Help to choose best mortgage!

Lisa1978

Hi, looking for some advice regarding which mortgage to choose. I am about to let my house out. I have sent off the consent to let fee and questionnaire to my mortgage lenders. I will be receiving £460/month from private rental.

I have 3 separate loans on my mortgage for £23k, £10k and £62k = £95k over 20years 2months at 4.24% Variable.

I have been given the following few options :

Put whole £95k IO £346.51
£10k repayment, rest IO £373.00
£23k repayment, rest IO £406.10
Combine the above £33k repayment, rest IO £432.00
All Repayment £517.00

I am used to paying £430 a month (the 23k changed from fixed 6.99% to variable 4.24% this month), so I’m thinking of going for the combined £33k repayment as can afford it. What is your view as I know people talk about ‘not making a profit’ when letting out a house. PS, I will also be paying the rates which are £45/month. This isn’t up for debate as it is reflected in the monthly cost to the tenant.

Thanks

saverbuyer

Seriously as you're Based in NI, with substantial negative equity, renting it out in breach of your mortgage, not filling in tax returns, and on what looks like interest only, if I was you i would sell up. You are in a mess. Best to start again.

somethingcorporate

Capital repayment cannot be offset against rental income so actually it makes no odds as to which of the options above you choose in terms of not making a "profit".

Lisa1978

saverbuyer wrote: »

Seriously as you're Based in NI, with substantial negative equity, renting it out in breach of your mortgage, not filling in tax returns, and on what looks like interest only, if I was you i would sell up. You are in a mess. Best to start again.

It's because of people like youself that i don't like posting on these forums. Who says im in 'substanial negative equity', who says 'im renting it out in breach of my mortage' and 'not filling in tax returns'. Your comments where not of any usefulness at all and i don't appreciate them. I was asking for advice on the best mortgage but i feel i'd be best removing myself from this forum! Thanks for the comment 'you are in a mess'... ignornant git!!!

saverbuyer

Lisa1978 wrote: »

It's because of people like youself that i don't like posting on these forums. Who says im in 'substanial negative equity', who says 'im renting it out in breach of my mortage' and 'not filling in tax returns'. Your comments where not of any usefulness at all and i don't appreciate them. I was asking for advice on the best mortgage but i feel i'd be best removing myself from this forum! Thanks for the comment 'you are in a mess'... ignornant git!!!

You did in your previous postings. You said TWO flats, one rented, no CTL. You said both in negative equity and you have large personal debts.

It’s an open form. Perhaps I can be your reality check. Instead of compound the loss just get rid of them now and start again.

I’m sorry it is difficult to take but you are in serious debt trouble here and you need to face the reality of the situation.

Best of luck.

Lisa1978

saverbuyer wrote: »

You did in your previous postings. You said TWO flats, one rented, no CTL. You said both in negative equity and you have large personal debts.

It’s an open form. Perhaps I can be your reality check. Instead of compound the loss just get rid of them now and start again.

I’m sorry it is difficult to take but you are in serious debt trouble here and you need to face the reality of the situation.

Best of luck.

well obvioulsy open forums aren't for me, didn't realise that people went and looked at previous postings for a nosey. Also, i am very pleased with myself as i have reduced my debt by £8k from February and will be debt free by next April... I have never in 15years missed a mortgage payment, nor any other payments and i pay 8 times the amount i am supposed to per month on credit cards. Yes, i was stupid in the past but i have grown up and am on the right path now. I was asking for advice to ensure i am doing the right thing. As you say one house will be let out, but i have sent the chq to get CTL and am awaiting their reply. The other property, the apartment is repayment! Thanks, but i will be deleting my a/c!

kingstreet

Someone once accused me of being a stalker when I asked them in a current post about something they'd mentioned in an earlier thread.

There I was thinking I was trying to help them.

<whyistherenorollingeyessmiley>

Just an aside, by the way. No implied criticism of Lisa or saverbuyer intended.

saverbuyer

Lisa1978 wrote: »

well obvioulsy open forums aren't for me, didn't realise that people went and looked at previous postings for a nosey. Also, i am very pleased with myself as i have reduced my debt by £8k from February and will be debt free by next April... I have never in 15years missed a mortgage payment, nor any other payments and i pay 8 times the amount i am supposed to per month on credit cards. Yes, i was stupid in the past but i have grown up and am on the right path now. I was asking for advice to ensure i am doing the right thing. As you say one house will be let out, but i have sent the chq to get CTL and am awaiting their reply. The other property, the apartment is repayment! Thanks, but i will be deleting my a/c!

You won't be debt free until you pay off the two mortgages. Mortgage = Debt. The biggest debts any of us are likely to have.

Good luck but I'm just saying your problems appear systemic.

RenovationMan

Lisa1978 wrote: »

well obvioulsy open forums aren't for me, didn't realise that people went and looked at previous postings for a nosey. Also, i am very pleased with myself as i have reduced my debt by £8k from February and will be debt free by next April... I have never in 15years missed a mortgage payment, nor any other payments and i pay 8 times the amount i am supposed to per month on credit cards. Yes, i was stupid in the past but i have grown up and am on the right path now. I was asking for advice to ensure i am doing the right thing. As you say one house will be let out, but i have sent the chq to get CTL and am awaiting their reply. The other property, the apartment is repayment! Thanks, but i will be deleting my a/c!

Congratulations on getting your debt under control, it's a great achievement and you should rightly be pleased with yourself. I understand your view that you asked a specific question and want a specific answer, but lots of people (myself included) are not happy with giving advice without knowing all of the information and without suggesting alternatives.

We are all (well, mostly) on MSE to help and be helped financially and unless all options are discussed and all information obtained, the help given might end up with you being in a worse situation financially.

Sorry if you feel otherwise, but I feel that saverbuyer is correct when s/he says that people should have a 'reality check' before they go down a financial avenue that could impact them for years to come.

Just my 2p, kindly meant.

Thrugelmir

Lisa1978 wrote: »

well obvioulsy open forums aren't for me, didn't realise that people went and looked at previous postings for a nosey.

People also have very good memories. I often recall a poster returning. In a different guise.

.