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should we take a mortgage on?
bimbim234
Posts: 2 Newbie
Hi there,
we are in a very fortunate position to own two properties mortgage-free... One we live in (have been doing a lot of work to it in the past few years) and one we rent out to a relative. The total value (pre-works on our home) is about £970k.
We have run out of funds for the rest of our renovation (nothing super urgent but it would be good to 'complete' it and just be done, in particular with my line of work which has to do with property - it could serve as a great portfolio piece), and the rental could do with some work to the bathroom, so we thought it might be a good idea to get a relatively 'small' mortgage to cover these so we could do them right now... between £40k and £70k.
The biggest issue is that we are both self-employed, and as we were doing the works in the past few years, we only have account for the past financial year 2015/2016.
My partner earned about £26k and me about £7k (I was still project managing our renovation). I have about £10k worth of CC debt but all on managed 0% long-term deals...
The rental brings in £14k a year but could bring a lot more with the works done, and also, since the relative (and their friends & family rent) is soon to depart London.
We don't have children but might think about it in the next few years.
What would you do in our situation, considering the soon to be referendum etc? My partner has been working a lot for the past couple of months, whilst I am still getting back onto paid work. Another option could be to get more 0% credit card although my partner is a bit scared by that... And yet another... just wait and spend as we earn! If you would go the mortgage route, what kind of mortgage would you think is best?
Thank you so much in advance for any insight you might have!
we are in a very fortunate position to own two properties mortgage-free... One we live in (have been doing a lot of work to it in the past few years) and one we rent out to a relative. The total value (pre-works on our home) is about £970k.
We have run out of funds for the rest of our renovation (nothing super urgent but it would be good to 'complete' it and just be done, in particular with my line of work which has to do with property - it could serve as a great portfolio piece), and the rental could do with some work to the bathroom, so we thought it might be a good idea to get a relatively 'small' mortgage to cover these so we could do them right now... between £40k and £70k.
The biggest issue is that we are both self-employed, and as we were doing the works in the past few years, we only have account for the past financial year 2015/2016.
My partner earned about £26k and me about £7k (I was still project managing our renovation). I have about £10k worth of CC debt but all on managed 0% long-term deals...
The rental brings in £14k a year but could bring a lot more with the works done, and also, since the relative (and their friends & family rent) is soon to depart London.
We don't have children but might think about it in the next few years.
What would you do in our situation, considering the soon to be referendum etc? My partner has been working a lot for the past couple of months, whilst I am still getting back onto paid work. Another option could be to get more 0% credit card although my partner is a bit scared by that... And yet another... just wait and spend as we earn! If you would go the mortgage route, what kind of mortgage would you think is best?
Thank you so much in advance for any insight you might have!
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Comments
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What would you do in our situation, considering the soon to be referendum etc?
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What on earth has that got to do with the price of fish?0 -
ah ah. I am not sure, but I guess it does bring an atmosphere of uncertainty?
Maybe if doing a mortgage is indeed the best idea, we should get a move on sharpish to make sure we would benefit from a good fixed rate?
we are quite clueless in this as you obviously can tell
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