I WILL be MF someday soon (but I also want more BTL's!!!)

craftingmad

Hi all,

Well three years ago My OH and I decided that we wanted to be MF before I was 40 (I am 39 in just over a week's time). We scrimped and saved and managed to reduce the mortgage on our own house by £80k.

However the interest rate on our own mortgage went right down with the change of interest rates so we sat down and decided that the money we were using to overpay would be better used in other ways so we decided to start building up a portfolio of BTL properties ready for our later years in life.

So to cut a long story short we now have:-

1/ £40k mortgage on our own property at an interest rate of
1.5% - property worth approx. £190k

2/ £81k mortgage on 1st BTL property at 4.9% - property worth approx. £170k

3/ £80k interest only mortgage on 2nd BTL property at 4.9% - property worth approx. £120k

So although we have reduced our own mortgage, we have considerable upped our outgoings with the BTL mortgages. Both BTL properties are currently tenanted (one for the foreseeable future - the other who knows?) but even if we were receiving no rent on either property we could still comfortably afford all the mortgages we have.

The plan is to have a further 1 or 2 BTL properties (to give us a reasonable pension scheme when we grow old(er!) and we already have saved £30k deposit in order to buy one.

However I also want to try and start knocking down the BTL mortgages as quickly as I can so that we will have even more for our retirement when it comes

So here marks the start of my MF journey - I hope you want to follow along - it may sometimes be a bumpy ride - so fasten your seatbeats and hold on tight!!!!!!

Jonbvn

Given that the interest on the BTL mortgages is tax deductible, is it wise to OP them now?

getmore4less

You might be worth looking at a larger offset residential mortgage.

can still offset the interest(if done properly).

gives masive cashflow options as you save up for each one of the BTL.

Advantage is you can start to reduce the higher rate loans while still getting tax relief on interest.

Another option might be to see if you can drawdown the overpayments, again should be able to structure so you get the tax relief.