Vote: Cash buying or a Mortgage?

[Minimini0001]

Hi, I’ve been trying to purchase a property but I don’t know what I go for.

Current situations

• holding 250k deposit
• currently outside the UK (I need to be in the UK at least for 3 months to apply for a AIP)
• First time buyer
• self-employed with 5.2%~5.8% mortgage rates.
• single

my concerns are

• if I need to get a mortgage, it takes a long time ( 3 months to apply for a principal then I can start a property search)
• I’m working from home so it might be better for me to have an extra room but my rates are higher than others.

so my question is

• which one would be better - a small property I can cash out around £270-£300 for a faster buying or a bigger and nicer property with mortgages around £500k ?

I’m looking for a place where there is some nature and a decent gym with Spa facilities like David Lloyds but still has an access to London. Possibly in Kingston or Chigwell. Or any recommendations?

Hi @Minimini0001 , I would start by speaking to one of the big brokers - Mojo, L&C or others, as your assumption that it takes 3 months to get a MiP seems wrong to me, is that because you’re abroad? In my experience it only takes a few days. Getting the mortgage approved in full can take three months, but you can only do that once you have an offer accepted on a property anyway.
with your aspirations for location I would take the mortgage, as £250k won’t get you very much at all in somewhere like Kingston these days.

Alice

Have a look at what you can get in those places for 250k. It will be very little. I think you will need the mortgage.

You def won't get anything decent for £250k I'm either place without additional funds for a mortgage.

I would take a look at prices in London and the SE as they may give you a bit of a shock if you have been away for a while...

Your budget will buy very little in either of those areas OP. You might have no choice but to get a mortgage.

Have you had a look on rightmove?
Might be quite shocked what you could get without a mortgage

Thanks for the tip, @ForWildCoralUser . That’s really helpful!