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  • FIRST POST
    • PusscatT
    • By PusscatT 16th Oct 16, 2:15 PM
    • 34Posts
    • 131Thanks
    PusscatT
    It's a sprint not a marathon!
    • #1
    • 16th Oct 16, 2:15 PM
    It's a sprint not a marathon! 16th Oct 16 at 2:15 PM
    So, this is my journey to paying off one of my mortgages (!) in 4 years. For me it is a sprint, as this mortgage is a buy-to-let and, as a higher rate taxpayer, I will be hit hard by the tax changes coming next April. Here is a bit about me / us and the grand plan...

    I work full-time and have a home I live in with the family and a cottage that is rented out. Mortgage info is as follows:

    Main Home
    Value: Approx £375,000
    Mortgage: £202,000
    Mortgage rate: Offset lifetime tracker 0.6% above BoE base rate so currently 0.85%.
    Payment type: Repayment (until 2032)
    Monthly payment: £996
    Overpayments: Unlimited, no penalties

    BTL Cottage
    Value: Approx £215,000
    Mortgage: £134,400
    Mortgage rate: 3.09% fixed for 5 years until 2021.
    Payment type: Interest only on 32 year term.
    Monthly payment: £346
    Rental income: £800 pcm
    Overpayments: Unlimited, no penalties

    With the interest rates on savings now pitiful and such a cheap mortgage deal on our main home, we have decided to throw as much money as possible at the BTL in order to have it paid off completely by the end of 2020.
    As I'm the money person in our house, this will be my story I guess, although I won't be able to do this on my own! I look forward to sharing my journey with anyone interested enough to read it.

    Pusscat.
    Save
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    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
Page 2
    • greent
    • By greent 23rd Feb 17, 9:41 AM
    • 6,065 Posts
    • 61,305 Thanks
    greent
    Just discovered your diary, Puss, from a post you made on Caz's diary We're starting to tackle the BTL here now - having merrily sat with it as I/F for the tax benefits - pesky changing rules! Small OPs made last year to start us off but I've just paid £1800 out this week for some rewiring and the new electrical certificate - which has delayed my next OP but such is life!

    Following x
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) Bal 01/09 £124616 01/10 £104927 01/11 £89873 01/12 £76317 01/13 £52546 01/14 £35356 01/15 £12133 07/15 £NIL
    Next: BTL Mtge 12/16 £69786. 2017 OPs (#18) £4070/£3286
    Net sales 2017 £763.00/£500 PAYDOX17 £10787/£10k Decluttered 1284/2017 items
    • try harder
    • By try harder 23rd Feb 17, 11:25 AM
    • 461 Posts
    • 1,469 Thanks
    try harder
    Wow great overpayments especially as you had to pay for roof repairs ,well done .
    • PusscatT
    • By PusscatT 12th Mar 17, 1:00 PM
    • 34 Posts
    • 131 Thanks
    PusscatT
    Thanks greent and try harder, yes it's a pain when you have to shell out for house repairs whilst making overpayments. The tenants don't pay extra to make up for it!

    The tax changes are catching out a lot of people. I was pleased to see an advisory leaflet in my BTL mortgage statement a few week's back, outlining exactly what's happening and how you could be affected. Although we're clued up on the changes and how they affect us (well me, really as DH is a lower rate taxpayer so no difference for him), many don't and will get a nasty surprise come next year's self-assessment.
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • pennystretcher
    • By pennystretcher 12th Mar 17, 2:17 PM
    • 285 Posts
    • 1,306 Thanks
    pennystretcher
    Keep up the good work! It'll be worth it in the end. Can't wait for my MFW date which at the moment should be Feb 2018. (Tied in a deal that ends then and currently doing a round robin in savings that have better interest than paying off mortgage, patience, patience )
    MFW June 2017 £890 (almost there!!!)
    • PusscatT
    • By PusscatT 13th Mar 17, 10:25 AM
    • 34 Posts
    • 131 Thanks
    PusscatT
    Thanks penny. I made an overpayment today of £1703.04 which was an attempt to get the total owed to an even number, but was scuppered by something and it's still an odd number! It doesn't matter but wanted to be at a straight £124k. Ah well, it does all count!


    I've set up my new SIPP and that starts in a couple of days so I will at least get a month of tax rebate before the end of the financial year. It also means that if something wonderful happens and I land a stack of money from somewhere, I can now carry the rest of this year's pension allowance over for up to 3 years. Not expecting anything but maybe there's a rich, long-lost uncle hiding somewhere!


    Still doing well on not spending too much. Day to day I don't spend a lot, no coffees or bought lunches but I've got some stuff to do on home which means I'll be paying out for more building work. Head down, nose to the grindstone and all that!



    Penny, Feb 18 for MFW is great. So close...!

    Pusscat.
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • try harder
    • By try harder 21st Mar 17, 10:05 AM
    • 461 Posts
    • 1,469 Thanks
    try harder
    Thats a great overpayment in just over 6 months and well done on the car insurance ,what a difference in price.
    • PusscatT
    • By PusscatT 9th May 17, 12:59 PM
    • 34 Posts
    • 131 Thanks
    PusscatT
    So, missed an overpayment in April due to bills at home, but just made a £1500 overpay today! New tenants move in the cottage in a couple of weeks and we're coming up to doing the gas safety check etc so there will be a few additional costs over the coming weeks. Really pleased that we have no void period between tenants as this really eats into our savings and reduces the amount available to overpay. I think with a real push over the next couple of months I can get the mortgage below £120k, which is just over a 50% loan to value. Had a small pay increase at work so that's going towards the mortgage, I will not spend it on handbags!!
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
    • PusscatT
    • By PusscatT 25th Jun 17, 7:43 AM
    • 34 Posts
    • 131 Thanks
    PusscatT
    Well things went a bit pear shaped with the new tenants, but now have new new ones in the cottage so money coming in. Made an overpayment of £1500 today, bringing the total down to just under £121k. We thought we were going to have to replace some of the windows (at vast expense because it's listed and in a conservation area), but my lovely joiner is making new sills and some minor repairs. Don't have a price yet but it'll be far less than replacements and a lot less hassle and paperwork!
    Money saving for the overpayments is hard at the moment. It's holiday season and insurance renewal as well as gas safety check time. All should be well and I'll shop around for the insurance but could really do with a lump sum from somewhere to help me along!
    MFW Aug16/ £134,400 Sep16/ £132,900 Oct16/ £130,900 Nov16/ £129,731.15 Jan17/ £127,735.84 Feb17/ £125,701.24 Mar17/ £123,997.26 May17/ £122,493.31 Jun17/ £120,985.20
    Save
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