Releasing equity in home for BTL - advice appreciated...
Discussion
Apologies in advance for the long post...
I’ve created a few threads recently on my personal financial situation with a view to thinking mid/long term and how to make the best use of my money. I appreciate the help given and I’ve taken it on board. I’ve even explored the idea of selling up and living on a houseboat(!) mortgage free - but the sums made that a less than viable option due to running cost and depreciation, despite the savings to be had and the benefit of having zero debt. It’s still something I’d like to do long-term potentially but maybe in retirement. Anyhow…
I’d taken on the advice given a few weeks ago; I’ve now paid in full a personal loan taken out to buy a new car last year, opened a LISA with HL putting in £1.7K across 3 funds. And I’ve signed up to a work’s pension who match up to 3.5% salary contribution. I now pay in 9%.
Ref the latter point, I have the opportunity to enter a salary sacrifice agreement and my employer will add 100% of what they save in NI contribution to the pension but I’m holding off on this now for the reasons below.
In summary:
I’m in my early 30s
Salary of 50K
No financial commitments/loans/HP/leases etc
My only (non-mortgage) debt is £4K on a credit card which is interest free for 3 years so I’m in no rush to pay off
No savings other than £1.7K in the LISA
Pension pot of £4K (bugger all, I know!)
Everything else is owned outright
My house is worth £140K and I owe £82K, so 42% equity.
As with the previous thread, I’ve worked hard over the past year since buying my first home to get myself financially straight and I’m looking at what I spend each month in detail and where it goes. I’ve become a bit anxious over the future and retirement and I’m looking for ways to make my money grow.
At the moment my mortgage payment is £398 and I now roughly overpay by £350 a month. This’ll see my mortgage cleared in 10 years. I now also now stick £500+ a month into my LISA.
I’m considering taking some of the equity out of my home to use to fund a buy to let. I’ve spoken to the mortgage provider and I’ve passed all the affordability checks. They’re ringing me tomorrow with the quotes but they’ve confirmed they’ll allow me to borrow up to 90% of the property’s value.
My thoughts.
Option 1:
My home at £140K, less £82K owed = 58K equity
£58K minus the £14K (10% I’d need to leave in my current property assuming I go for the full 90% loan)
This gives me £44K to put as a deposit for a buy to let
Because I live in the north, there are still properties around the £100K mark which attract £500 PCM rent
Using the full £44K means I’d need a BTL mortgage of around £60K. For a 5 year fixed rate it’d be around £260 a month for a mortgage.
These are very, very rough numbers, but…
If I yielded £5K through a let per year (assumes the property is empty for 2 months a year and lets for just 10 months)
Less 15% cut for a fully managed costs
Maintenance costs/insurance etc of £100 PCM
= £3250 a year
And I’d be taxed the profit too.
The mortgage alone would be £3.2K plus I’ve have to make repayments on the £44K borrowed.
So far, it looks like I’d just be just about breaking even at best.
I appreciate the property will hopefully appreciate over time but this still looks like an investment which potentially doesn’t pay.
If I were to do this then it'd leave:
£126K owed on current property
£44K owed on the loan/charge account through the equity released
£60K on the BTL mortgage
= £230K debt
Option 2
Sell home for £140K and buy another of a similar value
Pay off 82K outstanding mortgage
Pay the £2K penalty for exiting early
Pay Estate agent £1.5K
Pay soliciitor £1K
Pay £14K deposit on a new house
= left with £39.5K used for BTL deposit
£126K owed on new home to live in
£65K on BTL mortgage
=£191K debt
Option 2 looks the better plan but something doesn’t look right with the sums. There's too little debt compared with option 1. What am I missing!?
I’d really appreciate any thoughts on any of the above. Especially if I’ve got my sums wrong. Or what you might do in my shoes.
I can’t help thinking I should remain averse to risk, appreciate my financial situation and instead just stick away in the bank as much as I can each month. My current outgoings are as below, with some of what’s left used for entertainment etc.
Thanks in advance..
I’ve created a few threads recently on my personal financial situation with a view to thinking mid/long term and how to make the best use of my money. I appreciate the help given and I’ve taken it on board. I’ve even explored the idea of selling up and living on a houseboat(!) mortgage free - but the sums made that a less than viable option due to running cost and depreciation, despite the savings to be had and the benefit of having zero debt. It’s still something I’d like to do long-term potentially but maybe in retirement. Anyhow…
I’d taken on the advice given a few weeks ago; I’ve now paid in full a personal loan taken out to buy a new car last year, opened a LISA with HL putting in £1.7K across 3 funds. And I’ve signed up to a work’s pension who match up to 3.5% salary contribution. I now pay in 9%.
Ref the latter point, I have the opportunity to enter a salary sacrifice agreement and my employer will add 100% of what they save in NI contribution to the pension but I’m holding off on this now for the reasons below.
In summary:
I’m in my early 30s
Salary of 50K
No financial commitments/loans/HP/leases etc
My only (non-mortgage) debt is £4K on a credit card which is interest free for 3 years so I’m in no rush to pay off
No savings other than £1.7K in the LISA
Pension pot of £4K (bugger all, I know!)
Everything else is owned outright
My house is worth £140K and I owe £82K, so 42% equity.
As with the previous thread, I’ve worked hard over the past year since buying my first home to get myself financially straight and I’m looking at what I spend each month in detail and where it goes. I’ve become a bit anxious over the future and retirement and I’m looking for ways to make my money grow.
At the moment my mortgage payment is £398 and I now roughly overpay by £350 a month. This’ll see my mortgage cleared in 10 years. I now also now stick £500+ a month into my LISA.
I’m considering taking some of the equity out of my home to use to fund a buy to let. I’ve spoken to the mortgage provider and I’ve passed all the affordability checks. They’re ringing me tomorrow with the quotes but they’ve confirmed they’ll allow me to borrow up to 90% of the property’s value.
My thoughts.
Option 1:
My home at £140K, less £82K owed = 58K equity
£58K minus the £14K (10% I’d need to leave in my current property assuming I go for the full 90% loan)
This gives me £44K to put as a deposit for a buy to let
Because I live in the north, there are still properties around the £100K mark which attract £500 PCM rent
Using the full £44K means I’d need a BTL mortgage of around £60K. For a 5 year fixed rate it’d be around £260 a month for a mortgage.
These are very, very rough numbers, but…
If I yielded £5K through a let per year (assumes the property is empty for 2 months a year and lets for just 10 months)
Less 15% cut for a fully managed costs
Maintenance costs/insurance etc of £100 PCM
= £3250 a year
And I’d be taxed the profit too.
The mortgage alone would be £3.2K plus I’ve have to make repayments on the £44K borrowed.
So far, it looks like I’d just be just about breaking even at best.
I appreciate the property will hopefully appreciate over time but this still looks like an investment which potentially doesn’t pay.
If I were to do this then it'd leave:
£126K owed on current property
£44K owed on the loan/charge account through the equity released
£60K on the BTL mortgage
= £230K debt
Option 2
Sell home for £140K and buy another of a similar value
Pay off 82K outstanding mortgage
Pay the £2K penalty for exiting early
Pay Estate agent £1.5K
Pay soliciitor £1K
Pay £14K deposit on a new house
= left with £39.5K used for BTL deposit
£126K owed on new home to live in
£65K on BTL mortgage
=£191K debt
Option 2 looks the better plan but something doesn’t look right with the sums. There's too little debt compared with option 1. What am I missing!?
I’d really appreciate any thoughts on any of the above. Especially if I’ve got my sums wrong. Or what you might do in my shoes.
I can’t help thinking I should remain averse to risk, appreciate my financial situation and instead just stick away in the bank as much as I can each month. My current outgoings are as below, with some of what’s left used for entertainment etc.
Thanks in advance..
Any profit you make on the BTL is going to be taxed. However, you can obviously claim all expenses against this. For instance your mobile phone, use of home as office, fuel to go and check the BTL/collect rent, all legitimate expenses. Then add in servicing the boiler, electrical or gas checks, fees for the management company.....
Property is always a good investment for the long term. But you have to look at it as long term.
Personally I'd hang fire for 12 months and see how things pan out. You're still quite young, on a good salary, you'll have paid a bigger chunk off the mortgage and paid more into your savings this time next year.
Property is always a good investment for the long term. But you have to look at it as long term.
Personally I'd hang fire for 12 months and see how things pan out. You're still quite young, on a good salary, you'll have paid a bigger chunk off the mortgage and paid more into your savings this time next year.
superlightr said:
I would let things settle for a year. You have made a lot of changes - wait, see how those work out for you, reconsider next year.
ps cant see any allocation to holidays/car funds?
