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  • Property-a-holics

    Pay down to 25 percent LTV then stop?

    Just wondering what are the long term plans for those of you looking to hold onto property regarding paying down the mortgage?

    I've seen more than 25% reduced off the LTV since 2010 and it's much appreciated.

    With 15 years left on the mortgage, I'm wondering if it's worth getting it down to say 25% LTV and let inflation do the rest? I realise I can pay off no more than 10% per annum. I like a fixed sum each time I pay off - say £500 as this is not going to make too much difference in the long term and adds up over time as well.

    So for those of you planning on paying down, what is your plan?!

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    Zero leverage, 100% unencumbered is my target.

    I don't want to pay the b*stard banks a penny more in interest than neccesary and whilst in hock to them they effectively have a stake in my business.

    I get the inflation arguments, but I've reached a stage where I don't want to answer to anyone other than my customers and HMRC.

    I'll add that (unusually for me) this is an emotional/ego based decision rather than a numerical one.
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    I hear you JohnA!

    Mortgages are about as cheap as they've ever been, or ever going to be so it's a difficult balance to get but I understand your wanting to take another mouth to feed out of the equation.

    Unfortunately, prices in my locales are so crazy now mostly due to pesky investors (those scummers!), I'd have to put in more than 25% + nightmare stamp duty.

    £150k in fees/deposit/refurb etc. to buy a bog standard 3 bed semi = no thanks.

    Sometimes you've got to admit when the ship has sailed.

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    Great question –  my average LTV is 20% while I’m making a good income I am still concentrating on building the portfolio and will keep within this percentage for the foreseeable future, as we know property increases over the long term and will bring this down.

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    Out of curiosity what do you think the advantages would be of getting your LTV down to 25%
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    Maybe taxation S24 ect

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    S24 isn't a problem for me DL. With another purchase it would factor in more though, hence why I think I will hold off for the time being.

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    It's just a hunch of mine, but I feel if I can get down to 25% LTV then getting a mortgage extension will be easier, plus, hopefully, inflation will have bought the LTV down as well.

    I realise inflation and paying down will be going on in tandem, it's just to set myself a target of getting to where I want to be which is owned by me.

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    My own goal for personal property is 60% LTV over the next 10 years

    Inflation and some capital reductions are my way of doing this

    I am just arranging a remortgage on one of my Highly leveraged properties and I will be paying down some capital to get it to 75% LTV

    at present its around 85% LTV

    as time moves forward I want to have flexibility to pay down so I am not going for Capital and repayment I just want the facility to over pay as I go

    I think deleveraging is a good thing to do and if its done with care it can achieve a lot of security long term

    If you use capital and repayment / over payments on a 25 year mortgage and it was 75%LTV at the start in 10 years you should have a 60% LTV without any inflation so its achievable.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Zero leverage, 100% unencumbered is my target too.

    I'm expecting a global economic meltdown ahead with runaway inflation / interest rates, so I don't want mortgage debt when this happens.


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    I am looking to reduce the leverage on the properties I own in my own name. Partly to try to avoid S24 and partly to protect myself from possible interest rate rises. I am still using 75% leverage for my company properties though.

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