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op advice please

I need some advice on how to op the most efficient way.

I have 500 a month available to op.

I have a mortgage on my house balance 6k through oping. Monthly payments onn this 45. Stopped oping on this now and mortgage due to end 2032. Variable rate mortgage with IF (all in one account and due to isa 11500 being in there no interest being charged on mortgage)

I have a btl property. Btl mortgage with mortgage works 35k due to end in 22 years time. Monthly payment 181 but interest only! Rate 5%

Two more interest only mortgages in my IF account 1) 54k 124 a month 2) 9500 24 a month. Also due to end 2032 when they need paying off.

Obviously want to sort interest only mortgages out asap! And get shot.

As I said I have 500 a month available to op which at moment im sticking in IF isa until I know best thing to do.

Other issue is I have to raise 150k mortgage in 5 years time to pay my ex off.

Any advice on how I go about using the 500 a month most efficiently? Mortgage works say they only recalculate monthly payments everytime 500 paid off and this mortgage has highest interest rate!

Replies

  • originalmiscellanyoriginalmiscellany Forumite
    1.7K Posts
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    Forumite
    Let's try to work this out - stop me when I am wrong...
    I want to overpay £500 a month.

    I have
    1)a)
    House mortgage of 6k through overpaying. Cost £45 a month.
    I stopped overpaying as mortgage is ofset with savings so effectively I don't have a mortgage.)
    1)b)
    54k £124 a month
    1)c)
    9500 £24 a month

    2)a)
    BTL mortgage 35k due to end in 22 years time. Monthly payment 181 but interest only! Rate 5%

    3)a)
    In 5 years I need to raise 150k mortgage to pay my ex off.


    Is that right?
    If so
    How much does your BTL make per month?
    5 years to raise 150k is 30k a year, which in turn is 2.5k a month. That's a LOT of money to raise!
    As people have said I would pay the highest interest first, on whatever it is, although I think the real challenge is this 150k in 5 years, everything else pales into insignificance with that.
    Feb 2012 - onwards MF achieved
    September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
    April 2018 down to 28.00 months vs 30.04 months at normal payment.
    Predicted mortgage clearing 03/2047 - now looking at 02/2045

    Aims: 1) To pay off mortgage within 20 years - 2037
  • Yes you have got it spot on! Im going to raise the 150k by remorgaging my main house though. Thats why I dont want to pay 6k off now from isa as want to keep mortgage 'open' so I can borrow more.

    Most expensive mortgage is btl one so guess ill hit that one with the 500 each month and leave the others
  • originalmiscellanyoriginalmiscellany Forumite
    1.7K Posts
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    Forumite
    I imagine if you're in a position where you can pay off your BTL and put any profit into it each month, you should be able to make some headway into it.

    I understand the 6k now! All the best :)
    Feb 2012 - onwards MF achieved
    September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
    April 2018 down to 28.00 months vs 30.04 months at normal payment.
    Predicted mortgage clearing 03/2047 - now looking at 02/2045

    Aims: 1) To pay off mortgage within 20 years - 2037
  • As it is far and away the most expensive loan I thought I would put the whole 500 each month to it which will reduce payments each month but just wanted to check I wasnt missing anything! The two other mortgages are where I remortgaged to get deposit for btl (I got the max they would give me at the time as it as cheapest way of getting money as low interest rate and no huge fees).

    Unfortunately btl property not making me any money at the moment as someone in there just covering my additional mortgage payments. The btl property is on the market so once sold all the additional mortgages will be paid off. There will be bit of profit and ill be able to get the cash out that I put into it (approx 15k) ill then put the 500 a month I was using to overpay into isa and save like mad in the hope that when the time comes to give my ex his money I can give him large lump sum and only have to remortgage for smaller amount. Then op this like mad to get shot of it asap as I so want to be mortgage free and since oping my main mortgage from early on I can really appreciate the benefits!

    Yes ive had to make sacrifices along the way but its become a way of life now!
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