Thanks.ps cant see any allocation to holidays/car funds?
Car funds is £25 a month for tyres and servicing, and £12 PM for tax, and £60 PM for insurance. The car's not yet a year old so there's no MOT or repairs to factor in just yet.
The £700 surplus each month at the bottom goes towards holidays and entertainment etc.
The spreadsheet was more about working out the cost of absolute necessaries, plus overpayment/LISA costs.
Thanks.
I'd be interested in whether my numbers actually stack up though.
Option 1 seems far worse than option 2. I feel like I'm not costing something.
My only worry is that the longer I wait the more property will increase. In the area I'm looking to buy there's been an 8% rise in 12 months. My savings in the next year won't bridge such a rise if I were to wait.
I'd be interested in whether my numbers actually stack up though.
Option 1 seems far worse than option 2. I feel like I'm not costing something.
My only worry is that the longer I wait the more property will increase. In the area I'm looking to buy there's been an 8% rise in 12 months. My savings in the next year won't bridge such a rise if I were to wait.
I'm all for property and renting out. I have been there and done that and now run a letting agents.
So I think your figures are fine option 1 would be way I would go if you went that way.
We work on the basis that we don't make any "profit" on the rental but will do on the capital growth. If you do make a bit of profit that's a bonus. ( we have by the way but don't rely on it) We have done well out of it and have 3x properties paid off so the rent is now an income + capital growth if/when we sell them. We are overpaying home mortgage and that's been our main priority to overpay the mortgages and get rid of them asap so as and when each property is paid off that payment then gets added to the other to pay off quicker.
Its just that some things take a bit of time to shake out and settle. So before committing to 20+years options I would hang fire 6mths/ a year let it settle and then if your figures/priorities are still good go for it.
With the car thing - I put a high priority on cars hence have a saving fund towards the next car etc as well as maintenance.
There will always be suitable properties, and suitable deals to be done. Don't rush into it as its expensive to correct. location/location/location really is true.
So I think your figures are fine option 1 would be way I would go if you went that way.
We work on the basis that we don't make any "profit" on the rental but will do on the capital growth. If you do make a bit of profit that's a bonus. ( we have by the way but don't rely on it) We have done well out of it and have 3x properties paid off so the rent is now an income + capital growth if/when we sell them. We are overpaying home mortgage and that's been our main priority to overpay the mortgages and get rid of them asap so as and when each property is paid off that payment then gets added to the other to pay off quicker.
Its just that some things take a bit of time to shake out and settle. So before committing to 20+years options I would hang fire 6mths/ a year let it settle and then if your figures/priorities are still good go for it.
With the car thing - I put a high priority on cars hence have a saving fund towards the next car etc as well as maintenance.
There will always be suitable properties, and suitable deals to be done. Don't rush into it as its expensive to correct. location/location/location really is true.
Edited by superlightr on Monday 5th February 16:34
Edited by superlightr on Monday 5th February 16:39
Thanks a lot for the response.
I think I'll be running this car for 3+ years and hadn't really thought beyond that.
Thanks for looking at the sums. It just seems that with option 2 I'll be tens of thousands better off in terms of debt/mortgage but the outcome will be the same as option 1, i.e. 10% equity in my live-in property and 40% or so in the rental. It doesn't make sense. Something has to be missing, I just can't see where I've gone wrong.
I agree with your comments on location. The place I've got in mind has continued to shoot up in value over the past few years and I can't see it changing. It does play on my mind that post-Brexit property prices will drop and I'll have overpaid - and that's not much more than a year off. So perhaps best waiting.
I probably sound like a sad case but I still fancy a narrowboat, just for weekends rather than a live-on. Part of me thinks f
k it, take £35K out of the house and buy one. I live a pretty frugal life so why not enjoy.
I must be the only Fiesta ST owner in their 30s hankering after a narrowboat in the country!
I think I'll be running this car for 3+ years and hadn't really thought beyond that.
Thanks for looking at the sums. It just seems that with option 2 I'll be tens of thousands better off in terms of debt/mortgage but the outcome will be the same as option 1, i.e. 10% equity in my live-in property and 40% or so in the rental. It doesn't make sense. Something has to be missing, I just can't see where I've gone wrong.
I agree with your comments on location. The place I've got in mind has continued to shoot up in value over the past few years and I can't see it changing. It does play on my mind that post-Brexit property prices will drop and I'll have overpaid - and that's not much more than a year off. So perhaps best waiting.
I probably sound like a sad case but I still fancy a narrowboat, just for weekends rather than a live-on. Part of me thinks f
k it, take £35K out of the house and buy one. I live a pretty frugal life so why not enjoy.I must be the only Fiesta ST owner in their 30s hankering after a narrowboat in the country!
Tyre Smoke said:
However, you can obviously claim all expenses against this. For instance your mobile phone, use of home as office, fuel to go and check the BTL/collect rent, all legitimate expenses.
