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Original poster

Try to get mortgage or continue to rent?

18 replies

Supersee · 04/03/2022 10:16

WWYD?

40, single no kids. Earns 35k, under 5k in savings and rented current place for 10 years. Great area, very decent rent as have special deal with LL. Couldn't afford to buy here however.

Worried about not being on property ladder for a while, elusive potential partner has not appeared in life! Potential to possibly go down shared ownership route with obtaining a deposit via a loan. Already have an existing loan with £6k to go so this would be added to it. Any place available wouldn't be anywhere near as great as current place.

Would you try to obtain a mortgage in this situ or remain renting?

OP posts:

Scottishgirl85 · 04/03/2022 11:48

In my opinion it is always better to own a home. You have to consider how you will afford rent in retirement. At 40 you will get a good length mortgage, but the longer you leave it the length of mortgage will be shorter and thus borrowing amount potentially lower. There are government schemes that could help, I'm sure someone wiser shall come along and make good suggestions.

FinnulaFloss · 04/03/2022 11:52

I disagree with the pp - it's not always best to buy.

Being happy is the ultimate aim surely - there's no point in moving to a mortgaged house if you hate the area. Sure you'll be secure - in a place you don't want to be. Not great.

You could always buy and rent out and remain renting yourself. That comes with its own challenges but it's another option on the table.

ThisBloodyNoiseInMyHead · 04/03/2022 12:24

I think it's always best to buy. A friend of mine has always rented, and now she's 64 with no savings, a poorly-paid job, and her landlord wants to sell the house, so she's got to look for somewhere else, and the houses local to wear she is are too expensive now. She'll either have to find a flat (she lives with her husband, a cat and a dog) or go to a cheaper area but change her job - neither of those things are easy at 64.

Dazedandconfused10 · 04/03/2022 12:28

Any existing debt will lower the amount a lender will give you. Will they accept a deposit from a loan rather than savings, because you'll also need solicitor fees, survey costs, etc.

Chronicallymothering · 04/03/2022 12:31

I’d continue to rent where you are for now and try and save a bit longer for a deposit, so that either if the LL wants you to move on you have options, or you have the money for a mortgage in time. At the moment you have effectively zero savings as your savings and debts cancel each other out. You’d need money for solicitors and moving costs if moving out. You need to try and work up a bit of a savings buffer if you can.

Original poster

Supersee · 04/03/2022 12:33

It's the renting when I'm a pensioner which is stressing me out. I can't rely on any inheritance.

An initial chat with a mortgage adviser has said that a loan via my work would be accepted as a deposit, but then there's all the other costs as @Dazedandconfused10 has listed. I don't want to leave my place but I also can't relax knowing that my property could be sold at any time and obviously will eventually.

OP posts:

Original poster

Supersee · 04/03/2022 12:39

It's so frustrating, I'm obviously saving but it's the deposit that's the killer.

OP posts:

SantaMonicaPier · 04/03/2022 12:41

If you love where you are living now would buying a rental which you could one day move into yourself be an option? I know buy to let mortgages are different to residential ones and you'd need the security of being able to find a tenant.

Corrag · 04/03/2022 12:46

If you earn £35k and your rent is quite cheap, I'd suggest you stay put for now and concentrate on paying off your debt, then saving towards your deposit. You must have a reasonable amount of disposable income.

RaininSummer · 04/03/2022 13:08

Buy if you can. It is great relief to me being almost 60 that at least I don't have rent to pay.

Overthebow · 04/03/2022 16:12

How much are you able to save? What’s your disposable income after bills are paid? You don’t have any savings at the moment considering your debts so is it realistic that you could save a decent amount? I would prioritise buying if you can, but you’ll likely need more savings for deposit and moving costs. Can you prioritise saving this year and build more up?

deadlanguage · 04/03/2022 16:33

Lenders are not going to approve a mortgage if you’re already using a loan for a deposit, it’s too risky.

Darbs76 · 05/03/2022 08:35

Best bet is to try and save more deposit, easier said than done though. Can you get overtime? I’m saving for a deposit atm and doing Saturday overtime. I did do week day for a while too, it wasn’t easy especially with kids doing 12hr days plus. Overtime is likely to go post April so I’ve been thinking of a second job as my kids are teens now so don’t need me home all the time. Maybe a couple of evenings / 1 weekend day. With the cost of fuel going up too I need all the money I can get. I’ve been able to pay off debts too since I’ve been working overtime as it’s good money (1.5 usual rate)

Original poster

Supersee · 05/03/2022 09:14

@Darbs76

I think staying put and saving more is the way forward. Yes currently doing overtime.

OP posts:

Babymamamama · 05/03/2022 09:30

I would look at how long it would take you to pay off a mortgage? As my motivation for paying and even over-paying on my mortgage is that one day it will actually end. I think renting in the private sector can work well shorter term when you are earning and if you have a supportive landlord not always bumping up the rent. But as an older person I’d hate to be at the behest of landlords and rent hikes in my retirement. So yes maybe focus on saving up a bigger deposit with the aim to buy at some point although I do fully appreciate that is easier said than done.

Doanythingforlove · 05/03/2022 09:35

Can you save like mad for six months and then re-evaluate your position?

Orangesandlemons77 · 07/03/2022 11:02

My parents are separated and renting in retirement. They are both on low incomes and get some benefits top ups such as pension credit. My dad's in sheltered accomodation which is quite small, but gets looked after and now when he is older there is a warden there to help with any problems. It's been very helpful as he was recently diagnosed with dementia

So, I think that if you have no dependants to leave property to, and don't mind e.g. sheltered accomodation then it can be an option to stay renting.

Original poster

Supersee · 07/03/2022 19:29

Thanks all. I think staying put and saving as much as physically possible seems to be the way forward. Wouldn't be adverse to renting sheltered accommodation or the like when I'm older, at this rate there will be no one to look after me anyway or to leave any property to.

OP posts:

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