Rent or buy

[Zippyette]

So just found out that we are unlikely to be lent more than £135k for a mortgage. We have a £30k deposit so basically could get a £165k property HOWEVER we are looking at being able to afford a two bed flat in our town and the surrounding areas. We currently rent a two bed house with a small garden and a large green out front.

as a family of 4 (2 yo boy, 4.5 yo girl) I don't know what to do. Do we carry on renting as it suits our families needs better? Or buy even though it would be a squash and squeeze and would be sad to lose our outdoor space just to get on property ladder?
There's no sign of shared ownership coming up anytime soon. My DH is 42 and I'm 40 next year so length of mortgage is limited too.

How do people plan financially if they rent all their life? I feel like we should own so that when we retire and have paid off mortgage won't have to worry about roof over our head.
Don't want to move area as already left London 3 years ago cos couldn't afford to buy...but childcare is just crippling our affordability now... Any ideas?

I would keep saving, wait till the 2yo is at school. Some people believe there will be a house price crash so I'd be wary of buying any old place incase you are stuck with it due to negative equity.

Zippyette

Personally speaking and assuming that your relatively large deposit to mortgage amount offered is the best around, based on what appears to be those limited options I would stay where you are for the next few years, as you cannot get this time back with a young family and space is important, including for your sanity.

Maybe when both children are at primary school it may ease your finances a bit, and interest rates for a mortgage should still be relatively low.

Alternatively now, whether either you or your partner are D.I.Y practical or not, have you considered going along and checking out the nearest Home Auctions room, along the lines of the BBC’s ‘Homes Under the Hammer’ with the view of buying and doing up a property over time?

I see the benefits but have never been brave enough, and if we had of taken on a big project, I have no doubt we would have later featured on ‘DIY SOS’, but over time we have picked up some useful skills, but if you are lucky enough to know some tradespeople as, or through friend etc - and view this possibly years ahead project (with two young children) as both an adventure and means to a positive end - it could be worth checking one auction day out at least.

Then if you need some friends and family help getting stuff done in a project, you may be reminded of the adage ‘A friend in need, is a pain in the arse’, but you can just smile and be thick skinned for such a family oriented dream most of us want, to own a home with enough space.

Could you buy a property to rent out? Then you stay in rented but you are on the property ladder.

You'd have to talk to someone in the know, but it might be worth exploring.