. I always wanted to buy but wasn't sure I wanted to do it with him. Thank god we didn't as we split up a couple years back lol I bought my own place in November 2011. The timing was right and the place I found was selling for £210k prior to the markets crashing. I got it for £166k. Fortunately I was lucky enough to have some inheritance which covered a 25% deposit but it still wasn't enough!! As the mortgage was just in my name they wouldn't let me borrow anymore than about £110k I think, even though I'd paid double in rent but hey whatever. My lovely dad helped me out and gave me the shortfall and here I am today rocking it on my own which I quite like!

I've been pretty lucky with my mortgages I'm on a tracker of 2.19%. I know in the next year or so it'll go up but for now I'm happy!!!

It's definitely tough for people who arent in the position to be given some financial support, if not impossible! Now is a good time with mortgages though so its worth speaking to an advisor. I also found natwest to be good. Santander screwed me over.

Good luck xxx

 

[Jayjay027]

I both rent and own also. Hubby and I are very fortunate tbh, we rent the apartment we're living in now, which is a good size 2 bedroom place, and we own 2 houses. 1 semi detached, 3 bedroom house and 1 detached, 4 bedroom house - both owned outright!
The plan is to do up the 3 bedroom house and live there for a while in the next couple of years, then sell them both and buy in the area we both love, that's awesome for raising children - but is quite sought after. I actually can't wait to house hunt there lol, but it won't be for 2yrs or so x

 

[kellylou]

We bought and pay 315 a month for 2 bed semi not moving until all our debt as gone x