Buying a house (and renting)

That's really great Ad, you must be so chuffed.

I got my survey back last week. Little bit of damp, but not much. Like a hand print size in a couple of rooms. They couldn't look in the loft as access was too difficult. My dad doesn't seem concerned by these and he's telling me to get this completed.

I emailed my solicitor yesterday checking how things are going, as it had been a week since I heard from him. Nothing back yet, which is a concern. Hopefully early next week he'll message.

I need to sort out my home insurance, but conscious I don't have an idea what a reasonable completion date is. I was hoping early Jan, but might just aim for the 21st. To give myself some space.

Also home insurance is a right strawberry floating faff. I'll have to sort it this weekend I think. I initially went with someone my mortgage broker recommended, but I signed while I was dealing with the theft of a load of my property and didn't do the due diligence I should have, and ended up cancelling it as it was really expensive, but they haven't given me confirmation yet. Bastards.

Victor Mildew wrote:
Lime wrote:
Victor Mildew wrote:Just come back from paying our mortgage off

Well done! That's amazing. I've just got 15 years to go on mine

Are you staying put now, or will you get back on the treadmill in due course?

The dream is to pile excess money in to pensions and retire early. Ideally we'd do that abroad somewhere. A detached house would be nice, but we really don't need it, it's just a nice to have more than anything. We should be able to save a nice bit between us to have a very small mortgage if we did go for some were else really.

Moggy wrote:
Victor Mildew wrote:Just come back from paying our mortgage off

Mortgage free?! Now that's living the dream!

It feels a bit surreal at the moment. Very strange not to owe anyone anything any more. Nice security for jobs too if things should go majorly tits up with the way the world is.

That's what my dad did but it turned out he inherited 200k and paid it off with that. The size of the house was ridiculous, considering it had no beds for anyone to stay in. I think it was the equivalent of 4 bed but instead it was master bedroom, two studies (one each :roll:

) and two large living rooms and kitchen/dinner. I slept on an airbed once or twice. Proper weird. 76k salary so strawberry float knows what he spent his money on if he couldn't afford a bed.

Edit: I just checked, it's valued at 500k now which means at the time my grandfather died he had paid off around 300k.

PostRe: Buying a house (and renting) by **Tomous** » Sat Dec 18, 2021 1:32 pm

Lime wrote:I make some small overpayments each month, so over the past year I probably overpaid 3 months worth of capital repayment, so it should bring the final date forward a little without too much pain - every 4 years it's a year off I guess . Wish I'd started doing that years ago, though!

Depends how you look at it really. My mortgage interest rate is 1%, at the moment it makes far more sense for me to put my spare money into my Shares & Stock ISA, because while there is some risk, the return is hooefully going to be over 1%

PostRe: Buying a house (and renting) by **Imrahil** » Sat Dec 18, 2021 1:42 pm

Yep, I've deliberately made the decision not to overpay my mortgage over the last few years because my baserate tracker interest rate has been so low. It would be counterproductive.

It's definitely worth it though for people with higher rates, since the savings you make by overpaying are greater than keeping the money in a savings account. It's all about that equation.

Imrahil wrote:Yep, I've deliberately made the decision not to overpay my mortgage over the last few years because my baserate tracker interest rate has been so low. It would be counterproductive.

It's definitely worth it though for people with higher rates, since the savings you make by overpaying are greater than keeping the money in a savings account. It's all about that equation.

You have to be saving a ridiculous amount to exceed your 20k ISA limit each year & exceed the higher rate tax allowance of £500 in interest.

Higher rate taxpayers should max out pensions (40k) and ISA's before looking to overpay which means saving up to 60k of post-tax income.

PostRe: Buying a house (and renting) by **Lime** » Sat Dec 18, 2021 2:13 pm

My mortgage rate's fixed at 2.19% for another 3 years which I don't think I'll get on savings right now.

I do have a chunk of premium bonds that's a rainy day fund- if it makes the odd £25 now and then that's all good.

PostRe: Buying a house (and renting) by **Tomous** » Sat Dec 18, 2021 3:16 pm

Lime wrote:My mortgage rate's fixed at 2.19% for another 3 years which I don't think I'll get on savings right now.

I do have a chunk of premium bonds that's a rainy day fund- if it makes the odd £25 now and then that's all good.

