Should I buy or buy to let?
Posted on 2 September 2008
I am on a salary of 20k and currently live in social housing paying a low rent (£300 pcm). I have 40k in savings.
My goal is to be a homeowner. However, I dont know which is best.
To stay put and get a lodger who would cover most of the rent and purchase a buy to let. Or to buy my own place and get a lodger to help with the mortgage. Or the final option is to swap my house for a council flat with right to buy, purchase it, and go on to eventually get a buy to let.
confused. help. thank you!
Well the good news is you do have some options, and to be honest whether you get a buy to let or a home for yourself is totally up to you. The amount you can borrow will be based on either your income or rental income.
If you purchase a buy to let you will a slightly bigger deposit (20-25%) than if you buy a home (10-15%) and the associated fees can be a little higher too.
I think in the end it will come down to the type and cost of property you are looking to get and work from there to find the right mortgage. Why not give our brokers a call on 0845 4131053, they would be delighted to help and could work out the actual cost of both options for you.
I wish you all the very best with your goal!
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