Mortgage Contemplation

My mortgage statement says I owe £208,879.31 as at Sept 10. There was a time when I only owed 7 years repayments but then it seemed like a good idea to buy some land in Crete and build a house and so on. I don't regret building the house but nonetheless I know have a 22 year mortgage outstanding.

With both houses we have possibilities. If we chose we could sell the other house, pay off all the debt and have around £70k left over. Mortgage free in our forties.

Or if I was made redundant. Approx £50k redundancy payout then we could sell this house and move to the other with £120k in our pockets.

The value of the houses rental incoem will overtake the monthly mortgage payment within about another 18 months. We could then rent it out and let it take care of itself.

I currently overpay by £150 per month. according to my calculations that brings my mortgage end date forward from July 2032 to March 2029. Better but blatantly not good enough. Adding a further £150 to my overpayment amount every April (pay review time) helps a lot more. October 2021. Another ten years at my work, assuming I keep my job.

I could make extra money. The other house has never been rented. The landscaping is still outstanding, and will remain so for some time unless we have surprise windfall as part of the hill needs to be re-modelled. Some people would be happy to live there from time to time even with this restriction maybe. I think the problem is that it feels like my home not like a house I own. I am reluctant to allow someone to live there. Such a waste of potential income.

Back to selling my life on ebay I guess.

Comments

  1. It's difficult to know what to do Lizzie and I totally understand not wanting to rent 'your home' as this is something that I've really struggled with...but am I right in that your mortgage runs until you're 70 (forgive me if I'm wrong)...which could be a problem yes?

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