Lexusgs430:


Not all lenders accepts overpayments, so speak to your lender enquiring if you can make overpayments........

Let's assume they accept overpayments, call your lender give them your debit card, so overpayment can be charged .......

OR

Collect your lenders bank details, using your mortgage number as a reference, then simply transfer.........

what I did in the bolded....shortened the term by 7 years with £250 monthly overpayment

ukay2:


This is what I like to see.... Stocks and Shares ISA.....one of the wonders any UK Migrants should not miss........currently near £70K minus LISA account


......Slow and steady INVESTMENTS win always.....

Are you Investing using a SIPP vehicle........ This is probably another wonder (only drawback is you pay a yearly charge to provider + you can't withdraw till you reach retirement age).....

Plus of SIPP - HMRC pays your 25% towards each deposit......
Minus of SIPP - You pay about £120 per year......

Lexusgs430:


Are you Investing using a SIPP vehicle........ This is probably another wonder (only drawback is you pay a yearly charge to provider + you can't withdraw till you reach retirement age).....

Plus of SIPP - HMRC pays your 25% towards each deposit......
Minus of SIPP - You pay about £120 per year......

No ooo

Using Freetradoe and Trading212 .....S&S ISA

I do individual stocks after due diligence

ukay2:


No ooo

Using Freetradoe and Trading212 .....S&S ISA

I do individual stocks after due diligence

You do same with a SIPP, but with a 25% sweetener from HMRC.....🤣

And some have mobile banking apps with overpayment option on one's mortgage account.

Icesnow:
How do we overpay pls? Does it mean we pay twice our monthly fee?

Santa2:
Completed on Friday, I don collect Key.

The guidance's received from this thread has been immeasurable. Started looking at properties last year April, we werent ready then, was just browsing to see what was available.

Late January we saw this property and decided to take the plunge, reserved in February and have been taking baby steps since as we werent in a hurry to complete, wanted completion to coincide with end of school term. Developers no gree for our pace.lol. We fixed with Barclays for 5 years at 4.55%, 10% deposit and 3/2-year residence in UK. Just before completion we checked if the rate had gone down but naaa, it was up to 4.83 or thereabout.

Its still surreal to me.

Thanks to every one that keeps spurring newbies like us on. I remember the rent money/dead money arguments on the other thread sometime ago. while some would take it as offensive others would see it as motivation. Na so life be. If I start to mention names for here we no go comot today, Lexus, Ticha, Lagosishome, Solumtoya, profemebee, Peerielass, Pearlyfaze, Estroller.. Na God go bless una. To Semmyk wey start this thread, thank for curating all those resources, you are special one, And I hope you doing great.

Congratulations on your new home.

Congrats @ Santa2.

I'm wondering if anyone here is involved in BTLs. Mention if you have. I'm in the south and running some numbers but things are look steep with the current mortgage rates. I'm not keen at fixing for 5 years at this rate. Want to get some nuance and see what the average margin is.

I remember someone (deept I think) once mentioned a Nigerian in UK investment thread or something similar. It would be worth knowing what proper investment/income generating opportunities there are in both our homes (9ja and UK) moreso ones that are also suited to our demography. I've heard of folks who buy written off cars and fix and sell for a profit, also Nigerian stores e.t.c.

i will be lying if i said i understood this lol

pls can you explain with an example (even if it is with dummy data)

thanks.

shaybebaby:


Absolutely education is needed on this, I agree.

Although it is a bit more nuanced depending on the wider economic environment. I mean now, the base rate is 5.25. If your mortgage rate is lower than savings rate you can achieve, you are better off saving any spare cash to then pay a lump sum when you come to renew your deal.

Overpayment makes sense if the cost of servicing the mortgage exceeds the return you can make investing the cash elsewhere for the same duration.

My renewal comes up later this year, so I've got my cash sitting in an easy access account paying me interest above my mortgage rate. At renewal, that money will be used to pay down an extra bit of capital.

Recently got a fixed rate of 4.66% for a period of 60 months, Duration of the loan: 35 years with TML. Hope this helps

jedisco:
Congrats @ Santa2.

I'm wondering if anyone here is involved in BTLs. Mention if you have. I'm in the south and running some numbers but things are look steep with the current mortgage rates. I'm not keen at fixing for 5 years at this rate. Want to get some nuance and see what the average margin is.

I remember someone (deept I think) once mentioned a Nigerian in UK investment thread or something similar. It would be worth knowing what proper investment/income generating opportunities there are in both our homes (9ja and UK) moreso ones that are also suited to our demography. I've heard of folks who buy written off cars and fix and sell for a profit, also Nigerian stores e.t.c.

and it seems there is a maximum amount or % one can pay per year for the overpayments (varies for each provider)?

Lexusgs430:


Not all lenders accepts overpayments, so speak to your lender enquiring if you can make overpayments........

Let's assume they accept overpayments, call your lender give them your debit card, so overpayment can be charged .......

OR

Collect your lenders bank details, using your mortgage number as a reference, then simply transfer.........

jedisco:
Congrats @ Santa2.