Mobile phone? OP is using a manageing agent. How on earth can you claim mobile phone costs? Ditto for home office?Don't claim fuel, claim 45p per mile instead
I think youve double counted your equity release lending in option 1.
If it helps, i plugged your numbers into my spreadsheet as im looking to do the same thing as you.
Property Value £100,000
Market Rent (£) £500 p/m
Comparative Yield 6.00% £6,000.00 p/a
Yield inc Mort 2.88% £2,880.00 p/a
Yield inc Mor/Mnt/Vid/Stp 2.25% £2,246.67 p/a
Yield inc Mor/Mnt/Vid/Stp/Mgt 2.17% £2,167.08 p/a
£1,000 1% Maintenance
£600 3% Stamp Duty (over 5 years)
£470 Tenant Finders Fee (Letting Agent)
12% Tenant Management Fee (%) £60
Actual Yields 17/18 18/19 19/20 17/18 01/04/2017 31/03/2018
Income £1,000 £5,500 £5,500 18/19 01/04/2018 31/03/2019
Expenses £5,634 £5,943 £3,443 19/20 01/04/2019 31/03/2020
Profit Before Tax (£) -£4,634 -£443 £2,057
Yield before tax (%) -4.63% -0.44% 2.06%
Property Value £100,000
Mortgage Value £56,000 Interest 2.49%
Monthly Repayment £260.00
Repayment Number Year Opening Balance Loan Repayment Interest Charged Capital Repaid Extra Payment Closing Balance LTV% % Capital Outstanding
01/01/2018 1 1 £56,000 £260.00 £116 £144 £- £55,856 56% 99.74%
01/02/2018 2 1 £55,856 £260.00 £116 £144 £- £55,712 56% 99.49%
01/03/2018 3 1 £55,712 £260.00 £116 £144 £- £55,568 56% 99.23%
01/04/2018 4 1 £55,568 £260.00 £115 £145 £- £55,423 55% 98.97%
01/05/2018 5 1 £55,423 £260.00 £115 £145 £- £55,278 55% 98.71%
01/06/2018 6 1 £55,278 £260.00 £115 £145 £- £55,133 55% 98.45%
01/07/2018 7 1 £55,133 £260.00 £114 £146 £- £54,987 55% 98.19%
01/08/2018 8 1 £54,987 £260.00 £114 £146 £- £54,841 55% 97.93%
01/09/2018 9 1 £54,841 £260.00 £114 £146 £- £54,695 55% 97.67%
01/10/2018 10 1 £54,695 £260.00 £113 £147 £- £54,548 55% 97.41%
01/11/2018 11 1 £54,548 £260.00 £113 £147 £- £54,402 54% 97.15%
01/12/2018 12 1 £54,402 £260.00 £113 £147 £- £54,255 54% 96.88%
01/01/2019 13 2 £54,255 £260.00 £113 £147 £- £54,107 54% 96.62%
01/02/2019 14 2 £54,107 £260.00 £112 £148 £- £53,959 54% 96.36%
01/03/2019 15 2 £53,959 £260.00 £112 £148 £- £53,811 54% 96.09%
01/04/2019 16 2 £53,811 £260.00 £112 £148 £- £53,663 54% 95.83%
01/05/2019 17 2 £53,663 £260.00 £111 £149 £- £53,514 54% 95.56%
01/06/2019 18 2 £53,514 £260.00 £111 £149 £- £53,365 53% 95.30%
01/07/2019 19 2 £53,365 £260.00 £111 £149 £- £53,216 53% 95.03%
01/08/2019 20 2 £53,216 £260.00 £110 £150 £- £53,067 53% 94.76%
01/09/2019 21 2 £53,067 £260.00 £110 £150 £- £52,917 53% 94.49%
01/10/2019 22 2 £52,917 £260.00 £110 £150 £- £52,767 53% 94.23%
01/11/2019 23 2 £52,767 £260.00 £109 £151 £- £52,616 53% 93.96%
01/12/2019 24 2 £52,616 £260.00 £109 £151 £- £52,465 52% 93.69%
01/01/2020 25 3 £52,465 £260.00 £109 £151 £- £52,314 52% 93.42%
01/02/2020 26 3 £52,314 £260.00 £109 £151 £- £52,163 52% 93.15%
01/03/2020 27 3 £52,163 £260.00 £108 £152 £- £52,011 52% 92.88%
01/04/2020 28 3 £52,011 £260.00 £108 £152 £- £51,859 52% 92.60%
01/05/2020 29 3 £51,859 £260.00 £108 £152 £- £51,706 52% 92.33%
01/06/2020 30 3 £51,706 £260.00 £107 £153 £- £51,554 52% 92.06%
01/07/2020 31 3 £51,554 £260.00 £107 £153 £- £51,401 51% 91.79%
01/08/2020 32 3 £51,401 £260.00 £107 £153 £- £51,247 51% 91.51%
01/09/2020 33 3 £51,247 £260.00 £106 £154 £- £51,094 51% 91.24%
01/10/2020 34 3 £51,094 £260.00 £106 £154 £- £50,940 51% 90.96%
01/11/2020 35 3 £50,940 £260.00 £106 £154 £- £50,785 51% 90.69%
01/12/2020 36 3 £50,785 £260.00 £105 £155 £- £50,631 51% 90.41%
01/01/2021 37 4 £50,631 £260.00 £105 £155 £- £50,476 50% 90.14%
01/02/2021 38 4 £50,476 £260.00 £105 £155 £- £50,321 50% 89.86%
01/03/2021 39 4 £50,321 £260.00 £104 £156 £- £50,165 50% 89.58%
01/04/2021 40 4 £50,165 £260.00 £104 £156 £- £50,009 50% 89.30%
01/05/2021 41 4 £50,009 £260.00 £104 £156 £- £49,853 50% 89.02%
01/06/2021 42 4 £49,853 £260.00 £103 £157 £- £49,696 50% 88.74%
01/07/2021 43 4 £49,696 £260.00 £103 £157 £- £49,539 50% 88.46%
01/08/2021 44 4 £49,539 £260.00 £103 £157 £- £49,382 49% 88.18%
01/09/2021 45 4 £49,382 £260.00 £102 £158 £- £49,225 49% 87.90%
01/10/2021 46 4 £49,225 £260.00 £102 £158 £- £49,067 49% 87.62%
01/11/2021 47 4 £49,067 £260.00 £102 £158 £- £48,909 49% 87.34%
01/12/2021 48 4 £48,909 £260.00 £101 £159 £- £48,750 49% 87.05%
01/01/2022 49 5 £48,750 £260.00 £101 £159 £- £48,591 49% 86.77%
01/02/2022 50 5 £48,591 £260.00 £101 £159 £- £48,432 48% 86.49%
01/03/2022 51 5 £48,432 £260.00 £100 £160 £- £48,273 48% 86.20%
01/04/2022 52 5 £48,273 £260.00 £100 £160 £- £48,113 48% 85.92%
01/05/2022 53 5 £48,113 £260.00 £100 £160 £- £47,953 48% 85.63%
01/06/2022 54 5 £47,953 £260.00 £100 £160 £- £47,792 48% 85.34%
01/07/2022 55 5 £47,792 £260.00 £99 £161 £- £47,631 48% 85.06%
01/08/2022 56 5 £47,631 £260.00 £99 £161 £- £47,470 47% 84.77%
01/09/2022 57 5 £47,470 £260.00 £99 £161 £- £47,309 47% 84.48%
01/10/2022 58 5 £47,309 £260.00 £98 £162 £- £47,147 47% 84.19%
01/11/2022 59 5 £47,147 £260.00 £98 £162 £- £46,985 47% 83.90%
01/12/2022 60 5 £46,985 £260.00 £97 £163 £- £46,822 47% 83.61%
01/01/2023 61 6 £46,822 £260.00 £97 £163 £- £46,659 47% 83.32%
01/02/2023 62 6 £46,659 £260.00 £97 £163 £- £46,496 46% 83.03%
01/03/2023 63 6 £46,496 £260.00 £96 £164 £- £46,332 46% 82.74%
01/04/2023 64 6 £46,332 £260.00 £96 £164 £- £46,169 46% 82.44%
01/05/2023 65 6 £46,169 £260.00 £96 £164 £- £46,004 46% 82.15%
01/06/2023 66 6 £46,004 £260.00 £95 £165 £- £45,840 46% 81.86%
01/07/2023 67 6 £45,840 £260.00 £95 £165 £- £45,675 46% 81.56%
01/08/2023 68 6 £45,675 £260.00 £95 £165 £- £45,510 46% 81.27%
01/09/2023 69 6 £45,510 £260.00 £94 £166 £- £45,344 45% 80.97%
01/10/2023 70 6 £45,344 £260.00 £94 £166 £- £45,178 45% 80.68%
01/11/2023 71 6 £45,178 £260.00 £94 £166 £- £45,012 45% 80.38%
01/12/2023 72 6 £45,012 £260.00 £93 £167 £- £44,845 45% 80.08%
01/01/2024 73 7 £44,845 £260.00 £93 £167 £- £44,678 45% 79.78%
01/02/2024 74 7 £44,678 £260.00 £93 £167 £- £44,511 45% 79.48%
01/03/2024 75 7 £44,511 £260.00 £92 £168 £- £44,344 44% 79.18%
01/04/2024 76 7 £44,344 £260.00 £92 £168 £- £44,176 44% 78.88%
