2010 MF Wannabes

puddle96

No.66 here
Can't believe we've reached the last day of the first half of this challenge already.
I've had a glorious June. A weeks holiday, a big and expensive family celebration, moved someway to getting the leaking chimney fixed. The garden is both blooming and productive and the weather is still holding.
Nearly forgot the important bit - June's OP £2232.74

Little_Mama

No 20 reporting in.

Slower month so overpayment only £354.50, life getting in way at moment, must regain focus and get back on track! :eek:

Overpayments to date £3056.77.

Keep up the good work everyone. :T

LM

greent

173 here reporting in with the last OP for June of £165, bringing June's total OPs to £820 and YTD figure £2581.

This was an unexpected residual bonus payment from an old employer of DH's dating back to 2008 Not much - but that extra bit has now shaved another month off our end date

My next mini-targets are to be sub 95k and to get mtge repayment date of 12/2018 on my s/sht (currently 04/2019)

ekroys17

Hi everyone
No.93 reporting in.
My overpayment for this month has gone through another £662. My total OP to date is £5771, which is 96% of my 6K target.
My outstanding mortgage is now 109302.70.

I wonder if someone can help me, I have BTL apartment with a 71K IO mortgage, the rate is 5.79% SVR, so I will be targeted my OP to this mortgage after I have reached my home mortgage. My original plan was to sell the property after 3 years, but unfortunately the bubble burst!. So I have tried to get a better deal on the mortgage but they are all in the same region or charge rediculous fees. My question is does anyone know about making overpayments if this has any effect on the Capital Gains tax upon the sale. Ideas welcome

Keep up the good work guys and gals.

wantabetterlife

Hi Ekroys, as i understand it CGT is paid on the difference between what your property was worth when you bought it and what it sells for, therefore making overpayments shouldnt affect the CGT you would pay, if that makes sense.
Just to let you know, you are supposed to declare all rental income from a BTL property so that you pay tax on any profit. There is tax relief on the interest element of your mortgage payment, but if you begin making overpayments obviously your minimum interest payment would gradually reduce therefore increasing your profit margin from the rent and the tax you would have to pay...... Just something to consider. Congratulations on your o/p so far:j:j

froddington

No 128 - OP of £350 made today as it's pay day!

uzubairu

Total overpayments for June were £700.

It would have been a little bit more, but I sold a few high value items on eBay and I haven't transferred the money from my Paypal account.
I usually wait until the buyer leaves feedback before I class the money as mine to spend as I wish.

It should be a bit more next month, with the extra from the eBay sales and a little overtime.

gallygirl

wantabetterlife wrote: »

Hi Ekroys, as i understand it CGT is paid on the difference between what your property was worth when you bought it and what it sells for, therefore making overpayments shouldnt affect the CGT you would pay, if that makes sense.

Yes, that's right.

wantabetterlife wrote: »

Just to let you know, you are supposed to declare all rental income from a BTL property so that you pay tax on any profit. There is tax relief on the interest element of your mortgage payment, but if you begin making overpayments obviously your minimum interest payment would gradually reduce therefore increasing your profit margin from the rent and the tax you would have to pay...... Just something to consider. Congratulations on your o/p so far:j:j

I am not sure how it works on IO mortgages, whether you can OP on interest or just make a capital repayment? Either way, if you can make an OP and get them to reduce term so monthly payment stays the same you will still get the benefit of maximum relief on interest payments.

Hmmmmmm, if you could OP the interest could you then claim tax relief on OP :think:

greent

gallygirl wrote: »

I am not sure how it works on IO mortgages, whether you can OP on interest or just make a capital repayment? Either way, if you can make an OP and get them to reduce term so monthly payment stays the same you will still get the benefit of maximum relief on interest payments.

Hmmmmmm, if you could OP the interest could you then claim tax relief on OP :think:

Nope - with IO mtge if balance is less the payment will be less, whatever the term. Why pay BTL off? - minimises tax effect of rental income.....? I only plan on paying ours off when I sell it (and then shoving a lump sum on personal mtge )

wynnvegas

Morning Folks,

Relatively big day as we've managed to make our biggest overpayment in a while. After slaving away for nearly a year on as restrictive a budget as we could fashion and reasonably expect to stick to (termed "the dictatorship" by a less than enthusiastic girlfriend) and having had a couple of strokes of good fortune with a small inheritance and a wee bit of elusive overtime in the form of exam marking, the mortgage now officially has only four more payments and 124 days remaining.

Overpayment for July officially comes in at £2,958.92. It's so tempting to lop another £2000.01 off to bring it to four figures today but it might not go unnoticed that we'd be eschewing gambling completely and eating value deals from the dollar menu at McDonalds every day of our holiday!!

Cheers,

Billy (#17)