Chance to get rid of the mortgage
Discussion
bompey said:
Pay off the mortgage, then whatever the mortgage payment was pay that into your pension as increased contributions. Make sure you do self assessment to claim the additional tax back or do it via your employer.
i'm a postie and currently maxing out the pension , any more i put in won't effect what royal mail add.£27k remaining on the mortgage, and you're repaying £800/mo at the mo? So you're only bringing repayment forward by about three years - how much interest would you be paying in that time? Less than a couple of grand.
So it might well be worth leaving the mortgage going, and doing something else with the money - if there's any spendiness you fancy.
So it might well be worth leaving the mortgage going, and doing something else with the money - if there's any spendiness you fancy.
egor110 said:
bompey said:
Pay off the mortgage, then whatever the mortgage payment was pay that into your pension as increased contributions. Make sure you do self assessment to claim the additional tax back or do it via your employer.
i'm a postie and currently maxing out the pension , any more i put in won't effect what royal mail add.With only a few years left I'd be investing the 25k personally. Inflation is likely to increase a lot which will help take care of your debt.. provided wages go up. If they don't, decide then. Your 800 per month is probably mostly paying off principle at this stage anyway.
terrydacktal said:
Really? Have you even been on holiday in the last 10 years?
£1,000 - Flights from London to Bali for two people (see skyscanner)£2,800 - 7 nights in a one bedroom villa with private pool in 5-star Chedi Club Tanah Gajah with private butler included (http://www.ghmhotels.com/en/tanah-gajah/)
£1,200 - spending money
OK, I assumed no kids but none have been mentioned by the OP.
mcbook said:
terrydacktal said:
Really? Have you even been on holiday in the last 10 years?
£1,000 - Flights from London to Bali for two people (see skyscanner)£2,800 - 7 nights in a one bedroom villa with private pool in 5-star Chedi Club Tanah Gajah with private butler included (http://www.ghmhotels.com/en/tanah-gajah/)
£1,200 - spending money
OK, I assumed no kids but none have been mentioned by the OP.
Our last big holiday was Maldives 4 years ago think that came in about 5k for the 2 of us A.I for 2 weeks.
terrydacktal said:
mcbook said:
£5,000 on a once-in-a-lifetime holiday
Really? Have you even been on holiday in the last 10 years? TooMany2cvs said:
£27k remaining on the mortgage, and you're repaying £800/mo at the mo? So you're only bringing repayment forward by about three years - how much interest would you be paying in that time? Less than a couple of grand.
So it might well be worth leaving the mortgage going, and doing something else with the money - if there's any spendiness you fancy.
A couple of grand is a lot of money and not to be sniffed at. Free food for 1 person for an entire year, for example.So it might well be worth leaving the mortgage going, and doing something else with the money - if there's any spendiness you fancy.
And if the saved mortgage cash of ~£10,000 a year is invested in a good pension, that could give another £4,000-18,000 in bonus cash over 2 years (via tax relief and investment gains).
The road to wealth is paying off the mortgage.
Yipper said:
The road to wealth is paying off the mortgage.
the road to real wealth is having someone else pay the mortgage!! ie a rental property.depends on the area you could use the £25 as a deposit and get the rest as a BTL mortgage with the term matching the rental income so its close to a £0 input from you........
Could be more reflective of my personality than anything else (I certainly shouldn't be giving financial advice), but I love the idea of being mortgage free and having X amount extra per month. If nothing else it opens up options these are examples only but I always find options are great to have.
1. In true PH style sell the house, buy a classic Ferrari, rapidly go bankrupt maintaining it and get divorced, start a thread here asking where did it all go wrong.
2. Take a job closer to home, possibly less pay but less stress.
3. Consider early retirement.
4. Use the 'spare' cash to fund a business.
5. Sell the house and buy a boat and sail around the world
6. Sell the house and buy a nicer, cheaper house somewhere sunny with a tiny cost of living and relax
1. In true PH style sell the house, buy a classic Ferrari, rapidly go bankrupt maintaining it and get divorced, start a thread here asking where did it all go wrong.
2. Take a job closer to home, possibly less pay but less stress.
3. Consider early retirement.
4. Use the 'spare' cash to fund a business.
5. Sell the house and buy a boat and sail around the world
6. Sell the house and buy a nicer, cheaper house somewhere sunny with a tiny cost of living and relax
TwigtheWonderkid said:
terrydacktal said:
mcbook said:
£5,000 on a once-in-a-lifetime holiday
Really? Have you even been on holiday in the last 10 years? superlightr said:
the road to real wealth is having someone else pay the mortgage!! ie a rental property.
depends on the area you could use the £25 as a deposit and get the rest as a BTL mortgage with the term matching the rental income so its close to a £0 input from you........
Is this actually true ?depends on the area you could use the £25 as a deposit and get the rest as a BTL mortgage with the term matching the rental income so its close to a £0 input from you........
there are loads of posts re the change of the btl tax break ending so think i've missed the boat there.
egor110 said:
superlightr said:
the road to real wealth is having someone else pay the mortgage!! ie a rental property.
depends on the area you could use the £25 as a deposit and get the rest as a BTL mortgage with the term matching the rental income so its close to a £0 input from you........
Is this actually true ?depends on the area you could use the £25 as a deposit and get the rest as a BTL mortgage with the term matching the rental income so its close to a £0 input from you........
there are loads of posts re the change of the btl tax break ending so think i've missed the boat there.
As a rough rule of thumb, you won't get a BtL mortgage above 75% loan-to-value, for a start, and the lender will be looking at the rent covering at least 125% of the repayments. You can't offset mortgage repayments against the rent for income tax, and you can only offset the mortgage interest against basic rate income tax. Don't forget the 3% SDLT hike when you buy it, which'll pretty much wipe out the first year's income unless you've found some amazing deal.
So, yes, it can work - but it's not exactly foolproof. If you look at rental income only, BtL isn't any kind of jaw-droppingly astonishing investment, especially when you consider the hassles and how illiquid it is. So it's all down to how you see future house prices going... (and don't forget CGT there)
JagBox said:
TwigtheWonderkid said:
terrydacktal said:
mcbook said:
£5,000 on a once-in-a-lifetime holiday
Really? Have you even been on holiday in the last 10 years? No offence meant to anyone, but 2 weeks in the sun somewhere isn't really a holiday of a lifetime anymore - regardless of where it is. Back in the 80s it would have been.
Need to double that anyway for a couple on something that's really 'holiday of a lifetime' material.
egor110 said:
superlightr said:
the road to real wealth is having someone else pay the mortgage!! ie a rental property.
depends on the area you could use the £25 as a deposit and get the rest as a BTL mortgage with the term matching the rental income so its close to a £0 input from you........
Is this actually true ?depends on the area you could use the £25 as a deposit and get the rest as a BTL mortgage with the term matching the rental income so its close to a £0 input from you........
there are loads of posts re the change of the btl tax break ending so think i've missed the boat there.
http://www.futurepropertyauctions.co.uk/property_d...
...will end up spending £25k to get it on the rental market, and will bank £400pcm after costs.
(ps: I'm good at guesstimating)
rossub said:
No offence meant to anyone, but 2 weeks in the sun somewhere isn't really a holiday of a lifetime anymore - regardless of where it is. Back in the 80s it would have been.
Need to double that anyway for a couple on something that's really 'holiday of a lifetime' material.
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