01/05/2024 77 7 £44,176 £260.00 £92 £168 £- £44,007 44% 78.58%
01/06/2024 78 7 £44,007 £260.00 £91 £169 £- £43,839 44% 78.28%
01/07/2024 79 7 £43,839 £260.00 £91 £169 £- £43,670 44% 77.98%
01/08/2024 80 7 £43,670 £260.00 £91 £169 £- £43,500 44% 77.68%
01/09/2024 81 7 £43,500 £260.00 £90 £170 £- £43,330 43% 77.38%
01/10/2024 82 7 £43,330 £260.00 £90 £170 £- £43,160 43% 77.07%
01/11/2024 83 7 £43,160 £260.00 £90 £170 £- £42,990 43% 76.77%
01/12/2024 84 7 £42,990 £260.00 £89 £171 £- £42,819 43% 76.46%
01/01/2025 85 8 £42,819 £260.00 £89 £171 £- £42,648 43% 76.16%
01/02/2025 86 8 £42,648 £260.00 £88 £172 £- £42,476 42% 75.85%
01/03/2025 87 8 £42,476 £260.00 £88 £172 £- £42,305 42% 75.54%
01/04/2025 88 8 £42,305 £260.00 £88 £172 £- £42,132 42% 75.24%
01/05/2025 89 8 £42,132 £260.00 £87 £173 £- £41,960 42% 74.93%
01/06/2025 90 8 £41,960 £260.00 £87 £173 £- £41,787 42% 74.62%
01/07/2025 91 8 £41,787 £260.00 £87 £173 £- £41,614 42% 74.31%
01/08/2025 92 8 £41,614 £260.00 £86 £174 £- £41,440 41% 74.00%
01/09/2025 93 8 £41,440 £260.00 £86 £174 £- £41,266 41% 73.69%
01/10/2025 94 8 £41,266 £260.00 £86 £174 £- £41,091 41% 73.38%
01/11/2025 95 8 £41,091 £260.00 £85 £175 £- £40,917 41% 73.07%
01/12/2025 96 8 £40,917 £260.00 £85 £175 £- £40,742 41% 72.75%
01/01/2026 97 9 £40,742 £260.00 £85 £175 £- £40,566 41% 72.44%
01/02/2026 98 9 £40,566 £260.00 £84 £176 £- £40,390 40% 72.13%
01/03/2026 99 9 £40,390 £260.00 £84 £176 £- £40,214 40% 71.81%
01/04/2026 100 9 £40,214 £260.00 £83 £177 £- £40,038 40% 71.50%
01/05/2026 101 9 £40,038 £260.00 £83 £177 £- £39,861 40% 71.18%
01/06/2026 102 9 £39,861 £260.00 £83 £177 £- £39,683 40% 70.86%
01/07/2026 103 9 £39,683 £260.00 £82 £178 £- £39,506 40% 70.55%
01/08/2026 104 9 £39,506 £260.00 £82 £178 £- £39,328 39% 70.23%
01/09/2026 105 9 £39,328 £260.00 £82 £178 £- £39,149 39% 69.91%
01/10/2026 106 9 £39,149 £260.00 £81 £179 £- £38,971 39% 69.59%
01/11/2026 107 9 £38,971 £260.00 £81 £179 £- £38,791 39% 69.27%
01/12/2026 108 9 £38,791 £260.00 £80 £180 £- £38,612 39% 68.95%
01/01/2027 109 10 £38,612 £260.00 £80 £180 £- £38,432 38% 68.63%
01/02/2027 110 10 £38,432 £260.00 £80 £180 £- £38,252 38% 68.31%
01/03/2027 111 10 £38,252 £260.00 £79 £181 £- £38,071 38% 67.98%
01/04/2027 112 10 £38,071 £260.00 £79 £181 £- £37,890 38% 67.66%
01/05/2027 113 10 £37,890 £260.00 £79 £181 £- £37,709 38% 67.34%
01/06/2027 114 10 £37,709 £260.00 £78 £182 £- £37,527 38% 67.01%
01/07/2027 115 10 £37,527 £260.00 £78 £182 £- £37,345 37% 66.69%
01/08/2027 116 10 £37,345 £260.00 £77 £183 £- £37,162 37% 66.36%
01/09/2027 117 10 £37,162 £260.00 £77 £183 £- £36,980 37% 66.03%
01/10/2027 118 10 £36,980 £260.00 £77 £183 £- £36,796 37% 65.71%
01/11/2027 119 10 £36,796 £260.00 £76 £184 £- £36,613 37% 65.38%
01/12/2027 120 10 £36,613 £260.00 £76 £184 £- £36,429 36% 65.05%
01/01/2028 121 11 £36,429 £260.00 £76 £184 £- £36,244 36% 64.72%
01/02/2028 122 11 £36,244 £260.00 £75 £185 £- £36,059 36% 64.39%
01/03/2028 123 11 £36,059 £260.00 £75 £185 £- £35,874 36% 64.06%
01/04/2028 124 11 £35,874 £260.00 £74 £186 £- £35,689 36% 63.73%
01/05/2028 125 11 £35,689 £260.00 £74 £186 £- £35,503 36% 63.40%
01/06/2028 126 11 £35,503 £260.00 £74 £186 £- £35,316 35% 63.06%
01/07/2028 127 11 £35,316 £260.00 £73 £187 £- £35,130 35% 62.73%
01/08/2028 128 11 £35,130 £260.00 £73 £187 £- £34,943 35% 62.40%
01/09/2028 129 11 £34,943 £260.00 £73 £187 £- £34,755 35% 62.06%
01/10/2028 130 11 £34,755 £260.00 £72 £188 £- £34,567 35% 61.73%
01/11/2028 131 11 £34,567 £260.00 £72 £188 £- £34,379 34% 61.39%
01/12/2028 132 11 £34,379 £260.00 £71 £189 £- £34,190 34% 61.05%
01/01/2029 133 12 £34,190 £260.00 £71 £189 £- £34,001 34% 60.72%
01/02/2029 134 12 £34,001 £260.00 £71 £189 £- £33,812 34% 60.38%
01/03/2029 135 12 £33,812 £260.00 £70 £190 £- £33,622 34% 60.04%
01/04/2029 136 12 £33,622 £260.00 £70 £190 £- £33,432 33% 59.70%
01/05/2029 137 12 £33,432 £260.00 £69 £191 £- £33,241 33% 59.36%
01/06/2029 138 12 £33,241 £260.00 £69 £191 £- £33,050 33% 59.02%
01/07/2029 139 12 £33,050 £260.00 £69 £191 £- £32,859 33% 58.68%
01/08/2029 140 12 £32,859 £260.00 £68 £192 £- £32,667 33% 58.33%
01/09/2029 141 12 £32,667 £260.00 £68 £192 £- £32,475 32% 57.99%
01/10/2029 142 12 £32,475 £260.00 £67 £193 £- £32,282 32% 57.65%
01/11/2029 143 12 £32,282 £260.00 £67 £193 £- £32,089 32% 57.30%
01/12/2029 144 12 £32,089 £260.00 £67 £193 £- £31,895 32% 56.96%
01/01/2030 145 13 £31,895 £260.00 £66 £194 £- £31,702 32% 56.61%
01/02/2030 146 13 £31,702 £260.00 £66 £194 £- £31,507 32% 56.26%
01/03/2030 147 13 £31,507 £260.00 £65 £195 £- £31,313 31% 55.92%
01/04/2030 148 13 £31,313 £260.00 £65 £195 £- £31,118 31% 55.57%
01/05/2030 149 13 £31,118 £260.00 £65 £195 £- £30,922 31% 55.22%
01/06/2030 150 13 £30,922 £260.00 £64 £196 £- £30,727 31% 54.87%
01/07/2030 151 13 £30,727 £260.00 £64 £196 £- £30,530 31% 54.52%
01/08/2030 152 13 £30,530 £260.00 £63 £197 £- £30,334 30% 54.17%
01/09/2030 153 13 £30,334 £260.00 £63 £197 £- £30,137 30% 53.82%
01/10/2030 154 13 £30,137 £260.00 £63 £197 £- £29,939 30% 53.46%
01/11/2030 155 13 £29,939 £260.00 £62 £198 £- £29,741 30% 53.11%
01/12/2030 156 13 £29,741 £260.00 £62 £198 £- £29,543 30% 52.76%
01/01/2031 157 14 £29,543 £260.00 £61 £199 £- £29,344 29% 52.40%
01/02/2031 158 14 £29,344 £260.00 £61 £199 £- £29,145 29% 52.04%
01/03/2031 159 14 £29,145 £260.00 £60 £200 £- £28,946 29% 51.69%
01/04/2031 160 14 £28,946 £260.00 £60 £200 £- £28,746 29% 51.33%
01/05/2031 161 14 £28,746 £260.00 £60 £200 £- £28,545 29% 50.97%
01/06/2031 162 14 £28,545 £260.00 £59 £201 £- £28,345 28% 50.62%
01/07/2031 163 14 £28,345 £260.00 £59 £201 £- £28,143 28% 50.26%
01/08/2031 164 14 £28,143 £260.00 £58 £202 £- £27,942 28% 49.90%
01/09/2031 165 14 £27,942 £260.00 £58 £202 £- £27,740 28% 49.54%
01/10/2031 166 14 £27,740 £260.00 £58 £202 £- £27,537 28% 49.17%
01/11/2031 167 14 £27,537 £260.00 £57 £203 £- £27,334 27% 48.81%
01/12/2031 168 14 £27,334 £260.00 £57 £203 £- £27,131 27% 48.45%
01/01/2032 169 15 £27,131 £260.00 £56 £204 £- £26,927 27% 48.08%
