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My Buy to Let and Private Mortgage Porfollio
Outsider_83
Posts: 166 Forumite
Hi All,
I feel my property portfolio is well overdue a review and I have never had any outside analysis done and I would be interested in your feedback. Overpayment fee on all mortgages is 5% and I am not sure my current setup is sustainable. I earn £31k in my main job and I am 35 years old.
Buy to Let 1
Bought - £123,000.
Outstanding Mortgage - £38,900.
Rate – 4.15%
End of Current Term – 31.01.2020.
End of Overall Term – 30.04.2025.
Rental Income - £455 per month.
Expenses - £700 annually (Tax/Insurance)
Buy to Let 2
Bought - £53600.
Outstanding Mortgage - £29,100.
Rate – 4.15%
End of Current Term – 31.01.2020.
End of Overall Term – 30.05.2025.
Rental Income - £320 per month.
Expenses - £400 annually (Tax/Insurance)
Buy to Let 3
Bought - £62100.
Outstanding Mortgage - £39300.
Rate – 3.29%
End of Current Term – 30.06.2020.
End of Overall Term – 30.03.2031.
Rental Income - £423 per month.
Expenses - £950 annually (Tax/Insurance)
Residential Mortgage 1
Bought - £84000.
Outstanding Mortgage - £65700.
Rate – 4.69%
End of Current Term – 28.02.2019.
End of Overall Term – 30.09.2039.
Room Rented - £250 per month
Expenses - £550 annually (Tax/Insurance)
I feel my property portfolio is well overdue a review and I have never had any outside analysis done and I would be interested in your feedback. Overpayment fee on all mortgages is 5% and I am not sure my current setup is sustainable. I earn £31k in my main job and I am 35 years old.
Buy to Let 1
Bought - £123,000.
Outstanding Mortgage - £38,900.
Rate – 4.15%
End of Current Term – 31.01.2020.
End of Overall Term – 30.04.2025.
Rental Income - £455 per month.
Expenses - £700 annually (Tax/Insurance)
Buy to Let 2
Bought - £53600.
Outstanding Mortgage - £29,100.
Rate – 4.15%
End of Current Term – 31.01.2020.
End of Overall Term – 30.05.2025.
Rental Income - £320 per month.
Expenses - £400 annually (Tax/Insurance)
Buy to Let 3
Bought - £62100.
Outstanding Mortgage - £39300.
Rate – 3.29%
End of Current Term – 30.06.2020.
End of Overall Term – 30.03.2031.
Rental Income - £423 per month.
Expenses - £950 annually (Tax/Insurance)
Residential Mortgage 1
Bought - £84000.
Outstanding Mortgage - £65700.
Rate – 4.69%
End of Current Term – 28.02.2019.
End of Overall Term – 30.09.2039.
Room Rented - £250 per month
Expenses - £550 annually (Tax/Insurance)
0
Comments
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When you say "overpayment fee", do you mean early repayment charge?
If so, then 5% penalty for remortgaging plus the costs (e.g. lender's arrangement fee, money transfer fee, broker fee) are probably adding up to more than what you could save by switching. This is due to the low mortgage amounts. I don't think that it's worth remortgaging any of the properties.I am a Mortgage BrokerYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I'm not a mortgage expert, but you seem to be paying a high interest rate on your current mortgage. It's even higher than your BTLs.
I'd be looking at what the penalty on remortgaging that one would be. First port of call is your current lender, to save on survey fees etc.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
You need to look closely at your figures as Section 24 may well push you in to the higher income tax band and increase your tax bill (it looks very close).0
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Have you done the cash flow analysis for end of terms?
current rates are all high and with the big ERC the rates needed to recover that could be lower than you can get.
the best option might be just max out penalty free overpayments till the current deals are ERC free then look at some refinancing.0
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