Too many mortgages and too little time

As crazy as it sounds my wife and myself between us have 4 mortgages. Yes you read that right.


We got married in our 30's (7 years ago) and we both had our own houses at that stage - we first moved into my house for a year and then decided we would like to have our own place together.


In the meantime my wife received an inheritance of £40k which we decided on spending on an auction property (got an end terrace for £28k in an area with renovation grants available - got £15k of work done to get the house up to standard and was able to claim half of that back as a grant - so total outlay was around £35-36k). This house has been rented out since then for £400 per month. (£36k mortgage on house - value around £60k).


We mortgaged the auction property for £36k to add this to our savings to put down a £40k deposit on the house we currently call home (initial mortgage was £126k - house value between £185-200k).


My old house I have rented out (currently get £525 per month rent) and have been overpaying the mortgage for several years - I overpayed for this house and ended up in negative equity for several years (bought for £126k and probably worth £100k today) but through overpayments I now have the mortgage reduced to around £73500k.


My wife's old house (on interest only mortgage £55k - value around £66k) is also rented out for £400 per month - not currently paying the mortgage down as my wife is not as overpayment focused as myself (but I'm working on it).


In the last year we did some badly needed work to our home - moved rooms about, new kitchen/bathroom, etc however this all went way over what we had planned due to unforseen issues (need for steel beam, needed to rebuild chimney, etc.) so instead of the £30k we had budgeted for the final bill was around £45k. This has left us with a fair amount of debt - we got a home improvement loan of £25k and I put £10k of savings (all of it) to that. In the end I had to sell some Bitcoin to pay for our kitchen as we simply did not have the cash available to pay for it - it was a bit of a disaster all round.


Anyway - here we are - all the payments going out are currently leaving me with (checks bank account) - today £34 in my account to do me the next 2 weeks!


Overpayments I'm making are as follows -


Home - £200 per month
My old house - £150 per month


Credit cards - £200 per month (currently around £3200 to pay off from home improvements)


So my dream is to pay off our home's mortgage AND my old house's mortgage in the next 12 years (I'd be 54/55 years old at that point) which will leave us with £36k and £55k interest only mortgages - we then focus on those and either sell them (or sell one and pay off the other) within a short time frame (5 years max).


That would mean by 60 we would have at least 3 houses payed off with 2 (or 3) rented out giving us a monthly income of roughly £1350 per month which I think would be enough for myself and my wife to potentially retire on (or at least reduce hours) as we wont have the mortgages to pay until we get to state pention age.


Thats my rough plan although it's extremely tight at the moment - I reckon we will be tight for the next 3 years until we get the credit cards, home improvement loan and my car all paid off which will happen all around the same time freeing up around £950 per month which I could use most of towards boosting my overpayments which could shave another year or two off those mortgages and make it all happen a bit quicker.


Anyway I'll be interested to hear if there are any other folk on here in a similar situation - I've rambled on quite a lot!
I am insane and have 4 mortgages - total mortgage debt £233k. Target to zero = 10 years! (2030)

Replies

  • edited 2 June 2020 at 11:25AM
    hildosaverhildosaver Forumite
    327 Posts
    Ninth Anniversary 100 Posts Combo Breaker
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    edited 2 June 2020 at 11:25AM

    Hi everybody - I'm totally necro'ing this thread so apologies.

    So in the past year a lot has happened - some family tragedy very sadly and a change in my job (temporary promotion ending soon).

    We have been quite resolute in our goals in the past year and have managed to reduce what had been a £5000 credit card debt from home renovations (and car/property repairs) to £1700 (this will be paid off by November 2020).

    We also have managed to overpay my old home by £150 per month and moved into the 60's in terms of thousands left which was a nice feeling. I've only just managed to start overpaying our family home in the past couple of months and now overpay this £150 also - another fantastic benchmark was passed as we finally got down to 5 figures this month which felt great.

    I've also started to overpay our interest only property by £50 per month (not a lot I know but it's a psychological boost) and my wife will finally make her first ever overpayment on her old house this month also so it makes me feel good that the two interest only properties we own are at least finally starting to get the capital paid down - loooooong way to go though.

    Overall we have around £260k in overall mortgage debt which is a scary figure - we are currently reducing this by just over 1k per month and my big hope is that next year when I finally pay off my car and the last of the credit card debt will be gone we can get this up to at least £1500 with a long term goal of £2000 overall mortgage reduction within next 3 years.

    I am insane and have 4 mortgages - total mortgage debt £233k. Target to zero = 10 years! (2030)
  • SpoonKatSpoonKat Forumite
    15 Posts
    10 Posts
    Hi 
    Have you considered selling any of the properties to get to debt free sooner? 

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