What should I do, House 1,

[Register1]

Hi all,

I am coming to the conclusion of this mortgage.
I took it out over 5 years, with a massive deposit.

The monthly repayments are 650 per month.
I have a no penalty over-payment allowance.
I make the 650 up to 1000 by adding in a supplement payment of 350.
Then towards the end of the month I have a spare 500 which also go's to the mortgage.
At this rate, it will be paid off by December 2017 / January 2018.

I am also managing to put 500 away every month into a savings account, for a deposit on next house.

Now here is the problem.
This house will be worth circa 140k at end of mortgage.
The next one I plan will be valued at circa 170k, so would need minimum of say 20k deposit, which would hopefully come from the 500 savings every month, and then also throw in the 650 + the 350 + 500 (1500) what I wouldn't be paying when this current mortgage finishes.
So could save around 1500 per month.

I don't know if I should revert back to just paying the standard 650 every month, and put all my extra into the savings.
or
forget the savings for now, and put all the extra into the mortgage.

I plan to rent out this current house for 550 per month upon completion of mortgage.

Any one care to suggest what they would do in my boots?
I have 2000 in the savings at the moment, increasing by 500 per month.

R1

[Register1]

Wow,

Thanks.

So many good and alternative replies.

So it looks like I should not put house number 2 in my name, as far as the stamp duty is. ie 900 GBP to 6000GBP

The ultimate end goal is to have number 2 house paid off as soon as possible.
Take an income from both rented properties.

Then we would go back abroad (China) and rent, and drink beer, and teach English
Wife will work a good job in China (Chinese girl)

This current house is just in my name, the possible plan is to just buy the second house in my wife's name, she as a "first time buyer"

I am so "not knowing" our best way forward.

R1

[Register1]

Rangeroverover said:

Register1 said:

Wow,

Thanks.

So many good and alternative replies.

So it looks like I should not put house number 2 in my name, as far as the stamp duty is. ie 900 GBP to 6000GBP

The ultimate end goal is to have number 2 house paid off as soon as possible.
Take an income from both rented properties.

Then we would go back abroad (China) and rent, and drink beer, and teach English
Wife will work a good job in China (Chinese girl)

This current house is just in my name, the possible plan is to just buy the second house in my wife's name, she as a "first time buyer"

I am so "not knowing" our best way forward.

R1

Wait for the autumn statement, jungle drums seem to suggest that SDLT changes are likely to happen, if they don't you won't have lost out.

I would be building up large as poss deposit rather than overpaying on the current one

Thanks,

Earlier in the thread, a poster commented that as a married couple we would be treated as a single entity where stamp duty is concerned.
The plan was, and still is to a degree, that this house be in my sole name, and the second on in my wife's sole name.

Yes we do live in the first house as husband and wife, but will plan to rent out this first one to a work colleague, and we will move into house number 2, in a nicer area.

So with a larger savings, I guess I could swing it either way.

1. Pay off the first house
2. Deposit for second

Any idea how would Nationwide view this if I approached them for a second mort., when the first one still running?

R1

Edited by Register1 on Thursday 20th October 16:02