museumworker's quest to consign mortgage to history!

museumworker

First of all, a big THANK YOU to you wonderful ladies for posting. I read them earlier from work, and it really meant a lot to get such useful advice and steers so quickly, and from people who have experience of this sort of thing. Really, you are an incredible bunch :A:A:A

I spoke to FD today - can't get the OPs back as deposit, also extremely unlikely they would extend our mortgage as according to their initial checks, a couple on our income would get loaned £175K. Seeing as our mortgage is £181K ish at present, I doubt we would get much more out of them

Called the estate agent selling the property - it is unmortgageable due to lack of kitchen/bathroom. There are also 3 offers already on the table :(:(. As we are unlikely to get £100K out of FD, and couldn't get a mortgage even if could claw together the cash, I think this property is out of our reach. I am very sad about this, and may have a little cry later. I was getting ahead of myself, and trying to run before I could walk.

However, I am trying to consider the positive aspects from this:
* made me realise how much both OH and I want the second home in the country, and sooner rather than later. This can be used as a powerful incentive for us.
* made me realise the ideal situation is to have this place MF, so could buy elsewhere and use this as an income. Ideally we would buy other place outright
* made me realise that OPing the mortgage is not flexible, and can't claw back so need to be certain of what you are doing, and in what timeframe
* made me realise we need a cash lump sum to purchase the hovel, rather than a deposit or even a mortgage offer
* I need to educate myself more about the holiday let market, and put together a business plan before finding the right property.
* don't go on rightmove unless you have the money in your pocket as you will be disappointed!!!

Later I am going to look at our MF plans with OH and set a timeframe for us. I'm currently thinking to continue to pay down this mortgage, with the aim of getting to £95K when remortgage in 5 years. Then, remortgage for £200K but with an offset mortgage. I assume this means I would then have c£100K that we could lay our hands on when needed, but would be kept in account and effectively mean I had a smaller mortgage when not in use, IYSWIM?
I will timetable working on the business plan for 4 years time, which would be one year before the end of our fixed rate.

museumworker

p.s. I have made another OP of £15 from Ama$on sales, and have received £5.40 worth of refunds from London Transport .

gallygirl

museumworker wrote: »

Later I am going to look at our MF plans with OH and set a timeframe for us. I'm currently thinking to continue to pay down this mortgage, with the aim of getting to £95K when remortgage in 5 years. Then, remortgage for £200K but with an offset mortgage. I assume this means I would then have c£100K that we could lay our hands on when needed, but would be kept in account and effectively mean I had a smaller mortgage when not in use, IYSWIM?
I will timetable working on the business plan for 4 years time, which would be one year before the end of our fixed rate.

And in the next 5 years you're going to stay off rightmove are you :rotfl:. I would leave my options open by saving as hard as I could rather than OPing if you can't get it back. That way, in a few years if something turns up you would have a lump sum, and could maybe pay the balance on a credit card

"Skulks off, leaving indecision & confusion. My work here is done" :rotfl:

cha97michelle

Aw. From to in only a few short posts.

My ILs have a 2nd place like this which is where they let us all go for short breaks. It is very nice, but an expensive luxury. They find they need 2 sets of lots of things as it is mainly them using them, so extra clothes that live there, pots, pans, plates, etc. Otherwise you end up carting stuff around all the time and needing something at one place when you are at the other.

They've also had problems with damp when it has been empty when they can't get down, as the guttering all leaked down the wall into the cellar and no-one was there to notice.

Gally, being nosey as I am I had to have a little looksie at your place too. Lovely. I can understand why you would want to escape there as it looks idylic. You might not want to leave the link up long though chick with personal number on. Just being cautious knowing I have had so many lurkers on my own thread, all nice so far, but those are the ones who delurked. ;)

museumworker

gallygirl wrote: »

And in the next 5 years you're going to stay off rightmove are you :rotfl:. I would leave my options open by saving as hard as I could rather than OPing if you can't get it back. That way, in a few years if something turns up you would have a lump sum, and could maybe pay the balance on a credit card

"Skulks off, leaving indecision & confusion. My work here is done" :rotfl:

I think I will have to get some sort of electronic bar from rightmove! As the saying goes, don't go shopping when you're hungry!

Went on a lovely walk with OH after work yesterday, 1 1/2 hours going through the local marshes and canal. We talked quite a bit and I suggested the scenario I was considering (remortgaging for £200K in offset in 5 years) and that you thought of (lump sum on standby). He really firmly wants to be MF before getting another place, and that we would be better off being MF and then saving a lump sum - which if all things stay the same mean we would be putting away £30K a year in this years money, so might mean only 3-5 years before we can buy outright. Plus the day to day expenses were more than we anticipated, so at present it is out of our reach anyway. So indecision and confusion are put on hold (until we remortgage that is :rotfl:).

cha97michelle wrote: »

Aw. From to in only a few short posts.
Gally, being nosey as I am I had to have a little looksie at your place too. Lovely. I can understand why you would want to escape there as it looks idylic. You might not want to leave the link up long though chick with personal number on. Just being cautious knowing I have had so many lurkers on my own thread, all nice so far, but those are the ones who delurked. ;)

I had to nosy too, it is a lovely place, the local town and beaches look fantastic! I will consider it next time we want a European break. Is it that price in the peak season? And do you really speak 18 languages??!

*shirks away feeling inadequate in the lingual sense*

gallygirl

Something wrong with work settings so can't edit but will take down later.

Yes, of course I speak 18 languages.

Or at least I know a website that does. I struggle enough with English :rotfl:

Not touting for business but happy to do friends rate . 30 sleeps till I'm off again :j

CathT

ooooh I missed all the excitment of you possible buying a second place. Glad to hear plans are simply delayed though and not dismissed.

I nosed at your place too Gallygirl, very very nice and what a wonderful retreat.

museumworker

gallygirl wrote: »

Not touting for business but happy to do friends rate . 30 sleeps till I'm off again :j

ooh, i may hold you to that - not this year as we have 2011 all wrapped up what with our trip to Ireland.

But 2012...

CathT, you missed very little except a fleeting moment of madness on my part - I'm sure there'll be many more to come :rotfl:

Received £8.40 from London transport refunds, surprised as had some yesterday too! Clearly they only do them in batches.

[Deleted User]

gg spain place looks gorgeous! we shall all be lining up at this rate :rotfl:

mw - glad talks with OH going well on future MF plans - its so good to have the same goal (in fact mrtyo often spends time reading the moneysaving boards more than me now! muhahaha!! my evil plan worked )

saving 30 K a year is just fantastic - how on earth do you manage it??!! and 3-5 years is a manageable amount of time.... will definitely be skulking off to see if I am doing enough saving and whether there is a 3-5 year goal I can set myself too!

museumworker

Was probably as clear as muck in last post! What I meant was last year we managed to save £19K, and this year we look set for a similar amount. Once we've paid off our mortgage we can add the mortgage payments we would have been paying to that amount, which is just under £12K a year. So once MF on our London home, we should be able to save £30K or more a year, and would then only need to wait a couple of years before we can purchase a hovel outright!

Between us we take home £4K a month, so we're saving just shy of £1600 pm on average from that. I am of course convinced we could be doing better :rotfl:! Roughly our monthly expenses come to £1k, mortgage another £1k, £200-300 on travel. I may need to keep a spending diary as I think there might be a couple of hundred unaccounted for...

better dash as will be late for work and want to sneak out early. Back to Wales to pick up DD and see some friends. BBQ tomorrow so please be kind, welsh weather!