01/02/2032 170 15 £26,927 £260.00 £56 £204 £- £26,723 27% 47.72%
01/03/2032 171 15 £26,723 £260.00 £55 £205 £- £26,519 27% 47.35%
01/04/2032 172 15 £26,519 £260.00 £55 £205 £- £26,314 26% 46.99%
01/05/2032 173 15 £26,314 £260.00 £55 £205 £- £26,108 26% 46.62%
01/06/2032 174 15 £26,108 £260.00 £54 £206 £- £25,903 26% 46.25%
01/07/2032 175 15 £25,903 £260.00 £54 £206 £- £25,696 26% 45.89%
01/08/2032 176 15 £25,696 £260.00 £53 £207 £- £25,490 25% 45.52%
01/09/2032 177 15 £25,490 £260.00 £53 £207 £- £25,283 25% 45.15%
01/10/2032 178 15 £25,283 £260.00 £52 £208 £- £25,075 25% 44.78%
01/11/2032 179 15 £25,075 £260.00 £52 £208 £- £24,867 25% 44.41%
01/12/2032 180 15 £24,867 £260.00 £52 £208 £- £24,659 25% 44.03%
01/01/2033 181 16 £24,659 £260.00 £51 £209 £- £24,450 24% 43.66%
01/02/2033 182 16 £24,450 £260.00 £51 £209 £- £24,241 24% 43.29%
01/03/2033 183 16 £24,241 £260.00 £50 £210 £- £24,031 24% 42.91%
01/04/2033 184 16 £24,031 £260.00 £50 £210 £- £23,821 24% 42.54%
01/05/2033 185 16 £23,821 £260.00 £49 £211 £- £23,610 24% 42.16%
01/06/2033 186 16 £23,610 £260.00 £49 £211 £- £23,399 23% 41.78%
01/07/2033 187 16 £23,399 £260.00 £49 £211 £- £23,188 23% 41.41%
01/08/2033 188 16 £23,188 £260.00 £48 £212 £- £22,976 23% 41.03%
01/09/2033 189 16 £22,976 £260.00 £48 £212 £- £22,763 23% 40.65%
01/10/2033 190 16 £22,763 £260.00 £47 £213 £- £22,551 23% 40.27%
01/11/2033 191 16 £22,551 £260.00 £47 £213 £- £22,337 22% 39.89%
01/12/2033 192 16 £22,337 £260.00 £46 £214 £- £22,124 22% 39.51%
01/01/2034 193 17 £22,124 £260.00 £46 £214 £- £21,910 22% 39.12%
01/02/2034 194 17 £21,910 £260.00 £45 £215 £- £21,695 22% 38.74%
01/03/2034 195 17 £21,695 £260.00 £45 £215 £- £21,480 21% 38.36%
01/04/2034 196 17 £21,480 £260.00 £45 £215 £- £21,265 21% 37.97%
01/05/2034 197 17 £21,265 £260.00 £44 £216 £- £21,049 21% 37.59%
01/06/2034 198 17 £21,049 £260.00 £44 £216 £1 £20,832 21% 37.20%
01/07/2034 199 17 £20,832 £260.00 £43 £217 £2 £20,613 21% 36.81%
01/08/2034 200 17 £20,613 £260.00 £43 £217 £3 £20,393 20% 36.42%
01/09/2034 201 17 £20,393 £260.00 £42 £218 £4 £20,171 20% 36.02%
01/10/2034 202 17 £20,171 £260.00 £42 £218 £5 £19,948 20% 35.62%
01/11/2034 203 17 £19,948 £260.00 £41 £219 £6 £19,723 20% 35.22%
01/12/2034 204 17 £19,723 £260.00 £41 £219 £7 £19,497 19% 34.82%
01/01/2035 205 18 £19,497 £260.00 £40 £220 £8 £19,270 19% 34.41%
01/02/2035 206 18 £19,270 £260.00 £40 £220 £9 £19,041 19% 34.00%
01/03/2035 207 18 £19,041 £260.00 £40 £220 £10 £18,810 19% 33.59%
01/04/2035 208 18 £18,810 £260.00 £39 £221 £11 £18,578 19% 33.18%
01/05/2035 209 18 £18,578 £260.00 £39 £221 £12 £18,345 18% 32.76%
01/06/2035 210 18 £18,345 £260.00 £38 £222 £13 £18,110 18% 32.34%
01/07/2035 211 18 £18,110 £260.00 £38 £222 £14 £17,873 18% 31.92%
01/08/2035 212 18 £17,873 £260.00 £37 £223 £15 £17,635 18% 31.49%
01/09/2035 213 18 £17,635 £260.00 £37 £223 £16 £17,396 17% 31.06%
01/10/2035 214 18 £17,396 £260.00 £36 £224 £17 £17,155 17% 30.63%
01/11/2035 215 18 £17,155 £260.00 £36 £224 £18 £16,913 17% 30.20%
01/12/2035 216 18 £16,913 £260.00 £35 £225 £19 £16,669 17% 29.77%????
If it helps, i plugged your numbers into my spreadsheet as im looking to do the same thing as you.
Property Value £100,000
Market Rent (£) £500 p/m
Comparative Yield 6.00% £6,000.00 p/a
Yield inc Mort 2.88% £2,880.00 p/a
Yield inc Mor/Mnt/Vid/Stp 2.25% £2,246.67 p/a
Yield inc Mor/Mnt/Vid/Stp/Mgt 2.17% £2,167.08 p/a
£1,000 1% Maintenance
£600 3% Stamp Duty (over 5 years)
£470 Tenant Finders Fee (Letting Agent)
12% Tenant Management Fee (%) £60
Actual Yields 17/18 18/19 19/20 17/18 01/04/2017 31/03/2018
Income £1,000 £5,500 £5,500 18/19 01/04/2018 31/03/2019
Expenses £5,634 £5,943 £3,443 19/20 01/04/2019 31/03/2020
Profit Before Tax (£) -£4,634 -£443 £2,057
Yield before tax (%) -4.63% -0.44% 2.06%
Property Value £100,000
Mortgage Value £56,000 Interest 2.49%
Monthly Repayment £260.00
Repayment Number Year Opening Balance Loan Repayment Interest Charged Capital Repaid Extra Payment Closing Balance LTV% % Capital Outstanding
01/01/2018 1 1 £56,000 £260.00 £116 £144 £- £55,856 56% 99.74%
01/02/2018 2 1 £55,856 £260.00 £116 £144 £- £55,712 56% 99.49%
01/03/2018 3 1 £55,712 £260.00 £116 £144 £- £55,568 56% 99.23%
01/04/2018 4 1 £55,568 £260.00 £115 £145 £- £55,423 55% 98.97%
01/05/2018 5 1 £55,423 £260.00 £115 £145 £- £55,278 55% 98.71%
01/06/2018 6 1 £55,278 £260.00 £115 £145 £- £55,133 55% 98.45%
01/07/2018 7 1 £55,133 £260.00 £114 £146 £- £54,987 55% 98.19%
01/08/2018 8 1 £54,987 £260.00 £114 £146 £- £54,841 55% 97.93%
01/09/2018 9 1 £54,841 £260.00 £114 £146 £- £54,695 55% 97.67%
01/10/2018 10 1 £54,695 £260.00 £113 £147 £- £54,548 55% 97.41%
01/11/2018 11 1 £54,548 £260.00 £113 £147 £- £54,402 54% 97.15%
01/12/2018 12 1 £54,402 £260.00 £113 £147 £- £54,255 54% 96.88%
01/01/2019 13 2 £54,255 £260.00 £113 £147 £- £54,107 54% 96.62%
01/02/2019 14 2 £54,107 £260.00 £112 £148 £- £53,959 54% 96.36%
01/03/2019 15 2 £53,959 £260.00 £112 £148 £- £53,811 54% 96.09%
01/04/2019 16 2 £53,811 £260.00 £112 £148 £- £53,663 54% 95.83%
01/05/2019 17 2 £53,663 £260.00 £111 £149 £- £53,514 54% 95.56%
01/06/2019 18 2 £53,514 £260.00 £111 £149 £- £53,365 53% 95.30%
01/07/2019 19 2 £53,365 £260.00 £111 £149 £- £53,216 53% 95.03%
01/08/2019 20 2 £53,216 £260.00 £110 £150 £- £53,067 53% 94.76%
01/09/2019 21 2 £53,067 £260.00 £110 £150 £- £52,917 53% 94.49%
01/10/2019 22 2 £52,917 £260.00 £110 £150 £- £52,767 53% 94.23%
01/11/2019 23 2 £52,767 £260.00 £109 £151 £- £52,616 53% 93.96%
01/12/2019 24 2 £52,616 £260.00 £109 £151 £- £52,465 52% 93.69%
01/01/2020 25 3 £52,465 £260.00 £109 £151 £- £52,314 52% 93.42%
01/02/2020 26 3 £52,314 £260.00 £109 £151 £- £52,163 52% 93.15%
01/03/2020 27 3 £52,163 £260.00 £108 £152 £- £52,011 52% 92.88%
01/04/2020 28 3 £52,011 £260.00 £108 £152 £- £51,859 52% 92.60%
01/05/2020 29 3 £51,859 £260.00 £108 £152 £- £51,706 52% 92.33%
01/06/2020 30 3 £51,706 £260.00 £107 £153 £- £51,554 52% 92.06%
01/07/2020 31 3 £51,554 £260.00 £107 £153 £- £51,401 51% 91.79%
