Comments on: I Raised £15,000 To Help Reduce My Mortgage

By: The Landlord

The Landlord — Tue, 11 Sep 2007 23:38:51 +0000

Hey Stephanie,

Thanks for your thoughts. You’ve definately given me something to think about.

I have to admit, i’m swaying towards the prospect of purchasing another property. So tempting.

The only reason I wanted to switch to repayment was so I slowly reduce the mortgage each month. At the moment, with interest-only, all i’m gaining is equity (as long as the value of the property increases). With repayment, I will gain both the equity from a value increase, and I will be reducing my mortgage, without having to make lump sums.

Once again, many thanks!

By: stephanie

stephanie — Tue, 11 Sep 2007 20:32:35 +0000

I have just learnt recently that its better to have an interest only mortgage and pay off amounts (the mortgage has to be a flexible one). The theory, in a repayment mortgage you don’t touch the capital normally for the 1st half of the mortgage as you’re just paying interest. If you take an interest only mortgage, pay the interest each month and then make lump sum payments off the capital – thus reducing the capital amount outstanding immediately and reducing interest only payments – everyones a winner. You have to be strict with making the payments each month. The best advice is buy another property. If you gain 10% increase on one property in capital in one year then you double this with 2. Food for thought – well done, you should be proud of your acheivement!!

By: Badger

Badger — Tue, 11 Sep 2007 17:21:02 +0000

LOVE YOUR WORK AISHA

By: Aisha

Aisha — Tue, 11 Sep 2007 08:44:46 +0000

Wow, Good for you! I honestly think you should take a Grand out of that and give it to a charity, then spend the remaining money investing in property :) !

Why not give someone else who might be needy, a reason to smile while you smile about your next investment? :)

In any case jaani, you worked hard and the reward has definitely been worth it! Keep smiling.

*High Five*

By: V

Mon, 10 Sep 2007 15:58:15 +0000

Hey M,

Well done!

Now take that 15k and put it into a 100k 1 bed property (flat)!

They will give you the best returns on your investment and the liquidity on flats is always good.

Make sure to choose a good area where the demand is good(but I am sure you know that already)!

Good Luck.

By: Badger

Badger — Mon, 10 Sep 2007 11:17:40 +0000

Well done buddy, go and piss it up the wall having a good time. lol,
Get another property man its the only way to go. Its all about the asset

Badger