Advise

[Tolsty]

I have 200K savings.I am aiming to buy a house around 400k.I can easily save 100K in a year.

Should I wait another two years to make my saving and buy with own cash of 400K OR should I mortgage now with 50% deposit and stuck for next 22 plus years with monthly payments.

If you can 'easily save £100k a year' why would you be stuck with monthly payments for 22 years? 🤔

If you can save £100k a year why would you take 22 years to pay off the mortgage?

You mean that I can pay my remaining mortgage in next few years if I have 100K/year savings??(but there will b lot of early repayments plus interest).thats my worry

Look into offset mortgages talk to a broker.

There wouldn’t be an early repayment charge if you fixed for 2 years then paid it off after the 2 years is up.

You won't have early repayment charges unless you were on a fixed rate.

Just pay a fixed rate for two years then pay it off.

I think you should learn more about how mortgages work before you get one, as you seem very confused.

I agree with you.I m confused about mortgage.TBH it seems to me bit of a scam(I know it's not)

What exactly are you confused about, and how is a scam?

I said it in sarcastic way.
Simply to put
House=400K
You give=200K(50 %deposit)
Lender give rest=200K
You give back to lender=200K plus let's say 4% interest.(Way way way more than what you have taken from lender.

So why not to save that 200K on your own and go for cash buy.

"A confuse 1st time buyer

Because it would take most people a lot longer than 2 years to save 200k…surely you know that @Tolsty for someone who earns a lot you seem very out of touch.

Because most people can’t save up £400k and because most people would be wasting money on rent which may or may not be more then 2 years interest on a mortgage. If you are living rent free and happy to stay there for two more years (bare in mind houses may have gone up or down in that time) then yes you will save money on interest.

Where are you going to live while you save to buy somewhere to live?

If you are easily saving £100k a year, you will soon tire of a £400k property. Whereabouts are you? Around the southeast you may get a one bed flat that needs ‘refurbishment’.

Get a first direct mortgage, unlimited free overpayments.

I'm sad that someone who can't understand the basic maths of a mortgage can earn enough money to save £100k. I feel hard done by 😂

Buy on a 2 year fixed rate
Pay it off after 2 years
4% interest should be less than rent for 2 years (not sure where you are living now)
In 2 years a house that is currently £400k may be £450k...

Just get a 2 year mortgage deal, pay off x at the ebd of the deal, get another deal for the outstanding balance.

It's a huge and expensive loan for the vast majority of us who can't just go buy a house ourselves
HTH

Maybe you would understand better if you realized there are other loan options with names other than “mortgage”. Bank loans can be used for buying a home and not be a “mortgage”.
Our bank loan for our house is a personal line of credit. Allowing us to pay whatever whenever on the principle, interest is charged monthly at an acceptable rate.
Our initial line of credit was for 250K

Historically, interest rates on personal loans have always been much higher than on mortgages as the bank has no security over the loan.

Unless you are desperate to remove yourself from the rental market I wouldn't buy, but keep saving and investing that money. So buy in 2 years or not at all, so you can build a nice pot for passive income in just a few years time.

@FrannyScraps you are right.I m quite dumb in math because I am biology

It's occur to me from all above very useful conversation that I can consider not to go for mortgage.

You are biology…??