01/08/2020 32 3 £51,401 £260.00 £107 £153 £- £51,247 51% 91.51%
01/09/2020 33 3 £51,247 £260.00 £106 £154 £- £51,094 51% 91.24%
01/10/2020 34 3 £51,094 £260.00 £106 £154 £- £50,940 51% 90.96%
01/11/2020 35 3 £50,940 £260.00 £106 £154 £- £50,785 51% 90.69%
01/12/2020 36 3 £50,785 £260.00 £105 £155 £- £50,631 51% 90.41%
01/01/2021 37 4 £50,631 £260.00 £105 £155 £- £50,476 50% 90.14%
01/02/2021 38 4 £50,476 £260.00 £105 £155 £- £50,321 50% 89.86%
01/03/2021 39 4 £50,321 £260.00 £104 £156 £- £50,165 50% 89.58%
01/04/2021 40 4 £50,165 £260.00 £104 £156 £- £50,009 50% 89.30%
01/05/2021 41 4 £50,009 £260.00 £104 £156 £- £49,853 50% 89.02%
01/06/2021 42 4 £49,853 £260.00 £103 £157 £- £49,696 50% 88.74%
01/07/2021 43 4 £49,696 £260.00 £103 £157 £- £49,539 50% 88.46%
01/08/2021 44 4 £49,539 £260.00 £103 £157 £- £49,382 49% 88.18%
01/09/2021 45 4 £49,382 £260.00 £102 £158 £- £49,225 49% 87.90%
01/10/2021 46 4 £49,225 £260.00 £102 £158 £- £49,067 49% 87.62%
01/11/2021 47 4 £49,067 £260.00 £102 £158 £- £48,909 49% 87.34%
01/12/2021 48 4 £48,909 £260.00 £101 £159 £- £48,750 49% 87.05%
01/01/2022 49 5 £48,750 £260.00 £101 £159 £- £48,591 49% 86.77%
01/02/2022 50 5 £48,591 £260.00 £101 £159 £- £48,432 48% 86.49%
01/03/2022 51 5 £48,432 £260.00 £100 £160 £- £48,273 48% 86.20%
01/04/2022 52 5 £48,273 £260.00 £100 £160 £- £48,113 48% 85.92%
01/05/2022 53 5 £48,113 £260.00 £100 £160 £- £47,953 48% 85.63%
01/06/2022 54 5 £47,953 £260.00 £100 £160 £- £47,792 48% 85.34%
01/07/2022 55 5 £47,792 £260.00 £99 £161 £- £47,631 48% 85.06%
01/08/2022 56 5 £47,631 £260.00 £99 £161 £- £47,470 47% 84.77%
01/09/2022 57 5 £47,470 £260.00 £99 £161 £- £47,309 47% 84.48%
01/10/2022 58 5 £47,309 £260.00 £98 £162 £- £47,147 47% 84.19%
01/11/2022 59 5 £47,147 £260.00 £98 £162 £- £46,985 47% 83.90%
01/12/2022 60 5 £46,985 £260.00 £97 £163 £- £46,822 47% 83.61%
01/01/2023 61 6 £46,822 £260.00 £97 £163 £- £46,659 47% 83.32%
01/02/2023 62 6 £46,659 £260.00 £97 £163 £- £46,496 46% 83.03%
01/03/2023 63 6 £46,496 £260.00 £96 £164 £- £46,332 46% 82.74%
01/04/2023 64 6 £46,332 £260.00 £96 £164 £- £46,169 46% 82.44%
01/05/2023 65 6 £46,169 £260.00 £96 £164 £- £46,004 46% 82.15%
01/06/2023 66 6 £46,004 £260.00 £95 £165 £- £45,840 46% 81.86%
01/07/2023 67 6 £45,840 £260.00 £95 £165 £- £45,675 46% 81.56%
01/08/2023 68 6 £45,675 £260.00 £95 £165 £- £45,510 46% 81.27%
01/09/2023 69 6 £45,510 £260.00 £94 £166 £- £45,344 45% 80.97%
01/10/2023 70 6 £45,344 £260.00 £94 £166 £- £45,178 45% 80.68%
01/11/2023 71 6 £45,178 £260.00 £94 £166 £- £45,012 45% 80.38%
01/12/2023 72 6 £45,012 £260.00 £93 £167 £- £44,845 45% 80.08%
01/01/2024 73 7 £44,845 £260.00 £93 £167 £- £44,678 45% 79.78%
01/02/2024 74 7 £44,678 £260.00 £93 £167 £- £44,511 45% 79.48%
01/03/2024 75 7 £44,511 £260.00 £92 £168 £- £44,344 44% 79.18%
01/04/2024 76 7 £44,344 £260.00 £92 £168 £- £44,176 44% 78.88%
01/05/2024 77 7 £44,176 £260.00 £92 £168 £- £44,007 44% 78.58%
01/06/2024 78 7 £44,007 £260.00 £91 £169 £- £43,839 44% 78.28%
01/07/2024 79 7 £43,839 £260.00 £91 £169 £- £43,670 44% 77.98%
01/08/2024 80 7 £43,670 £260.00 £91 £169 £- £43,500 44% 77.68%
01/09/2024 81 7 £43,500 £260.00 £90 £170 £- £43,330 43% 77.38%
01/10/2024 82 7 £43,330 £260.00 £90 £170 £- £43,160 43% 77.07%
01/11/2024 83 7 £43,160 £260.00 £90 £170 £- £42,990 43% 76.77%
01/12/2024 84 7 £42,990 £260.00 £89 £171 £- £42,819 43% 76.46%
01/01/2025 85 8 £42,819 £260.00 £89 £171 £- £42,648 43% 76.16%
01/02/2025 86 8 £42,648 £260.00 £88 £172 £- £42,476 42% 75.85%
01/03/2025 87 8 £42,476 £260.00 £88 £172 £- £42,305 42% 75.54%
01/04/2025 88 8 £42,305 £260.00 £88 £172 £- £42,132 42% 75.24%
01/05/2025 89 8 £42,132 £260.00 £87 £173 £- £41,960 42% 74.93%
01/06/2025 90 8 £41,960 £260.00 £87 £173 £- £41,787 42% 74.62%
01/07/2025 91 8 £41,787 £260.00 £87 £173 £- £41,614 42% 74.31%
01/08/2025 92 8 £41,614 £260.00 £86 £174 £- £41,440 41% 74.00%
01/09/2025 93 8 £41,440 £260.00 £86 £174 £- £41,266 41% 73.69%
01/10/2025 94 8 £41,266 £260.00 £86 £174 £- £41,091 41% 73.38%
01/11/2025 95 8 £41,091 £260.00 £85 £175 £- £40,917 41% 73.07%
01/12/2025 96 8 £40,917 £260.00 £85 £175 £- £40,742 41% 72.75%
01/01/2026 97 9 £40,742 £260.00 £85 £175 £- £40,566 41% 72.44%
01/02/2026 98 9 £40,566 £260.00 £84 £176 £- £40,390 40% 72.13%
01/03/2026 99 9 £40,390 £260.00 £84 £176 £- £40,214 40% 71.81%
01/04/2026 100 9 £40,214 £260.00 £83 £177 £- £40,038 40% 71.50%
01/05/2026 101 9 £40,038 £260.00 £83 £177 £- £39,861 40% 71.18%
01/06/2026 102 9 £39,861 £260.00 £83 £177 £- £39,683 40% 70.86%
01/07/2026 103 9 £39,683 £260.00 £82 £178 £- £39,506 40% 70.55%
01/08/2026 104 9 £39,506 £260.00 £82 £178 £- £39,328 39% 70.23%
01/09/2026 105 9 £39,328 £260.00 £82 £178 £- £39,149 39% 69.91%
01/10/2026 106 9 £39,149 £260.00 £81 £179 £- £38,971 39% 69.59%
01/11/2026 107 9 £38,971 £260.00 £81 £179 £- £38,791 39% 69.27%
01/12/2026 108 9 £38,791 £260.00 £80 £180 £- £38,612 39% 68.95%
01/01/2027 109 10 £38,612 £260.00 £80 £180 £- £38,432 38% 68.63%
01/02/2027 110 10 £38,432 £260.00 £80 £180 £- £38,252 38% 68.31%
01/03/2027 111 10 £38,252 £260.00 £79 £181 £- £38,071 38% 67.98%
01/04/2027 112 10 £38,071 £260.00 £79 £181 £- £37,890 38% 67.66%
01/05/2027 113 10 £37,890 £260.00 £79 £181 £- £37,709 38% 67.34%
01/06/2027 114 10 £37,709 £260.00 £78 £182 £- £37,527 38% 67.01%
01/07/2027 115 10 £37,527 £260.00 £78 £182 £- £37,345 37% 66.69%
01/08/2027 116 10 £37,345 £260.00 £77 £183 £- £37,162 37% 66.36%
01/09/2027 117 10 £37,162 £260.00 £77 £183 £- £36,980 37% 66.03%
01/10/2027 118 10 £36,980 £260.00 £77 £183 £- £36,796 37% 65.71%
01/11/2027 119 10 £36,796 £260.00 £76 £184 £- £36,613 37% 65.38%
01/12/2027 120 10 £36,613 £260.00 £76 £184 £- £36,429 36% 65.05%
01/01/2028 121 11 £36,429 £260.00 £76 £184 £- £36,244 36% 64.72%
01/02/2028 122 11 £36,244 £260.00 £75 £185 £- £36,059 36% 64.39%
01/03/2028 123 11 £36,059 £260.00 £75 £185 £- £35,874 36% 64.06%
01/04/2028 124 11 £35,874 £260.00 £74 £186 £- £35,689 36% 63.73%