I'm wondering if anyone here is involved in BTLs. Mention if you have. I'm in the south and running some numbers but things are look steep with the current mortgage rates. I'm not keen at fixing for 5 years at this rate. Want to get some nuance and see what the average margin is.

I remember someone (deept I think) once mentioned a Nigerian in UK investment thread or something similar. It would be worth knowing what proper investment/income generating opportunities there are in both our homes (9ja and UK) moreso ones that are also suited to our demography. I've heard of folks who buy written off cars and fix and sell for a profit, also Nigerian stores e.t.c.

Guess this thread can fulfill that purpose

profemebee:
i will be lying if i said i understood this lol

pls can you explain with an example (even if it is with dummy data)

thanks.

Here you go, play and enjoy. The app will shop you how overpaying monthly or lump sum overpayment will affect your mortgage.

https://www.natwest.com/mortgages/mortgage-calculators/mortgage-overpayment-tool.html?q=mortgage+calculator&brand=NATWEST&section=personal&enginekey=wYnTjXmfABgYKBU6GMG3.

Lexusgs430:


One education I did not receive, was gradual overpayments, pushes down the term and interest payable (it was not massively talked about)......

I hope future landlords, subject to extra cash + mortgage terms, would cultivate the habit of overpayments .......😲😞

This is something I have been looking at and discussed extensively with the mortgage advisor when we were going through the process to ensure it was included. Omo that your LTV mad Oooo, Make I come tap anointing. You are practically Mortgage free. One question though, when you are 100%, Would you go back in again i.e get another property/mortgage (I know this varies with personal preferences) abi na to dey Jaiye loo.

profemebee:
and it seems there is a maximum amount or % one can pay per year for the overpayments (varies for each provider)?

Usually 10% of the balance per year of the mortgage. Anything over that is likely to trigger an early repayment charge.

profemebee:
i will be lying if i said i understood this lol

pls can you explain with an example (even if it is with dummy data)

thanks.

Haha. Okey doke, I'll lay something out when I'm done with work for today.

bless you .. thankssss

will look through it.. we must learn something new everyday

deept:


Here you go, play and enjoy. The app will shop you how overpaying monthly or lump sum overpayment will affect your mortgage.

https://www.natwest.com/mortgages/mortgage-calculators/mortgage-overpayment-tool.html?q=mortgage+calculator&brand=NATWEST&section=personal&enginekey=wYnTjXmfABgYKBU6GMG3

currently building a one stop shop website/app where someone can get basic education or info about mortgages and calculators like this all in one place but i've been demotivated and busy.

Santa2:


This is something I have been looking at and discussed extensively with the mortgage advisor when we were going through the process to ensure it was included. Omo that your LTV mad Oooo, Make I come tap anointing. You are practically Mortgage free. One question though, when you are 100%, Would you go back in again i.e get another property/mortgage (I know this varies with personal preferences) abi na to dey Jaiye loo.

We have 2 other BTL properties, but on the family home, it simply would remain mortgage free for life.... My children would have a property they can do whatever with, when we kick our cups ....... 😂😜

profemebee:
bless you .. thankssss

will look through it.. we must learn something new everyday

If this thread exists, and people don't learn new tricks......

Wetin we gain, even an old dog, can learn new tricks....... 😂😜

profemebee:
i will be lying if i said i understood this lol

pls can you explain with an example (even if it is with dummy data)

thanks.

If your mortgage rate is say 2.5% and you can access a savings account yielding say 5%. Instead of overpaying on that 2.5% mortgage, you'll keep the overpayments in the 5% savings account and make the overpayment with the accrued sum in your 5% savings account at the end of your fixed term. The strategy only works if you can get an interest rate on a savings account that is higher than your mortgage rate, so it'll be a bit difficult to pull in this current "high" interest rate clime.

Lexusgs430:


We have 2 other BTL properties, but on the family home, it simply would remain mortgage free for life.... My children would have a property they can do whatever with, when we kick our cups ....... 😂😜

Come and adopt me abeg .. Nice one Baba Lexus, you & madam have done well for your selves, Keep being a guiding light to those of us coming behind. Just like Jedisco I have also been wondering about BTL. Can I open a company strictly for BTL and get mortgage on the newly opened company(assuming I have the 25% deposit usually requested). Or is BTL usually best as an indiviual/couple. Could you give a rough overview of BTL best practise. Best way to set up, pitfalls to look out for etc.

Santa2:



Come and adopt me abeg .. Nice one Baba Lexus, you & madam have done well for your selves, Keep being a guiding light to those of us coming behind. Just like Jedisco I have also been wondering about BTL. Can I open a company strictly for BTL and get mortgage on the newly opened company(assuming I have the 25% deposit usually requested). Or is BTL usually best as an indiviual/couple. Could you give a rough overview of BTL best practise. Best way to set up, pitfalls to look out for etc.

Either would work, it depends on what you want to do considering the tax implications, tax efficiency, complications and legalities........

Our BTL's are rented out to family members at zero margins....... So at the moment, we only benefit from equity appreciation + them looking after the properties......

Our BTL's are owned individually (nobody knows the future)........😂😜

Lexusgs430:


Either would work, it depends on what you want to do considering the tax implications, tax efficiency, complications and legalities........