You wouldn't get it in savings no but my Stocks and Shares ISA is 10% up this year. Obviously it does depend on your risk appetite though .

YouTube · PostRe: Buying a house (and renting) by **Stugene** » Sat Dec 18, 2021 7:59 pm

Tomous wrote:
Lime wrote:My mortgage rate's fixed at 2.19% for another 3 years which I don't think I'll get on savings right now.

I do have a chunk of premium bonds that's a rainy day fund- if it makes the odd £25 now and then that's all good.

You wouldn't get it in savings no but my Stocks and Shares ISA is 10% up this year. Obviously it does depend on your risk appetite though .

Yeah Stocks and Shares ISAs are the way to go. Going for Funds rather than trading the instruments yourself can reduce your risk and any brokerage fees. Get 5 or 6 and split your contributions between them. Gotta remember though - unless you are King of the Markets, this style of investment is a long game. You should not be looking for a 3-4 month return, rather holding these investments for a year +. Naturally this doesn't mean you shouldn't reduce investment in funds that are underperforming - just that you cannot think of it as a get rich quick scheme.

The other option is you give your money to me and I invest it in my property portfolio (purchasing Casa Stugene for myself)

Last edited by Curls on Sun Dec 19, 2021 10:49 am, edited 1 time in total.

Yeap I've just changed my plan to a 40 year plan on a 1% 5 year fix. Paying less that £300 a month, it's ideal, the rest can go into other ventures earning higher interest The best bit? I've got infinite overpayments.

PostRe: Buying a house (and renting) by **Dual** » Sun Dec 19, 2021 10:46 am

Curls wrote:Yeap I've just changed my plan to a 40 year plan on a 1% 5 year fix. Paying less that £300 a month, it's ideal, the rest can go into other ventures earning higher interest bit. The best bit? I've got infinite overpayments.

You've only got £12k mortgage left?

PostRe: Buying a house (and renting) by **Curls** » Sun Dec 19, 2021 10:51 am

Dual wrote:
Curls wrote:Yeap I've just changed my plan to a 40 year plan on a 1% 5 year fix. Paying less that £300 a month, it's ideal, the rest can go into other ventures earning higher interest bit. The best bit? I've got infinite overpayments.

You've only got £12k mortgage left?

108K, the 5 year fix is at 1% and then it'll go up after 5 years, you know how it works. I extended the term to 40 years. With infinite overpayments allowed it seemed like the logical thing to do, if I have extra cash...just overpay.

My mortgage is still over £200k

PostRe: Buying a house (and renting) by **Tomous** » Sun Dec 19, 2021 1:05 pm

I'm locked in at 1% for 5 years too :cool:

PostRe: Buying a house (and renting) by **Curls** » Tue Dec 21, 2021 1:22 am

If I had a Jack Nicholson Nod GIF to hand, I'd use it.

PostRe: Buying a house (and renting) by **Tomous** » Tue Dec 21, 2021 9:56 am

I've got £117k left on my mortgage with 24 years left on it, with making £50/month overpayments.
My mortgage is actually made of two parts due to paying off Help to Buy,

£91,975 currently at 2.69%
£24,958 currently at 3.19%

I'm currently on a fixed rate until July 2023, but man it sounds like I'm getting shafted if people are getting interest rates of 1% right now.

Lagamorph wrote:I've got £117k left on my mortgage with 24 years left on it, with making £50/month overpayments.
My mortgage is actually made of two parts due to paying off Help to Buy,

£91,975 currently at 2.69%
£24,958 currently at 3.19%

I'm currently on a fixed rate until July 2023, but man it sounds like I'm getting shafted if people are getting interest rates of 1% right now.

Don't worry too much as there's always someone worse off, my interest rate is higher than yours and my balance left is over double :lol:

297k mortgage here. :dread:

Chose a 2 year tracker in September as it had No Early Repayment Charges. Tracks at 1.14% above the base rate so is 1.24% until 1st February when it'll go up to 1.39%.

It's still lower than my personal inflation rate and in an economics sense, that means it's a negative interest rate so I'm not making any overpayments.

PostRe: Buying a house (and renting) by **Dual** » Tue Dec 21, 2021 10:40 am

We're going to keep moving every 5 years to a bigger house so I've resigned myself to the fact I'll be paying a mortgage in some form right into my 60s.

Exchanged yesterday.

Buying a house (and renting)

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