01/05/2028 125 11 £35,689 £260.00 £74 £186 £- £35,503 36% 63.40%
01/06/2028 126 11 £35,503 £260.00 £74 £186 £- £35,316 35% 63.06%
01/07/2028 127 11 £35,316 £260.00 £73 £187 £- £35,130 35% 62.73%
01/08/2028 128 11 £35,130 £260.00 £73 £187 £- £34,943 35% 62.40%
01/09/2028 129 11 £34,943 £260.00 £73 £187 £- £34,755 35% 62.06%
01/10/2028 130 11 £34,755 £260.00 £72 £188 £- £34,567 35% 61.73%
01/11/2028 131 11 £34,567 £260.00 £72 £188 £- £34,379 34% 61.39%
01/12/2028 132 11 £34,379 £260.00 £71 £189 £- £34,190 34% 61.05%
01/01/2029 133 12 £34,190 £260.00 £71 £189 £- £34,001 34% 60.72%
01/02/2029 134 12 £34,001 £260.00 £71 £189 £- £33,812 34% 60.38%
01/03/2029 135 12 £33,812 £260.00 £70 £190 £- £33,622 34% 60.04%
01/04/2029 136 12 £33,622 £260.00 £70 £190 £- £33,432 33% 59.70%
01/05/2029 137 12 £33,432 £260.00 £69 £191 £- £33,241 33% 59.36%
01/06/2029 138 12 £33,241 £260.00 £69 £191 £- £33,050 33% 59.02%
01/07/2029 139 12 £33,050 £260.00 £69 £191 £- £32,859 33% 58.68%
01/08/2029 140 12 £32,859 £260.00 £68 £192 £- £32,667 33% 58.33%
01/09/2029 141 12 £32,667 £260.00 £68 £192 £- £32,475 32% 57.99%
01/10/2029 142 12 £32,475 £260.00 £67 £193 £- £32,282 32% 57.65%
01/11/2029 143 12 £32,282 £260.00 £67 £193 £- £32,089 32% 57.30%
01/12/2029 144 12 £32,089 £260.00 £67 £193 £- £31,895 32% 56.96%
01/01/2030 145 13 £31,895 £260.00 £66 £194 £- £31,702 32% 56.61%
01/02/2030 146 13 £31,702 £260.00 £66 £194 £- £31,507 32% 56.26%
01/03/2030 147 13 £31,507 £260.00 £65 £195 £- £31,313 31% 55.92%
01/04/2030 148 13 £31,313 £260.00 £65 £195 £- £31,118 31% 55.57%
01/05/2030 149 13 £31,118 £260.00 £65 £195 £- £30,922 31% 55.22%
01/06/2030 150 13 £30,922 £260.00 £64 £196 £- £30,727 31% 54.87%
01/07/2030 151 13 £30,727 £260.00 £64 £196 £- £30,530 31% 54.52%
01/08/2030 152 13 £30,530 £260.00 £63 £197 £- £30,334 30% 54.17%
01/09/2030 153 13 £30,334 £260.00 £63 £197 £- £30,137 30% 53.82%
01/10/2030 154 13 £30,137 £260.00 £63 £197 £- £29,939 30% 53.46%
01/11/2030 155 13 £29,939 £260.00 £62 £198 £- £29,741 30% 53.11%
01/12/2030 156 13 £29,741 £260.00 £62 £198 £- £29,543 30% 52.76%
01/01/2031 157 14 £29,543 £260.00 £61 £199 £- £29,344 29% 52.40%
01/02/2031 158 14 £29,344 £260.00 £61 £199 £- £29,145 29% 52.04%
01/03/2031 159 14 £29,145 £260.00 £60 £200 £- £28,946 29% 51.69%
01/04/2031 160 14 £28,946 £260.00 £60 £200 £- £28,746 29% 51.33%
01/05/2031 161 14 £28,746 £260.00 £60 £200 £- £28,545 29% 50.97%
01/06/2031 162 14 £28,545 £260.00 £59 £201 £- £28,345 28% 50.62%
01/07/2031 163 14 £28,345 £260.00 £59 £201 £- £28,143 28% 50.26%
01/08/2031 164 14 £28,143 £260.00 £58 £202 £- £27,942 28% 49.90%
01/09/2031 165 14 £27,942 £260.00 £58 £202 £- £27,740 28% 49.54%
01/10/2031 166 14 £27,740 £260.00 £58 £202 £- £27,537 28% 49.17%
01/11/2031 167 14 £27,537 £260.00 £57 £203 £- £27,334 27% 48.81%
01/12/2031 168 14 £27,334 £260.00 £57 £203 £- £27,131 27% 48.45%
01/01/2032 169 15 £27,131 £260.00 £56 £204 £- £26,927 27% 48.08%
01/02/2032 170 15 £26,927 £260.00 £56 £204 £- £26,723 27% 47.72%
01/03/2032 171 15 £26,723 £260.00 £55 £205 £- £26,519 27% 47.35%
01/04/2032 172 15 £26,519 £260.00 £55 £205 £- £26,314 26% 46.99%
01/05/2032 173 15 £26,314 £260.00 £55 £205 £- £26,108 26% 46.62%
01/06/2032 174 15 £26,108 £260.00 £54 £206 £- £25,903 26% 46.25%
01/07/2032 175 15 £25,903 £260.00 £54 £206 £- £25,696 26% 45.89%
01/08/2032 176 15 £25,696 £260.00 £53 £207 £- £25,490 25% 45.52%
01/09/2032 177 15 £25,490 £260.00 £53 £207 £- £25,283 25% 45.15%
01/10/2032 178 15 £25,283 £260.00 £52 £208 £- £25,075 25% 44.78%
01/11/2032 179 15 £25,075 £260.00 £52 £208 £- £24,867 25% 44.41%
01/12/2032 180 15 £24,867 £260.00 £52 £208 £- £24,659 25% 44.03%
01/01/2033 181 16 £24,659 £260.00 £51 £209 £- £24,450 24% 43.66%
01/02/2033 182 16 £24,450 £260.00 £51 £209 £- £24,241 24% 43.29%
01/03/2033 183 16 £24,241 £260.00 £50 £210 £- £24,031 24% 42.91%
01/04/2033 184 16 £24,031 £260.00 £50 £210 £- £23,821 24% 42.54%
01/05/2033 185 16 £23,821 £260.00 £49 £211 £- £23,610 24% 42.16%
01/06/2033 186 16 £23,610 £260.00 £49 £211 £- £23,399 23% 41.78%
01/07/2033 187 16 £23,399 £260.00 £49 £211 £- £23,188 23% 41.41%
01/08/2033 188 16 £23,188 £260.00 £48 £212 £- £22,976 23% 41.03%
01/09/2033 189 16 £22,976 £260.00 £48 £212 £- £22,763 23% 40.65%
01/10/2033 190 16 £22,763 £260.00 £47 £213 £- £22,551 23% 40.27%
01/11/2033 191 16 £22,551 £260.00 £47 £213 £- £22,337 22% 39.89%
01/12/2033 192 16 £22,337 £260.00 £46 £214 £- £22,124 22% 39.51%
01/01/2034 193 17 £22,124 £260.00 £46 £214 £- £21,910 22% 39.12%
01/02/2034 194 17 £21,910 £260.00 £45 £215 £- £21,695 22% 38.74%
01/03/2034 195 17 £21,695 £260.00 £45 £215 £- £21,480 21% 38.36%
01/04/2034 196 17 £21,480 £260.00 £45 £215 £- £21,265 21% 37.97%
01/05/2034 197 17 £21,265 £260.00 £44 £216 £- £21,049 21% 37.59%
01/06/2034 198 17 £21,049 £260.00 £44 £216 £1 £20,832 21% 37.20%
01/07/2034 199 17 £20,832 £260.00 £43 £217 £2 £20,613 21% 36.81%
01/08/2034 200 17 £20,613 £260.00 £43 £217 £3 £20,393 20% 36.42%
01/09/2034 201 17 £20,393 £260.00 £42 £218 £4 £20,171 20% 36.02%
01/10/2034 202 17 £20,171 £260.00 £42 £218 £5 £19,948 20% 35.62%
01/11/2034 203 17 £19,948 £260.00 £41 £219 £6 £19,723 20% 35.22%
01/12/2034 204 17 £19,723 £260.00 £41 £219 £7 £19,497 19% 34.82%
01/01/2035 205 18 £19,497 £260.00 £40 £220 £8 £19,270 19% 34.41%
01/02/2035 206 18 £19,270 £260.00 £40 £220 £9 £19,041 19% 34.00%
01/03/2035 207 18 £19,041 £260.00 £40 £220 £10 £18,810 19% 33.59%
01/04/2035 208 18 £18,810 £260.00 £39 £221 £11 £18,578 19% 33.18%
01/05/2035 209 18 £18,578 £260.00 £39 £221 £12 £18,345 18% 32.76%
01/06/2035 210 18 £18,345 £260.00 £38 £222 £13 £18,110 18% 32.34%
01/07/2035 211 18 £18,110 £260.00 £38 £222 £14 £17,873 18% 31.92%
01/08/2035 212 18 £17,873 £260.00 £37 £223 £15 £17,635 18% 31.49%
01/09/2035 213 18 £17,635 £260.00 £37 £223 £16 £17,396 17% 31.06%
01/10/2035 214 18 £17,396 £260.00 £36 £224 £17 £17,155 17% 30.63%
01/11/2035 215 18 £17,155 £260.00 £36 £224 £18 £16,913 17% 30.20%
01/12/2035 216 18 £16,913 £260.00 £35 £225 £19 £16,669 17% 29.77%????
