400K mortgage to shift

Dithering_Dad

Is there no way that you can offload either the overseas property or downsize from the UK property? Surely there is more to life than paying 60% of your income onto a property, however lovely it may be (and this is just to meet the current repayments, not to do a major overpayment exercise).
As interest rates increase, you could find yourself increasingly working for the bank.

If you're determined to stick with these properties, then you need to make sure your strengthen your financial position - build up your emergency savings, try to reduce your outgoings by getting cheaper suppliers for utilities, phones, insurance and try to get those mortgages on a fixed rate (if not already) to protect yourself if rates increase dramatically.

Saying that, I am also paying a large amount onto my mortgage - about 4k a month, but my actual mortgage amount is £850 pm, so most of the 4k goes towards capital repayment and I'll hopefully be mortgage free in three years. I'd certainly hate to have to put that much money into a house for the full term of the mortgage (anything upto 25 years!!)

p.s. I have made an assumption that as you have a 400k mortgage, that you probably have a very nice and large UK property that you can downsize from. However, it way be the case that you have a 200k mortgage on the overseas property and a 200k mortgage on the UK one, with not much equity in either. In this case I would bail from the overseas one, as you should currently be enjoying a much more comfortable life if your hubby brings in £60k net (which I guess means he earns +100k) than you do now. I'm all for investing for the future, but not if it means that you spend the next 25 years scratching a living!!

kassytbag

hi guys,
thanks for all the advice - i have been trying to talk OH into downsizing but he is of the" better things around the corner" school of thought which i must admit im not - would prefer to downsize get more money freed up to enjoy life and my kids with - i can see a huge argument brewing!!!

the property is in cyprus - being bought with two other sets of friends - will sell our share in 2009/2010 fingers crossed!

I agree that being more finanacially aware will help the kids in the long run but i do agree that i think they are now too aware - my eldest who is off to uni next year is worrying already about the student debt etc when really she should just be concentrating on exams - makes you feel like such a crap parent!

Kaz2904

Well rather than you and her worrying about student debt why don't you both use the next year to set her up with an action plan for when she goes to uni.
She would then have a good start and may be able to come out with less or no debt?

Teach her how to live on a budget with use of batch cooking etc. How to have fun on little or no money etc.
That will be a better gift than any amount of money you could throw at her.

[Deleted User]

Cyprus is still reasonably priced, so hopefully you shouldnt lose too much (your loss will mainly be interest to the banks).

Better things around the corner? The undieing optimism of the doomed. If I had a penny for every person earning over 100K that either went bankrupt or had less to live off then someone on incapacity benefit, id be a happy dude.

If your happy giving best part of a million pounds in interest payments in CCs, loans, products and mortgages, then carry on but dont complain about it! be happy in your choice.

setmefree2

Hi

I'm with Kaz. If your daughter learns to be clever with money at Uni this maybe the best thing she ever learns Hope she's not going too far away. There's nothing like popping back home for a hot meal and a clean environment. My recollection is that most students were slobs...:rolleyes:

kassytbag

lol shes thinking of edinburgh which is just about as far away as you can get!!! but you are right an action plan is a good thing - will put some thought into that
thanks!!!!!!!

robp

Student action plan:-

1. Baked beans
2. Bread
3. Toaster
4. Alchohol

There, that should help!

kassytbag

What a star you are robp - i like your style in my day it was just the alchohol!! no wonder i was so slim then!!!
by the way just looked at the bottom of your post at your interest saved so far £90,908 - you should be so proud that is phenomenal - how did you work that out?

setmefree2

Ah one of the joys of being a student is that you can't afford to eat and can wear skinny jeans..

..:beer::beer::beer:can always find money for the cheap student bar though...

those were the days when you didn't have to worry about mortgages and were just happy if you had some money for a few drinks on a Friday night_party_(that's me partying):rotfl:,

P.s. I like Baked beans and toast

Dithering_Dad

A brevil sandwich maker rather than a toaster, surely!