To buy now or wait?

[Iammetoday]

We rent at the moment. Our landlord is selling up. Shall we use savings, or borrow to get a 5% deposit? Or keep renting? We are early 40s, 2 dc. Been renting with same landlord for 10 years so we have cheaper rent than market and landlord is giving us first offer on the house to buy but it would be a struggle to get the money needed especially in today's mortgage climate. Also I don't think we could raise more than 5% deposit and not getting any younger- can you get mortgage with 5% in 40s?

[onefinemess]

Your age isn't an issue OP.

A few things, firstly, you can't borrow money to use as a deposit, your lender won't accept it. Your deposit has to be your own money or from someone who will sign a legal document stating that the money isn't a loan and doesn't need to be paid back.

There are a lot of ways to get your own house. There are developers who will "pay" your deposit for you, essentially an interest free loan that you either pay back monthly or when you sell the house. There are also some good schemes like the help to buy ISA.

Work out your budget first, plan for 6%, rates will likely drop in the next two to three years and by time for renewal, say in 2027-28, rates will probably be around 5%. So you will save a bit there.

Never too late to buy, don't listen to people who talk of a crash, if you just want a home of your own, then it doesn't matter if the market crashes. It will.always come back up again eventually.

[Iammetoday]

Thanks @onefinemess great advice, you have given me food for thought. I'm glad age isn't a factor. Could you point me to the developers that pay your deposit?