A new season

savingholmes

Hope you're doing okay. 

Starlight_at_Sea

Hi @Baileys_Babe @savingholmes thanks for popping by. Yes, things are very full on, but my head is (just about) above the water. 

We are very close to exchanging now and this is exciting, a huge relief, but also very, very daunting. I have never had such a huge mortgage before, and it feels fairly surreal. One thing helping me stay calm is the progress made on my main house, as the mortgage there has just tipped under £80k. When I look at the deposit and costs I have built up  for the second purchase, I would be under £50k if I had saved that much and put it all towards the one property.  Close to the homeward straight. 

Instead.... just about to jump into purchase of the Flat as well. So, some numbers.

House:
Borrowed £101,840 in Dec 21 fixed at 1.19% until January 2025. 
I may overpay by up to 10% (of loan outstanding on each anniversary) and did funnel overpayments towards it last year, once I had cleared debts and before I started looking seriously at a second purchase. The current outstanding amount is 79,472. My loan term at Dec 21 was 8 years; I haven't calculated the current end date. I repay £1099 per month.

Flat
Brace yourself! 
I am borrowing £292,520 on a 5 year fix at 4.68 until 30/06/28, with a 25 year term which I am hopefully going to bring forward significantly once the mortgage is repaid for the house. I will be channelling any possible overpayments towards this mortgage given the much higher interest rate! Mortgage payments are £1653 per month. I may repay up to 10% of the original loan amount. 

There is a period of my life at the moment where having a base and living in two places will be very helpful. It won't last forever and I can see myself making a decision about the two places (or indeed, somewhere else completely) in the future. 

At the moment I have a couple of lodgers sharing the House with me and their income covers the mortgage most months but not running costs, I am looking at renting a room in the flat too, which would help offset your mortgage (but would take me over the rent a room scheme allowance). I need to think this through a bit more especially as we have a lot on just now, but there is definitely potential to help offset the mortgage with rental income for the flat in the future. 

Gulp! 

savingholmes

Gulp indeed. 

I felt overwhelmed when I bought Ex out and took on a mortgage of £202K by myself. It felt impossible but I'm now 19 payments in and its been okay. It sounds like the lodgers will help a lot.

Good luck with it all. Make sure you have the right home insurance.