property market??

LilacPixie

OP - you SVR rate is under 3%. When you revert to that continue to pay £620 per month and more if you can. When your GF moves in use the reduction in your share of utilities council tax to pay off even more and get her to save soe money independently. There will come a time when you have enough equity in your property and your GF enough savings to sell up and buy somewhere together but until then you need to reduce the amount you owe by as much as possible. Increasing your mortgage term may reduce payments but it won't do anything to clear the capital amount owed and thats what you need to be doing.

iam2103

ok having read all the feed bbck which is greatly appreciated and reading other posts also, I have come to the conclusion that,

1. I will stick with my current mortgage provider and move onto their rate.
2. I will ask them to change my term from 35 to 25.
3. Will try pay £700 a month between me and my GF and save about another £400 per month between us in a savings acoount.
4. By doing this for a year hopefully I can remortgage then.

Does this seem like a good plan? Thanks.

phlash

I would say no it's not.

Stick with 35 years. It means you have the option to pay less if you find yourself in difficult circumstances.

By all means pay the amount that you would pay on a 25 year mortgage or even 15 year (providing the overpayment % is not exceeded on the mortgage - check terms), thus overpaying, but leave yourself with the option of just paying the monthly rate for the 35 year mortgage - thus making cash flow easier in hard times.

Before venturing into any kind of BTL, you would really need to get clued up. You can't just walk into the BTL game and make money in this market. Considering your understanding of your mortgage throughout this thread, and no disrespect meant, it is clear that you had not grasped the mechanics of a simple mortgage, let alone the mechanics of an entire BTL business with its regulation and financial planning required.

I would invest in some decent books first, and invest time into studying them.

PS. By doing that for a year you will not be able to remortgage. Your current borrowings are 100% of the value of the house, after one years payment at the rate your talking about above that ratio may have fallen, generously, to 96%. A 4% deposit will not get you a new mortgage, and I doubt your property will have increased in value and allowed you to release equity.

PPS. 2.4% above BoE base rate is a good rate, especially considering you are paying no fees in order to get it. A new mortgage will a) tie you in and b) incur fees of say £1k - £1.5k all in and c) put you under another ERC timetable.