SLLM (Single Lady Large Mortgage)

RachP87

Hi Ladies, Sorry to hijack this thread/change the subject, I just wondered if some of you could share some of your experience and advice?

I am concentrating on overpaying my mortgage at the minute, I am 34 and don't want to be working up until I am 68, I also cant stand the idea of being in so much 'debt' as it makes me panic, so trying to overpay as much as I can until I feel comfortable. I am overpaying around £800 each month, sometimes slightly less or more depending on overtime or Birthdays to buy for lol 

My current mortgage is 15 years so should finish by the time I turn 49 anyway, but lately I have been thinking, should I be saving the overpayments instead to buy another place, for a rental income? Although I am slightly worried about being a landlord just because of the mess and damage I have seen people leave rental properties in so I am not even sure if this is a route I want to brave!

I can become quite obsessive over things and its become a bit like a game for me now to try and reduce it as quickly as possible, which is a good thing in some ways but then can also make me lose focus of the bigger picture and if there is a better way.

I have a spreadsheet that tracks everything to do with my mortgage, I am currently just over 5 months ahead on payments and should be just over 2 years ahead at the end of my fixed term deal (2 year fixed) if I stick to my budgeted overpayments. I will also be in a lot lower LTV which is more what I was hoping for, to try and get a better interest rate. If I don't make as large overpayments, I will probably still be in the same sort of Interest rate and only probably 10/11 Months ahead by the end of the fixed rate (Based on the price of the house staying exactly the same for LTV)

I don't even really know what I am asking, I guess I just want to see what other people are doing or would do, Is it better to be mortgage free as soon as possible and then focus on what to do?

badmemory

If you are worried aboout being a landlord & what can go wrong it seems to me that it is not for you.  How good is your pension?  The longer the money is in there the more it can grow before you need it.

MaddyHale

It is a tricky one @RachP87 I am a landlord and it can be tricky to manage letting agents. My tenants have been fine my letting agents have not. It gives you options when you have a BTL property and it diversifies your investment portfolio. I was reading this thread https://forums.moneysavingexpert.com/discussion/6317414/can-i-should-i-board-the-fire-train/p1 about a person with 2 BTLs and his plans for them. And I thought, I like that!

MaddyHale

And I do like property by the way

RachP87

Thank you both for your replies 

@badmemory my pension is fairly decent, I pay around £12K a year into it plus tax relief. I could up this but tbh, without being too morbid, I am set to inherit my nans house and I’m lucky enough that both parents are pretty well off with multiple properties - and no matter how much I insist they sell some & enjoy their lives now, they seem obsessed with making sure I am ok! Which is also partly why I’m hoping to make the most of my money, so I can convince them to enjoy themselves 

@MaddyHale oh thank you for that link, very interesting read! I do love renovating property, I’ve totally redone my house as it was totally run down when I bought it, and I like the idea of getting another to renovate it’s just if tenants destroy it, I’m going to be upset after my hard work lol

Good to hear your tenants have been fine though, I was hoping that using a lettings agent might have made it easier but obviously not in all cases 

badmemory

You could always get into buying a property & doing it up & selling it on, rather than keeping it if that interests you.  You don't have to keep it unless you want to move into it.

Sistergold

Oh hello @RachP87, no you are not hijacking at all and those are really good questions. We all go through the cycle of high end OPs and lower OPs while trying to see better places to put our monies. OPing can be exciting and obsessive but you are right we need to look also at the bigger picture. I am also at the stage you are at where I want to pay my max to bring down my LTV for the next time I need to remortgage. Just few days ago I increased my OP to £999.99 which is what I am allowed as a maximum per month and yes it can not be paid as £1k! I am not sure how long I will make this higher OP but however long I OP will always be a plus and I can stop when my focus is on putting the money elsewhere.

I have also been saving into a building fund but I have also been toying with the idea of using the money to buy a BTL instead. I have had a BTL before jointly(in the UK) with Mr Ex and we did have good and bad experiences but it’s not enough to put me off completely. One tenant did trash the place and did not pay rent for a while so by the time we went through the courts they owed us around £10k. They left loads of rubbish in loft, sheds and house also needed to spend almost £20k for a complete refurb. All other tenants were fine and we did not make a loss overall. Estate agents can be erratic but you just keep trying. 

Buy to let’s has its ups and downs like any “business” and sometimes can be that you should not do it if you are fainthearted as there can be some nerve wracking periods. 

For me I do plan to get back into it if I spot the right property. I am aiming for next year sometime. 

savingholmes

Really interesting discussion thanks all

RachP87

Thank you @Sistergold its nice to know I am not the only one who goes through the cycle of high and low OP's.

I have been following this thread for a while and read all of your updates, you all as you all have such great advice and seem so well organised! 

Glad to hear that the bad experience wasn't enough to put you off, and that you made a profit overall - sounds like there are more decent tenants than not so decent, hopefully. 

I quite like that idea of doing them up and then selling @badmemory I didn't even consider this before!

I think I am going to stick with the higher overpayments just for now, to try and get to the lower LTV like sistergold for the next year or so, and hopefully my interest will come down enough that I feel more comfortable and then focus on the flipping houses.

Sistergold

@RachP87, yes there is a wonderful meeting of like minds here. Everyone on here really do give wonderful ideas as to how we can move our lives forward as woman with complete control of our finances. It’s not a bad idea @RachP87 to press on until you reach your desired LTV. Also to be honest if a better idea comes along you just stop the OP or reduce it. Xx