Are we mad!! Mortgage free or buy to let??

Wizimum

UPDATE!! Following an overwhelming response that our plan was INSANE. I contacted the estate agent and withdrew from the purchase. Felt so bad on the vendor but after reading everyone's comments felt we didn't have a choice.

Thank you for everyone who took the time and effort to offer pearls of finiancial wisdom. You have changed the course of our lives. (Sounds corny but it's true).

We are now looking forward to being mortgage and debt free in less than a month. Very liberating!

getmore4less

What was the price of the flat and rent achievable?

Gross yield is a good start on viability.

If you were basing it on a repayment mortgage then the numbers included an element of savings(dedt reduction).

Mutton_Geoff

Wizimum wrote: »

UPDATE!! Following an overwhelming response that our plan was INSANE. I contacted the estate agent and withdrew from the purchase. Felt so bad on the vendor but after reading everyone's comments felt we didn't have a choice.

Thank you for everyone who took the time and effort to offer pearls of finiancial wisdom. You have changed the course of our lives. (Sounds corny but it's true).

We are now looking forward to being mortgage and debt free in less than a month. Very liberating!

Well done. I have been following this thread and pleased to read you asked for advice, considered it then acted on it. Many people struggle with changing their minds and you will not regret your decision for years into the future.

I wouldn’t sweat feeling you let the vendors down, another buyer will be along shortly.

BarleyGB

Wizimum wrote: »

UPDATE!! Following an overwhelming response that our plan was INSANE. I contacted the estate agent and withdrew from the purchase. Felt so bad on the vendor but after reading everyone's comments felt we didn't have a choice.

Thank you for everyone who took the time and effort to offer pearls of finiancial wisdom. You have changed the course of our lives. (Sounds corny but it's true).

We are now looking forward to being mortgage and debt free in less than a month. Very liberating!

Thanks for the update, it’s good to hear you reflected on the advice and I hope things work out well for you and your family.

Make use of some of the money saved (mortgage/credit card payments) and build up a nest egg using a tax effecuant vehicle (Pension/ISA)

babyblade41

so pleased to hear the update and a very wise decision, I think you will realise this in a month and feel totally liberated...maybe a cheeky holiday to celebrate

AnotherJoe

Well done for listening to reason when so many just take a position and stick with it come what may.
Your life will be so much simpler and you'll be better off. What's not to like.

capital0ne

Wizimum wrote: »

UPDATE!! Following an overwhelming response that our plan was INSANE. I contacted the estate agent and withdrew from the purchase. Felt so bad on the vendor but after reading everyone's comments felt we didn't have a choice.

Thank you for everyone who took the time and effort to offer pearls of finiancial wisdom. You have changed the course of our lives. (Sounds corny but it's true).

We are now looking forward to being mortgage and debt free in less than a month. Very liberating!

Well done, you won't regret it - my tip is, clear your credit card, open a SIPP and ISA each and fund each with your three quarters of excess income, and enjoy yourselves with the rest - you'll never get today back when it's tomorrow! BTW look at a SIPP as tax free money in (ie it comes out of your salary before HMG takes her 20/40/45% cut) and an ISA as tax free money out (ie - you've paid your tax, but all the proceeds are tax free! Income and capital gains!)

I get a lot of flak on this site (I ask for it from my alternative view posts) but in this case I'm glad you took all of our advice - in my case the complete hassle and expense BTL can be.

Good luck guys