Tuesday, December 23, 2008
Another lamb to the slaughter
I was shattered when my offer on a 2-bedroom Ladbroke Grove flat was rejected. Now, a year later, the property has sold for £50k less than I offered. It is clearly time to start ferreting for a property again. Last year I had no problem getting a mortgage for £250,000, despite my low income of £23,000. Now I have a deposit of £60k, and am looking at properties around £300,000. But on my income I can only borrow £130,000,which leaves a big deficit. I have cajoled my father into acting as a guarantor. My mortgage advisor recommends an interest only fixed-rate deal, with monthly payments of £1,000. My take-home pay is £1,463 but if I take in a lodger at £600 a month, my payments will be less than I am paying in rent. I can change to capital repayment when my situation changes - God willing!