Options for spend saving or BTL 13 July at 11:00PM in Mortgages & Endowments 3 replies 77 views

mags1973

I would like help/advice with two things.
i would like to buy a house for an investment Max 80k And I would like to have the kitchen done in my house.  I have 25k in my account for my inheritance.
my mortgage isn’t due for a new deal until April 22.  I wanted to borrow additional funds for my kitchen but to do it would be 6k penalty or an interest rate of 5.9%. 

Do you think I should use the 25k to get my kitchen done and then when my mortgage renewal comes get an extra 25k added on for a BTL property (not even sure it you can do this).

Is this a mad idea?

foxy-stoat

If you want a £80,000 house for a BTL then you will need £20,000 cash for the deposit.  Have you crunching the numbers and worked out your yearly yields to see if its worth it?  

I think you should spend your £25K on your kitchen and sleep happier at night knowing you are not a landlord and not working for the HMRC.

dimbo61

Check the T&C of your mortgage but most allow 10% overpayment each year.
Get the best deals on your new kitchen and appliances and use any money left over to either overpay the mortgage or build up an emergency savings pot !

dimbo61

Check the T&C of your mortgage but most allow 10% overpayment each year.
Get the best deals on your new kitchen and appliances and use any money left over to either overpay the mortgage or build up an emergency savings pot !