Our BTL's are rented out to family members at zero interest....... So at the moment, we only benefit from equity appreciation + them looking after the properties......

Our BTL's are owned individually (nobody knows the future)........😂😜

Wetin be btl no vex.

Regex:


Wetin be btl no vex.

Buy to let ........

Santa2:



Come and adopt me abeg .. Nice one Baba Lexus, you & madam have done well for your selves, Keep being a guiding light to those of us coming behind. Just like Jedisco I have also been wondering about BTL. Can I open a company strictly for BTL and get mortgage on the newly opened company(assuming I have the 25% deposit usually requested). Or is BTL usually best as an indiviual/couple. Could you give a rough overview of BTL best practise. Best way to set up, pitfalls to look out for etc.

Consider tax implications of you setup BTL in personal names because you are liable for tax on your btl income. Assuming your are in the higher tax band say 40% you will pay tax 40% on the the entire rental income before mortgage payment. Mortgage used to be tax deductable until a few years ago.

You will usually be advised to set up BTL under a company then you can remove cost before before tax, corporation tax in this case. But you will still be liable for tax for whatever you pay yourself, I think the first 500£ is tax free.

Disclaimer: Consult a financial advisor for proper advise.

Morning all,

Looking at moving from further north and buying a first property in either Manchester and Sheffield.

Can anyone suggest the good affordable neighborhoods in bith cities suitable for young families with good schools, amenities etc. ? Manchester is the preferred though.


Thanks.

thanks for the example.. very helpful.. i need to research on savings account with better rates.. and hopefully not taxable .. like ISAs

Estroller:


If your mortgage rate is say 2.5% and you can access a savings account yielding say 5%. Instead of overpaying on that 2.5% mortgage, you'll keep the overpayments in the 5% savings account and make the overpayment with the accrued sum in your 5% savings account at the end of your fixed term. The strategy only works if you can get an interest rate on a savings account that is higher than your mortgage rate, so it'll be a bit difficult to pull in this current "high" interest rate clime.

profemebee:
thanks for the example.. very helpful.. i need to research on savings account with better rates.. and hopefully not taxable .. like ISAs

Yes if the interest ≤ your personal savings allowance (PSA). You can earn up to £1000 in savings interest tax free as a basic rate tax payer and £500 as a higher rate tax payer. No PSA for additional rate tax payer.

deept:


Consider tax implications of you setup BTL in personal names because you are liable for tax on your btl income. Assuming your are in the higher tax band say 40% you will pay tax 40% on the the entire rental income before mortgage payment. Mortgage used to be tax deductable until a few years ago.

You will usually be advised to set up BTL under a company then you can remove cost before before tax, corporation tax in this case. But you will still be liable for tax for whatever you pay yourself, I think the first 500£ is tax free.

Disclaimer: Consult a financial advisor for proper advise.

Thanks or putting this into perspective!

Bourne007:
Recently got a fixed rate of 4.66% for a period of 60 months, Duration of the loan: 35 years with TML. Hope this helps

Is this BTL?
If it is, is it repayment or interest only? Also personal or via ltd co?

My main considerations are the yield and margin between mortgage and rent. Around me, for basic BTL (i.e non-HMOs etc) it's about 4-5%.

deept:


Consider tax implications of you setup BTL in personal names because you are liable for tax on your btl income. Assuming your are in the higher tax band say 40% you will pay tax 40% on the the entire rental income before mortgage payment. Mortgage used to be tax deductable until a few years ago.

You will usually be advised to set up BTL under a company then you can remove cost before before tax, corporation tax in this case. But you will still be liable for tax for whatever you pay yourself, I think the first 500£ is tax free.

Disclaimer: Consult a financial advisor for proper advise.

Hehe @the usual caveat.. most everyday folks looking to invest would not have enough to interest an advisor or even afford one.

A ltd co is the sensible way to go about it for most. I'm in the process of setting a property one up. Already, I'm often work as an independent contractor via a my ltd co hence the whole process is not new to me.

If the investment outlook is for the longterm, or to reinvest profits to build a decent portfolio, then BTL would work out much better for most. If one already has a main job hence not needing to dip in often then a ltd co offers many tax efficient means of deploying profits...

Interest-only can seem affordable but capital isn't shrinking. Repayment works out for me even though I'm paying more on a ltd co.

jedisco:


Is this BTL?
If it is, is it repayment or interest only? Also personal or via ltd co?

My main considerations are the yield and margin between mortgage and rent. Around me, for basic BTL (i.e non-HMOs etc) it's about 4-5%.

Boss!!!
I'm also looking to buy a house in Manchester with my young family, M20, M15 and M16 is okay for young family but affordability be my problem. I'll go for M9 or M40 jeje because it's cheaper, family friendly and Niger vibes.
Equity appreciation wise Manchester is more better than Sheffield.... my opinion though.

domin8:
Morning all,

Looking at moving from further north and buying a first property in either Manchester and Sheffield.

Can anyone suggest the good affordable neighborhoods in bith cities suitable for young families with good schools, amenities etc. ? Manchester is the preferred though.


Thanks.