Financial Planning

Roger175

With regards your second property your figures sound very similar to ours, but we have realised the dynamics of this have changed significantly in recent times. If like us, you are on a reasonably low mortgage rate, how long is it fixed for and what is it likely to be when you come to renew.

In our case when ended up as accidental landlords about 3½ years ago, when we choose to keep our former family home, having built a new house. At the time it seemed like a "no-brainer"! We have about £220k equity in the property which is worth about £400k. Had we sold the house at the time, we could get very little interest and by borrowing £180k on a BTL mortgage (£273/month), we could get £1,050 in rent. Obviously all subject to expenses and tax etc, but still a pretty reasonable return.  Roll on a few years and we are now thinking what the mortgage is going to cost us when it's up for renewal in early 2025, suddenly it doesn't look so rosy, especially when you consider we could now be getting say 4½% on the £220k equity by sticking it on deposit, totally risk free and if we can get it into ISAs as fast as we can, tax free also!

Our inclination now is to sell the property as soon as we can get our heads around the timing - notice to tenant, avoiding redemption fee on mortgage etc.

wjr4

Emergency fund? Life insurance? Income protection? Critical illness cover? Will? Powers of attorney? 

bownyboy

wjr4 said:

Emergency fund? Life insurance? Income protection? Critical illness cover? Will? Powers of attorney? 

I second the Wills and Powers of Attorney. 

We used the gov.uk site which takes you through the process step-by-step and is very straightforward and costs I think £90 per LPA (we did both Health and Finances each).

For Wills we used Farewell online service and created a mirror will and with a 20% off code it cost us £120 I think. 

We've unfortunately both seen how stressful and difficult it can be for family members if relatives don't have these in place.

Albermarle

and costs I think £90 per LPA (

Actually it is £82. So for a couple to set up both types for each other, costs in total £328.