Moving on with things

maggiem

So very please to read ‘I deserve my family’ - hurray and very well done 👏 👏👏

FootyFanDan

👏 absolutely amazing post to read, and I am so glad to read you acknowledge your worth to the family. Good on you @alt80

alt80

Thank you all. Looking forward to a quiet Friday and weekend ahead. Weather is forecast to stay nice too.  

Whilst I was not looking for a pat on the back, support is appreciated and certainly better than a row ha @daisy_1571

Humdinger1

Utterly wonderful to read this @alt80.  You're inspiring. Was it TS Eliot who wrote (in summary) that the end of all our psychological journeys is to return to where we started and recognise it for the very first time? Humdinger x

alt80

Had a quiet weekend, although managed to have a BBQ before the weather started to turn. Not sure we'll be eating outside over this coming week.

Had a conversation with my wife about the mortgage.
Our best switch option is onto a 4.19% 5 year fixed rate repayment which comes in at £3,480 for a 20 year term. That would make my last payment the same month as my 65th birthday. Whilst it is somewhat arbitrary, I like the idea that when I reach the traditional age of retirement I will own my home outright, even if it is unlikely I will choose to take retirement in the traditional sense. However, I can extend the term to 25 years which would take some of the pressure off.  
I was also considering sticking the lot on interest only with a view to clearing it when possible and having some flexibility in the mean time. If the worst happened and we didn’t have the ready cash to clear the balance I would need to clear it using my other property investments. However, my wife wants me to take out a straight repayment. A lot of her reasoning is her family's scaremongering but tbf I get that it could be far too easy to make no inroads and it would be better for us to retain the property income in the long term. 

She also wants me to pay out a little more now at the expense of the SSAS with her reasoning being that we are better with more money in our pocket over the coming years to enjoy time as a family whilst we have both the mortgage and school fees and when I’m in my late sixties we won’t need so much income because we won’t have the mortgage as it’ll be paid. I also will have some personal debt again because we've just bought an AMG to replace the leased EQE so there's another expense. If we did take the option to pull more month to month now there'd be around £1.5k per month going into the SSAS. My aim is for £3k to go into it and most months it does but I struggle to see that as realistic if I do take the 20 year repayment option. Idk it very much feels like gambling with her and our son's future - that money is ultimately for them. I want to give my son options I never had and for him not to have to take massive risks or know what it's like to have a lot of debt, equally I don't want to miss out on our family holidays. 

I still have a lot in the way of personal and business debt even though it's practically all mortgage debt, it's still a lot all with personal liability. I remember a conversation I had on here and I reacted badly; someone who told me they earn a similar income but have a tiny mortgage, no school fees, employed so no business related ups and downs, no personal liability for BTLs etc. If I'm honest I was envious of the lack of financial commitments even though they were honest about not having the lifestyle. All a choice really, I know. 

@Humdinger1 I meant to respond the other day - yes it was. You had me thinking about that a fair bit and I think he was right. However, I think whilst we can look back at something anew, nothing is ever fully resolved. I certainly have to work on things everyday. 

Sarahwithlove

My personal preference is always repayment as you're paying off the loan so interest goes down each month so more paid off the debt. It becomes easy with interest only to say oh we will make a payment but then something always crops up. Whatever you do it needs to be what makes both you and your wife happy. 

alt80

@Sarahwithlove I know exactly where you’re coming from. 

The previous house was repayment and that mortgage was ported here 1.4% … those were the days eh?! Prior to that house I was always on interest only and built equity through refurb projects which allowed me to move up the ladder. 

£3.5k a month seems like a lot of money - back when we could get the money for home mortgages at 1.4%, £3.5k would get me into a lot more than an £850k house. We love it here don’t get me wrong, it just seems harder and harder to get on in life - more tax, more interest etc. 

When we decided we were going to buy the Mercedes the other day I was shocked just how high the rates are and how much car prices have gone up. Or seem to have done so? First time in many many years I have not bought a car brand new (apart from the MGB I bought off our friends and the Mk2 Jag but buying a 1960s car is a bit different). The brand new options from Mercedes all seemed to be losing a lot of money quickly too but the old C63 is a lot prettier, better engine and holding its value so long as the miles aren’t being piled on. My wife isn’t really sure it’s the best move- the EQE is a lot bigger and is a 4 door saloon rather than a 2 door coupe but who knows how they are going to start taxing the EVs now they’re more popular not to mention the depreciation - I’m very glad that the EQE was a business lease, it’s tanked in value. 

Sarahwithlove

At least with repayment though the interest goes down every month. So like I said the more equity you build. It's also peace of mind for me. Pay it off whilst I can and then option to switch to interest only in future if needed. 

Cant really comment on cars other than that I'd never buy a brand new one again. I don't get the whole penalising for using electric cars, you'd think they would want more doing so. 

alt80

@Sarahwithlove I suppose it's knowing I've got a fall back to pay it off by liquidating my other property so we wouldn't be in a position that meant we had to sell our home and buy something at a lower price point. Equally, I know what you mean, if I made no payments towards the principal, they'd see nigh on £600k off me just for the pleasure of lending me £565k with the £565k still owing. That's vs just under £1.05M off me on a repayment basis. Disgusting how much they have, now interest on the home mortgages are as bad as BTLs - they'll get hard into 7 figures off me with this and my other property. Tbf I see a profit from the BTLs so it seems a bit more palatable but everyone has no choice but to get a home mortgage unless you're fortunate enough to be born into generational wealth. 

When we decided to lease the EVs we could reclaim VAT and the BIK was laughably low. Now we can only claim 50% of the VAT and the BIK continues to rise. They are still advantageous but for how long? Seems unpredictable to me. Plus we don't need two everyday cars anymore, I don't drive that much still. I do realise how much the stupidly low home mortgage rates allowed me to make a lot of stupid decisions with buying cars in the past. Looking back I should have stopped driving years ago and just bought a Conti GTC back when the rates were so low for my wife and I to share; got it paid for rather than thinking we needed an everyday car, sports car and a Range Rover. 

Sarahwithlove

There's a lot I'm sure we would all do differently given the chance. 

You are lucky in that you would have a property portfolio you could sell. But do you want to be in the position that you are relying on this if needed? Selling property also takes time and wouldn't give instant access to funds. Like I said its just personal preference. But then I feel same about leasing a car, I want something to show for it at the end.