Advice on paying off buy to lets

angelsmomma

I have 3 mortgages on 3 properties. All are interest only.

One is a residential with 8 years left, the mortgage has consent to let and the remainder owing is £35000. I get £475 per cal month rent for this property with a long term tenant in it. 2 more years on the inital fix at 4.59% plus the 1% load = 5.59%

I also have a buy to let on the 2nd , owe £49000, interest only. Rental income £400 per cal month. 25 year mortgage. 1 year 3 month left on the inital fix T 5.89%.

The last property is a buy to let ( don't flame me please! I have moved into this property, the mortgage company know this, I got advice on the legality of this on here before I did it, especially from Holly Hobby, Thank you Holly) I have a lodger at this property who's rent (tax free under rent a room scheme pays the full mortgage plus £100 per cal month) also 25 year mortgage. 1 year 1 month left on the inital fix of 5.89%. Mortgage owing £65000.

My problem is that although they are all paid up to date I am of course aware that none of them will be paid off unless I do something to pay them. I don't know which to start on, although the 8 years left residential seems the starting point.

I am 55 and have around £1000 per month to pay on top of the interest only payments.

Any advice appreciated on what is the best way forward with overpayments to pay off all mortgages. Sorry for the long post.

thermos

Hopefully you will be forced to lose all three houses so that someone less reckless and more able to pay their way will be able to have a home.

Thrugelmir

angelsmomma wrote: »

Any advice appreciated on what is the best way forward with overpayments to pay off all mortgages. Sorry for the long post.

Choose the property you wish to make your home and clear the mortgage on that first.

The let properties will merely incur you a greatly increased tax bill.

angelsmomma

thermos wrote: »

Hopefully you will be forced to lose all three houses so that someone less reckless and more able to pay their way will be able to have a home.

What is your problem? how can I be reckless ? idiot

runninglea

what rate do they go to after the fixed period is up?

angelsmomma

Thrugelmir wrote: »

Choose the property you wish to make your home and clear the mortgage on that first.

The let properties will merely incur you a greatly increased tax bill.

Thanks, I was thinking of paying off the residential at £12000 per year over 3 years then remortgaging at 75% on a buy to let and paying off the buy to let I live in.

Then I would be left with 1 home (I live in) paid off and 2 buy to lets at 75% mortgages with an income of £875 per month and mortgage payments of approx £350 per month.

Do you think that sounds ok. Dismissing the thermos post

angelsmomma

runninglea wrote: »

what rate do they go to after the fixed period is up?

The SVR which is not much more from memory around 4,8%

runninglea

angelsmomma wrote: »

Thanks, I was thinking of paying off the residential at £12000 per year over 3 years then remortgaging at 75% on a buy to let and paying off the buy to let I live in.

Then I would be left with 1 home (I live in) paid off and 2 buy to lets at 75% mortgages with an income of £875 per month and mortgage payments of approx £350 per month.

Do you think that sounds ok. Dismissing the thermos post

I would to, he sounds all hot and bothered and just needed to let of a bit of steam

angelsmomma

Thanks, I am not very experienced about mortgages, I just want to make sure my own property is paid for and that the other 2 properties support themselves so that my special needs son has a home and some income if anything happens to me.

angelsmomma

runninglea wrote: »

I would to, he sounds all hot and bothered and just needed to let of a bit of steam

Oh bless him/her I suppose I should feel sorry for them, they obviously feel they are owed something from us grasping landlords.

Unfortunately he/she is way off the mark as one of my tenants got the house with no deposit and £50 a month less than the going rate in this area. They struggled to find a home with 3 pets so as an animal lover I gave them the house (which had 7 other applicants ).

The other tenant were not able to access a rental due to a repossession of her previous house and CCjs. The council would have made them get rid of their pets and put them in b&b with their 3 children.

I gave them both really good properties that I would live in myself, they have both repaid me by never missing the rent and taking care of my houses.

I don't want praise for this, they are paying my mortgages after all, however how dare anyone critcise me for it

Wh05apk

How much equity do you have in the other properties?

Would you have enough to sell one property, to clear the other mortgages (subject to tax planning!)