Fast-approaching deadline for Interest Only BTL mortgages.

Saving_Glut

Overpaid £25 into mortgage with funds in payp@l account to keep my toe in the water, whilst waiting for confirmation of my final tax calculations.

I have surprised myself by sticking with this newfound habit, MSEing, since August this year!

Both employer and recruitment agent clubbed together to increase my salary from 1st January, which helped justify booking a bucket list challenge in October next year.

Euroland tax accountant plans to return my tax return by the end of the year. It will be really good to know the result so I can plan my MSE goals for 2019.

Have yet to spend £690 on my AMX to secure Bonus Avios points. I plan to book some flights for OH and mum planned for later in the year, to reach the target. Getting the best deal will be tricky:

1. I must spend £690 on AMX card before 9th January
2. AMX are offering £50 cashback if I book a holiday in the next three days.
3. Flight sales start after Christmas

In other news:

I have signed up for the Sealed Pot Challenge to save change etc up until October 19 for Xmas spends.
I have also signed up for the make £2019 in 2019 MSE challenge for extra money earned which woulld help greatly with the cost and the financial guilt of the bucket list challenge I signed up for earlier this month.

Ok, off to knock the princely sum of £25 off my signature!

Saving_Glut

It’s hardly ground-breaking news, but two more steps taken to reduce the BTL mortgage.

Euroland accountant has completed my tax returns (he’s been my Mum’s accountant for about 40 years, this can only bring me tax-luck, I’m sure!). I will pass outcome to UK accountant and hope for a happy recalculation of my UK tax bill before due date on 31st Jan.

Earned £10 cashback for using new petrol app and cc combined. This has been redirected to BTL mortgage. I did TT with an extra £1 so that my op for past 5 months came to a tidy £8,000! Now, if only I could find a TT of £9,963, that would leave me with a very neat balance at the end of the year! :rotfl:

greent

Fab result for 2018! :T

Saving_Glut

Thank you greent. Your comments have been encouraging. It’s reassured me that I am not typing into an empty void!

greent

Saving_Glut wrote: »

Thank you greent. Your comments have been encouraging. It’s reassured me that I am not typing into an empty void!

I think we all feel like that at times!

I am truly impressed at your focus, though - such a great start! :T

Saving_Glut

No overpayments today, but some updates below:

I plan to have return flight to Copenhagen in October. BA confirmed this would cost 8,000 Avi0s points (flight was about £70 online). I’m really pleased with this as I will have 16,000 points in January.

While on phone, lady at AMX suggested I add my OH to both my cards. I earned £5 cashback on one card amd 3,000 points on the other. OH will cut cards on receipt as no obligation to spend.

I still have target to spend about £550 on AMX before 9th January to earn additional 25,000 points. I am trying to book holiday withMum but it’s convoluted and I have given up more than once! Worst case scenario is that I will pay my HMRC bill via Billhop. This would incur some expense, but the rewards are worth it.

Was going to apply for Halif@x cc for Euro spends, but learnt from this site that Barcl@ys has a sim8ar offer but with cashback. Will be good to receive cashback for remaining balance in replacement windows and doors in January and not be charged exchange fees.

I have submitted my survey points to a competition as frequent requests were disruptive with very little return. Will aim to spend the time gained managing my finances to avoid being charged bank fees in 2019. And that is a stretch goal for me!

Finally, I have submitted my Euroland tax return to UK accountant. I am curious if there will be a reduction in taxes due....

AnotherJoe

Maybe i missed it but what is the rental income on BTL1&2 ?

Saving_Glut

Hi Joe

Just £11k p.a.

Can I ask why you’ve enquired?

Rgds

SG.

AnotherJoe

Saving_Glut wrote: »

Hi Joe

Just £11k p.a.

Can I ask why you’ve enquired?

Rgds

SG.

Because perhaps you are running them at a loss and should sell as you'd clear the NE quicker.

Saving_Glut

Hi Joe

Thanks for your response

You’re right, selling them must be considered. Hope to make time in spring to consider and analyse the various options. I will probably set out the options here while I make my decision.

Some of the considerations include the:

1. opportunity to invest in some B2L property improvements, thus reducing tax on rental income and increasing the value.
2. possibility that BTL1 and BTL2 property market is anticipated to increase in value by 12% next year. It’s been bumping along the bottom of valuations for quite a long time.
3. Getting onto market mortgage rate for BTL1 & BTL2 rather than staying on punitive NRM rates would result in a significant difference in income. If property values increase as anticipated, I might just be able to pay down the NE balance in 2019 to enable me to move to more competitive rate,
4. mortgage balances aren’t astronomical. Must consider if the short-term cost is worth it in the long term for BTL1 & BTL2.
5. it is difficult to sell other property investments in London at present because of Brexit uncertainly.
6. Rental increases are expected in the near term.
7. There could be a strong appetite for London buyers after Brexit.
8. I wouldn’t be charged CGT if I sold with NE.
9. Euroland, where I have another property is considering disallowing non-residents from investing in property there.
10. And of course, there is the possibility of emigrating, esp with anticipated IR35 changes for contractors coming down the line in 2020!
11. Get a better paid job to pay down NE.
12. Accept that B2L is no longer viable and rethink retirement plans,
13. Set up limited company for BTL1&2, more attractive as they are in negative equity.
14. Increase rents. There is scope for an increase in a London B2L, but current tenants are good and plan to stay put for some time. Without this change in tax regulations, I wouldn’t even have considered raising the rent.
14. Sell up everything and go on a long cruise! :beer:
15. Get an offshore account, ok, now I’m just being silly!
16. Get professional advice.

Did someone say being a landlady was easy? Lol!

Thanks for prompting me to at least begin the thought process for my portfolio. If you can think of any other points I should consider, please let me know!
SG.