Shall I Become Mortgage Free Dilemma 26 May 2014 at 11:37AM in Mortgage-free wannabe 6 replies 814 views

sun8eam

Hi,

I wondered if anyone out there might be able to help me make a decision on my possible MF journey.

I currently own two properties; a 2-bed maisonette and also a 3-bed terraced house. I have mortgages on both and have the intention of either selling or renting out the 2-bed maisonette for a few years.

My outstanding mortgage on the 2-bed is only £30K (approx value £250K), whilst £140K approx is owed on the 3-Bed property.

So if I sell the 2-bed, it would pay off both mortgages, making me mortgage free.

My dilemma is that I really don't know if I want to continue being a landlord as I have been for the past 10 years. I am in my late forties, working and have a private pension.

Friends & family members advise that it might be better for me to rent out the property as an ongoing form of income and to then subsequently make over payments to my larger mortgage in order to pay it off quickly over say the next 8-10 years.

However, the appeal of not having any mortgages (debt) anymore really does appeal to me as I have quite a stressful job.

If anyone can let me know of their experiences and advice would welcome.

sun8eam

hildosaver

Depends on what you really want I guess, nobody can answer that for you. If you can hang on for another few years and overpay your main mortgage off as soon as possible then you could potentially have an income from the 2-bed for life and a small/no mortgage on main house. It would be very tempting to sell up and go mortgage free now though - really depends on how you feel about sticking it out for more years with the overpayments.

sun8eam

Thanks Hildosaver.

Hanging on over the next few years would mean that I would have to carry on working in a job which I do not really enjoy as it is quite stressful. If I were to sell now whilst the market is on the upward trend then it would allow me to have choices at work, less hours etc and to enjoy life a bit more.

sun8eam.

norfolkdream

Only you can make that decision obviously as you know your situation more than anyone.

Do you get a good income from the rental? Is it enough to live on with your pension? Is it worth the hassle of keeping it on? Are the tenants troublefree? Are you planning on staying in the house you are in now?

Would it make your life much easier getting rid of the rental and being mortgage free or will you be kicking yourself that you could have kept it going for the income once mortgage paid off on that one. (I kick myself that I got rid of a house now I see how much it is now worth )

Is your private pension enough to comfortably live on?

if you really dont want to have the hassle of the rental and it wll make your life/work balance better that can only be a good thing. But is it really that much of a hassle? Have you had problems with it. A lot of people, me included, would love to have an extra house investment. But I do know that tenants and house repairs can be a big problem. (I used to work for a plumbing company that did work for rental agencies)

Sorry not much help but as I said, only you can make that decision. Me personally I would keep the house going.

jackieblack

sun8eam wrote: »

Hanging on over the next few years would mean that I would have to carry on working in a job which I do not really enjoy as it is quite stressful. If I were to sell now whilst the market is on the upward trend then it would allow me to have choices at work, less hours etc and to enjoy life a bit more.

sun8eam.

I think you've just answered your own question

norfolkdream

I see that you have asked this question over and over on here, haha. You have obviously been thinking about this for a while and people arent giving you the answer you want to hear.

sun8eam

Thanks Norfolkdream, I think you are right there! Think I'd better call the EA in the morning!