Buy a home or wait ?

[woohooteehee]

Hello,

I have been confused on whether I should buy a home so I would appreciate any advice on the following situation:

I am 23 years old and I am able to buy a 1 bed for about 190k, in a location where the commute to London is possible (greater London). I have can put down a deposit between 28-32k which brings me to a monthly payment i can afford. I believe this is a good chance to get onto the property ladder at my age/stage of life. Another reason for me wanting to get onto the property ladder now, is that my parents do not own a property in the UK and i believe this would be a good way to secure their future as well as mine.

I currently live with my parents and i am happy to move away however, i believe that there may be a time in the next few years where i might need to move away from this property i buy, or come back home (my mum is a carer for my dad so if anything were to happen i would move back to help).

However, i am currently very confused on whether i should buy now and take the option of 'consent to let' when needed, which is a risk as they may reject if it is a problematic lender/ or increase interest rates to a payment i do not like. I have heard all sorts of rules of getting the leaseholder permission, having a certain LTV etc.

Or whether I should wait and buy a 2 bed (with a higher deposit and new salary), so even if i have to move back or anywhere else i can still have a lodger for the 2nd bedroom so my payments will still be covered?

I would love any advice on the matter.

Thank you!

Speak to a mortgage broker about which lenders might be open to giving you a consent to let.
How likely is this something that you expect to happen?
It's not easy letting things out so you need to make the numbers work for you.
If you are buying just for you to live in, I'd say go for it now.

You do realise that you need to satisfy minimum residency requirements if you currently live outside of the UK to apply for a UK mortgage? Normally 3 yrs.

Hey,

Thanks for your replies.

@DancingHippos Yes, speaking to some mortgage brokers! If there is a 5 year fixed term, i would say there is a high chance i go through some sort of life change whether its finding and partner, new job etc. so would definitely want to consider the option of CTL.

@sansou I am born in the UK and have lived here all my life so getting a mortgage would not be an issue. Sorry if it wasn't clear, my parents live here too.

I don't have a strong opinion. However, now is not a great time to be a landlord. In most areas, the financial return is similar to what you'd get by investing your money elsewhere, except with high risk and more work. So you may find that if/when you need to move, selling could be better than renting your property out.

On the other hand, having a lodger can be very lucrative and is low risk. If you can possibly acquire a property with an extra bedroom suitable for renting out, you'll do well for yourself.

Not what you asked, but: since you're eager to buy at some point, have you opened a LISA? Provided you are fairly certain that you will one day buy a property in your sole name for less than £450k, there's free money to be had there. Even if you aren't sure that's what you'll do, it is still a good idea to open a LISA immediately and put £1 into it. https://www.moneysavingexpert.com/savings/lifetime-isas/