Hi Monkey :o
great rule of thumb for these sort of opportunities (I've learned the hard way!!) is as follows:
Mortgage payment = 2x borrowed amount. (based on 6% interest rates over 25 year mortgage)
Therefore £300,000 mortgage = £600,000 payment to the bank over life of mortgage
How long would it take you to save up six hundred thousand pounds in cash?
If its more than 25 years you cannot afford the mortgage, if its less than 25years then every year you don't buy! I'm joking of course, but only slightly as for every £1 you're saving, you're reducing the amount to the banks by £2.
This is without factoring in maintenance costs of home 'ownership'
The BIG con trick at the moment is that historically low interest rates make mortgages seem affordable, which they are. but what if they return to 6-8% what does that do to the payments.
Renting is no longer 'dead money' in 2012 renting is very much the smart money!
Home ownership is an illusion! the banks own your home!!
take care and best,
Sarah 