Edited by mikeh501 on Monday 5th February 19:38
thenortherner said:
Apologies in advance for the long post...
I’ve created a few threads recently on my personal financial situation with a view to thinking mid/long term and how to make the best use of my money. I appreciate the help given and I’ve taken it on board. I’ve even explored the idea of selling up and living on a houseboat(!) mortgage free - but the sums made that a less than viable option due to running cost and depreciation, despite the savings to be had and the benefit of having zero debt. It’s still something I’d like to do long-term potentially but maybe in retirement. Anyhow…
I’d taken on the advice given a few weeks ago; I’ve now paid in full a personal loan taken out to buy a new car last year, opened a LISA with HL putting in £1.7K across 3 funds. And I’ve signed up to a work’s pension who match up to 3.5% salary contribution. I now pay in 9%.
Ref the latter point, I have the opportunity to enter a salary sacrifice agreement and my employer will add 100% of what they save in NI contribution to the pension but I’m holding off on this now for the reasons below.
In summary:
I’m in my early 30s
Salary of 50K
No financial commitments/loans/HP/leases etc
My only (non-mortgage) debt is £4K on a credit card which is interest free for 3 years so I’m in no rush to pay off
No savings other than £1.7K in the LISA
Pension pot of £4K (bugger all, I know!)
Everything else is owned outright
My house is worth £140K and I owe £82K, so 42% equity.
As with the previous thread, I’ve worked hard over the past year since buying my first home to get myself financially straight and I’m looking at what I spend each month in detail and where it goes. I’ve become a bit anxious over the future and retirement and I’m looking for ways to make my money grow.
At the moment my mortgage payment is £398 and I now roughly overpay by £350 a month. This’ll see my mortgage cleared in 10 years. I now also now stick £500+ a month into my LISA.
I’m considering taking some of the equity out of my home to use to fund a buy to let. I’ve spoken to the mortgage provider and I’ve passed all the affordability
A few weeks ago you were saying that you are debt averse and wanted to get rid of your mortgage as quickly as possible. What’s changed that you now want to triple your outstanding mortgage debt ?I’ve created a few threads recently on my personal financial situation with a view to thinking mid/long term and how to make the best use of my money. I appreciate the help given and I’ve taken it on board. I’ve even explored the idea of selling up and living on a houseboat(!) mortgage free - but the sums made that a less than viable option due to running cost and depreciation, despite the savings to be had and the benefit of having zero debt. It’s still something I’d like to do long-term potentially but maybe in retirement. Anyhow…
I’d taken on the advice given a few weeks ago; I’ve now paid in full a personal loan taken out to buy a new car last year, opened a LISA with HL putting in £1.7K across 3 funds. And I’ve signed up to a work’s pension who match up to 3.5% salary contribution. I now pay in 9%.
Ref the latter point, I have the opportunity to enter a salary sacrifice agreement and my employer will add 100% of what they save in NI contribution to the pension but I’m holding off on this now for the reasons below.
In summary:
I’m in my early 30s
Salary of 50K
No financial commitments/loans/HP/leases etc
My only (non-mortgage) debt is £4K on a credit card which is interest free for 3 years so I’m in no rush to pay off
No savings other than £1.7K in the LISA
Pension pot of £4K (bugger all, I know!)
Everything else is owned outright
My house is worth £140K and I owe £82K, so 42% equity.
As with the previous thread, I’ve worked hard over the past year since buying my first home to get myself financially straight and I’m looking at what I spend each month in detail and where it goes. I’ve become a bit anxious over the future and retirement and I’m looking for ways to make my money grow.
At the moment my mortgage payment is £398 and I now roughly overpay by £350 a month. This’ll see my mortgage cleared in 10 years. I now also now stick £500+ a month into my LISA.
I’m considering taking some of the equity out of my home to use to fund a buy to let. I’ve spoken to the mortgage provider and I’ve passed all the affordability
Asides from tripling your debt - you have zero savings to fall back on or service your mortgages
Secondly are you aware of the new BTL tax changes on 40% tax payers ?
https://www.google.co.uk/amp/www.telegraph.co.uk/i...
Only coming into affect this year and therefore likely a lot of BTL flats/houses will come on the market as landlords realise they will be losing money in a monthly basis once full tax takes effect . This will most likely push prices down slightly that’s asides from interest rate rises that the market expects this year .
House prices in London and parts of the South are now falling or at least stalling so it’s only a matter of time before the rest of the UK catch the cold and the market slows esp with Brexit on horizon .
Personally I would save 6 months outgoings in an easy access savings account for emergencies/ unexpected things and then save a bit more in to your stocks and shares isa - before you consider BTL when there’s no rush to dive in with so many current uncertainties.
jonny70 said:
A few weeks ago you were saying that you are debt averse and wanted to get rid of your mortgage as quickly as possible. What’s changed that you now want to triple your outstanding mortgage debt ?
Asides from tripling your debt - you have zero savings to fall back on or service your mortgages
Secondly are you aware of the new BTL tax changes on 40% tax payers ?
https://www.google.co.uk/amp/www.telegraph.co.uk/i...
Only coming into affect this year and therefore likely a lot of BTL flats/houses will come on the market as landlords realise they will be losing money in a monthly basis once full tax takes effect . This will most likely push prices down slightly that’s asides from interest rate rises that the market expects this year .
House prices in London and parts of the South are now falling or at least stalling so it’s only a matter of time before the rest of the UK catch the cold and the market slows esp with Brexit on horizon .
Personally I would save 6 months outgoings in an easy access savings account for emergencies/ unexpected things and then save a bit more in to your stocks and shares isa - before you consider BTL when there’s no rush to dive in with so many current uncertainties.
True, I did say that but BTL was suggested by others as something to consider, so I'm weighing up options and showing some diligence. The numbers appear to show there's probably a bit too much risk in doing it. And you're right, I don't like too much risk.Asides from tripling your debt - you have zero savings to fall back on or service your mortgages
Secondly are you aware of the new BTL tax changes on 40% tax payers ?
https://www.google.co.uk/amp/www.telegraph.co.uk/i...
Only coming into affect this year and therefore likely a lot of BTL flats/houses will come on the market as landlords realise they will be losing money in a monthly basis once full tax takes effect . This will most likely push prices down slightly that’s asides from interest rate rises that the market expects this year .
House prices in London and parts of the South are now falling or at least stalling so it’s only a matter of time before the rest of the UK catch the cold and the market slows esp with Brexit on horizon .
Personally I would save 6 months outgoings in an easy access savings account for emergencies/ unexpected things and then save a bit more in to your stocks and shares isa - before you consider BTL when there’s no rush to dive in with so many current uncertainties.
I'd probably be more willing to take the plunge and a risk if I could put more equity into the BTL so there'd be no real cost to cover if it were to be vacant for a while. But the returns don't make the risk look worth it in my case.
I'd read about the changes in tax, but even before those come into play and the old system remains, even partially, I'd stand to make little or nothing and just hope the property price increases over time.
I'll wait this one out I think.
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