Hi,
I would like some advice if possible.
We are homeowners with an existing mortgage on our home. We purchased a house in 2004 as a Buy To Let Investment (saw it as a pension at the time). However, the rental income each month does not cover the mortgage repayments and it costs us approx. €300 per month to cover the shortfall & house insurance. I am concerned about the increase in Interest rates (in August 2005, we fixed our home mortgage and investment mortgages @ 3.74% for 2 years). I realise the rise in Interest rates will not affect our repayments until August 2007, but would like to be prepared as we are considering starting a family which will mean I will have to work part-time, thus a drop in earnings. I estimate in Aug 2007, we will owe approx. €175K on the Investment property (other similar houses have recently sold for €235K) and also approx. €16,000 on Credit Union Loan. Rather than having to spend another €200+ per month to keep the property, would we be better off to sell the property when the fixed rate term is up and use the proceeds (after Capital Gains) to clear the mortgage and credit union loan and maybe invest any balance in a pension?
Thank you.
I would like some advice if possible.
We are homeowners with an existing mortgage on our home. We purchased a house in 2004 as a Buy To Let Investment (saw it as a pension at the time). However, the rental income each month does not cover the mortgage repayments and it costs us approx. €300 per month to cover the shortfall & house insurance. I am concerned about the increase in Interest rates (in August 2005, we fixed our home mortgage and investment mortgages @ 3.74% for 2 years). I realise the rise in Interest rates will not affect our repayments until August 2007, but would like to be prepared as we are considering starting a family which will mean I will have to work part-time, thus a drop in earnings. I estimate in Aug 2007, we will owe approx. €175K on the Investment property (other similar houses have recently sold for €235K) and also approx. €16,000 on Credit Union Loan. Rather than having to spend another €200+ per month to keep the property, would we be better off to sell the property when the fixed rate term is up and use the proceeds (after Capital Gains) to clear the mortgage and credit union loan and maybe invest any balance in a pension?
Thank you.