pepa2010: "Initially I wanted a FL but heard of fungus, bad smell etc"

Do not let that dissuade you. There is no inherent reason why a front-loading machine should have greater mold issues than a top loading machine (or vice versa).

The complaints that you hear of mold come from people who have previously used machines that consume 20-40 gallons of water per load, and, after getting their first front-loading washer, continue to use the same amount of detergent and fabric water per load that they always have used, despite the much lower quantity of water that the new machine uses. When looking to ascribe blame, of course, the last place they point their fingers is at themselves.

"I am looking at purchasing my very first set of washer and dryer."

If you get a super attractive price break from buying the washer and dryer as a set, then take advantage of it. But clothes dryers are a very simple, mature technology, product, and there is very little difference between $500 and $1000 dryers. It is not a great deal to purchase a $1000 dryer discounted to $800 because it is part of a set if there is another dryer, just as good or even better (but not "matching"), available for $500. And (as I have posted here before), there are real advantages to a dryer with a drop-down "hamper" door, and the Whirpoool and Kenmore drop-down door dryers are among the most affordable -- and reliable -- dryers on the market. Save your dollars to upgrade the washer selection.

The reason some washing machines get smelly is because the user doesn't regularly was with hot water (cleans clothes better, and keeps machine clean. Also, if "color" detergents is used every time it can cause more build up on the internal parts for some reason. Powders with oyxgen based bleach and bicarbonate do a good job in keeping clothes clean and machine too.