Mortgage free by 2021?!

Ali-OK

I think some mortgage companies allow 'consent to let' for a period of time even when not in the T&Cs - worth giving them a call to ask?

Might add another option to number crunch

hiddenshadow

Ali-OK wrote: »

I think some mortgage companies allow 'consent to let' for a period of time even when not in the T&Cs - worth giving them a call to ask?

Might add another option to number crunch

Thanks, will phone tomorrow to see. Always like more numbers to analyse.

debtfreeoneday

Sorry to hear plans are all a change in here.. sure you will make the right decision.

hiddenshadow

Good news from FD they're open to the option of letting the house out for 6-12 months, and ("at a push") up to 24 months. :j (Could have been even better, their system shows the ERC as being applicable to the end of 2017, but support confirmed that it should really apply through 2020.)

That could be a nice middle-of-the-road solution for us...we move elsewhere and rent for 2-3 years (meanwhile acquiring residency time towards citizenship), offset the costs of our house via rental income, and avoid paying the £3,300 early repayment charge. Then in 2020 our fix ends and we sell the house for cash and buy something outright.

That would make the annual plans roughly...

2017:
Overpay mortgage for 6 months, then pay the regular payment for 6 months with the house vacant
Mortgage balance: ~86k

2018-2019:
Rental income covers the regular payment, plus £500/mo OP from us
Mortgage balance: ~45k

2020:
Regular payment, no additional OP as no rental income
Mortgage balance: ~30k

Assuming a house value of approx. 300k by the end of 2020, that means 270k equity when we sell, which should be more than enough to buy someplace with cash.

hiddenshadow

debtfreeoneday wrote: »

Sorry to hear plans are all a change in here.. sure you will make the right decision.

Thanks DFOD. On the one hand I feel a bit like we're panicking a bit and rushing around to make alternate plans....on the other hand, our core plans are basically unchanged (cash out of our house and buy someplace rural and semi-retire), it's just the logistics that get a lot more complicated as we're no longer seriously considering the UK for our rural location. Given that, I feel like we should move as quickly as possible so that we have well-established residency/road to citizenship before all the Brexit stuff actually kicks in and makes things more difficult. (Realistically speaking I don't see us moving for another year at least.)

We'll see...for now, there's no harm in accelerating our mortgage OPs. Even if it turns out that we do stay here through 2020 it just means we'll be able to ease off on the payments later. And if we do move (which seems highly likely), having the flexibility with the debt itself and its repayments will leave more options open to us. Win-win, I think?

Ali-OK

Good news indeed from FD and the extra options :T

hiddenshadow

In the spirit of running as many numbers as possible , I've put together a hypothetical SOA for renting/living costs in Ireland and costs to rent out our house in England.

Anyone spot missing/inaccurate items? I've mostly guessed on the Irish numbers based on what it costs here.

Ireland Expenses: 3,430
Rent.................................... 1000 (Should be closer to 800 but would rather overestimate)
Council tax............................. 0
Groceries etc. ......................... 225
Household............................... 50
Pets.................................... 50
Mobile phone............................ 30 (Looks like a decent plan is 15 and DH would have to pay for his own plan)
Internet Services....................... 40
Electricity............................. 50
Gas..................................... 50
Water rates............................. 20
Petrol/diesel........................... 150
Medical (prescriptions, dentist etc).... 100
Health insurance........................ 200 (won't need this until Brexit)
Entertainment........................... 375
Pet insurance/vet bills................. 400
Charity................................. 50
Road tax................................ 35
Car Insurance........................... 100
Contents insurance...................... 50
Emergency fund.......................... 100
Clothing................................ 20
Car maintenance ........................ 135
Electronics............................. 50
Holiday................................. 25
Presents (birthday, christmas etc)...... 50
Car Replacement......................... 75

Engand Expenses: 1,520
Mortgage................................ 1000
Management charge ...................... 120
Home Maintenance........................ 250
Life assurance ......................... 15
Buildings insurance..................... 100
Home Care Plan.......................... 20
Water................................... 15

Total monthly expenses.................. 4950

Assuming those numbers are roughly correct, we shouldn't be too bad. Rental income (post-tax) should be ~£960/mo and right now our expenses/savings are roughly £3,500/mo, not counting the £1,400 OP. £960 + £3,500 + £1,400 = £5,860 so we should be about £900 ahead each month based on this budget.

gallygirl

hiddenshadow wrote: »

Good news from FD they're open to the option of letting the house out for 6-12 months, and ("at a push") up to 24 months. :j (Could have been even better, their system shows the ERC as being applicable to the end of 2017, but support confirmed that it should really apply through 2020.)

That could be a nice middle-of-the-road solution for us...we move elsewhere and rent for 2-3 years (meanwhile acquiring residency time towards citizenship), offset the costs of our house via rental income, and avoid paying the £3,300 early repayment charge. Then in 2020 our fix ends and we sell the house for cash and buy something outright.

That would make the annual plans roughly...

2017:
Overpay mortgage for 6 months, then pay the regular payment for 6 months with the house vacant
Mortgage balance: ~86k

2018-2019:
Rental income covers the regular payment, plus £500/mo OP from us
Mortgage balance: ~45k

2020:
Regular payment, no additional OP as no rental income
Mortgage balance: ~30k

Assuming a house value of approx. 300k by the end of 2020, that means 270k equity when we sell, which should be more than enough to buy someplace with cash.

And if it doesn't come to fruition you've had fun with the figures :T:D.

hiddenshadow wrote: »

In the spirit of running as many numbers as possible , I've put together a hypothetical SOA for renting/living costs in Ireland and costs to rent out our house in England.

Anyone spot missing/inaccurate items? I've mostly guessed on the Irish numbers based on what it costs here.

Check out here:
http://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=United+Kingdom&country2=Ireland
Depending on where you are in the UK vs where you're planning on for Ireland it could be a bit cheaper - or a LOT more expensive.

hiddenshadow

gallygirl wrote: »

And if it doesn't come to fruition you've had fun with the figures :T:D.

Indeed - nothing like some analysis and spreadsheet fiddling to end the week.

Check out here:
http://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=United+Kingdom&country2=Ireland
Depending on where you are in the UK vs where you're planning on for Ireland it could be a bit cheaper - or a LOT more expensive.

Thanks for that! It helps a bit (think food might be more expensive), though we're not aiming for any city so a bit hard to judge prices for rural living. I looked up some things online (broadband prices, road tax, etc), but some will just need to be figured out as we go, I think. At least by avoiding Dublin we should escape most of the crazy expensive stuff.

shangaijimmy

West coast of Ireland would be fabulous location I think! I can't ever imagine living anywhere else (think it's a northern thing) and I think it's so brave of people who move about!

Think I would enjoy the planning bit though!!