We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
any advice you can share?
Options
Comments
-
Pay off the loan.
Put another £5k in an ISA.
Use the rest to overpay the mortgage.
Then rather overpay the mortgage. First pay the maximum you can into your Company pension scheme you can to obtain matched employers contributions.0 -
if you decide that you do want to buy a btl property then you would be better keeping your low rate mortgage on your home rather than paying this mortgage off and getting a higher rate btl, and as you point out if you want to let to your dad you wouldn't be able to with a btl mortgage, but this way you would effectively be offsetting buying with your current mortgage. You would have to see if there is a way of then offsetting your current mortgage against rental income, I think you are able to do this if you take a new mortgage out on your home to purchase a btl property so you would have to take advice.
My dad gave me a partial early inheritance at your age, it was a flat worth £50000, it was in the early 90s when property prices had slumped and it wouldn't sell easily, it is now worth about 4 x that, but more importantly to me it generates a good monthly income. Having had significant health problems over the last few years and now struggling to work the income is a bit of a life saver for me and I am pleased that I hung on to the flat.0 -
i would forget buying a BTL. it's a lot of hassle for little return.
i would think buying a second place to live in will mean two lots of household bills. or perhaps you could rent your existing place out and move nearer work? £250 a month on commuting is a fair amount.
what do you pay income tax at? could be worthwhile putting your money into a pension?
how safe is your job? if you had a steady state job you might not need to add too much to your emergency fund.0 -
hi again all. thank you so much for your replies.
in answer to some of your questions on here so far;
i currently pay 11% into my company pension scheme, with my company adding 4% - im due my first annual pension projection next month which im hoping is favourable as its a big chunk of money that i wont see until im 55. the thought of retiring poor fills me with dread though.....and it seems to fall on deaf ears with the vast majority of my collegues!
job wise; im covered by my company penion scheme for £100000+ if death or critical illness occours. job wise i could walk into another one within a week if the worst happened (im a design engineer), plus would work in whatever role i could until things settled down (10 years as a cleaner from 16 - 26 tought me some valuable lessons).
I have spoken with my dad about a BTL mortgage, whereby i own the mortgage, and he and his GF rent the house from me very long term at rent that covers the mortgage. as several have suggested, this is frought with issues and potential legal complications. How would the morgage company find out that i was letting to my dad and his gf? if i let to his gf and she paid from her account i guess the only way they could find out would be through the electoral roll? complicated and risky.....but solid tennants are hard to come by they say.....
I need to investigate the principles of deprivation of assets. at present my dad is looking to partially retire over the coming years (he is 63) but hasnt decided wether to sell or keep his buisness when he retires. His personal pension fund is worth approx £160000 so he needs to be fully aware of his potential lifestyle beofre he gives me or my brother a penny imo. the very last thing i want is for him to be living a poor lifestyle at my benefit.
as far as my dads health goes he is as fit as a fiddle. his gf is 12 years his junior too. he has suffieinct health cover to wake the dead so he assures me this isnt a pressing issue.....but who knows the future. i certianly wouldnt want to deprive him of anything he is entitled to after working so hard his entrie life!
im leaning a little towards a multi pronged attack that will benefit my future in the short, medium and long term. so please let me know your opinion on this scenario;
1st; pay off my car loan - short term
2nd fill this years cash ISA allowance up (gives me £10k in cash buffer) - medium term
3rd; use £1k to finish all those final little diy jobs around my home off
4th; split the remianed evenly between a S&S isa and paying down my mortgage. - long term
also, i dont think i mentioned this before - my mortgage rate is 3%, but the BOE base rate would have to rise to 2.75% before my payments would increase (0.5% above BOE base rate, with a 3% floor). this overpayment may bring me down to 75% LTV so i could investigate deals, but costs would have to be calculated to determine if its a winner or not.
thank you for all your replies so far!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards