New mortgage

[TykeMerc]

^This

In the spirit of the earlier post please STFU, not like there is any debate about your credentials on the sockpuppetry front either.

[ChimpMaster]

I have just got confirmation that my mortgage has been approved which is great.

I am excited as it is a new venture for me as I will be renting out my current house.
However if the truth be known I am nervous as well.
Currently my mortgage payment is only £398 a month but that will rise to £1,071 on the new property.
My day rate is good, at £330 a day and have done the maths and can even afford to overpay each month but has anyone else done the same as what I am doing? Is it normal to feel nervous?

NatCat

Yes.
Yes.

But only you know how secure your income is likely to be in the medium/long term and you have to weigh this up against what is effectively a long term debt. Perhaps your partner also contributes, in which case you aren't so reliant on a single income.

£1,000 / month is not a lot for a mortgage these days, and depending on your personal circumstances you might want to overpay as much as possible - though hopefully you will have secured a very low interest rate and so might even consider investing surplus income elsewhere.

As for the current house that will become your BTL, you would have wanted to maximise the loan on that property to fund your new residential home. This is because the loan interest on the BTL will be tax deductible, but you also need to be aware of the recent budget changes proposed by the Chancellor.

[fullyautomatix]

Okay, how long before Cojack takes a look at the OP, sees Kitten in the username and then scrambles to adopt the OP under her wing and nurture her and protect her against the abuse ?

Wont be long before the ban hammer is out to stop posters outing the sockie.

Who thinks there is a strong similarity with GittinsGal, if it smells like a sockie, talks like a sockie and behaves like a sockie, it is a sockie.

[vetran]

Oh veteran , I can't mtfu as I am female, that would be odd! [emoji16]

That's the problem with ignorance & prejudice there is so much of it about

https://en.wikipedia.org/wiki/Womyn

[SpontaneousOrder]

Oh veteran , I can't mtfu as I am female, that would be odd! [emoji16]

Woman is man too.

[NotAllThere]

Okay, how long before Cojack takes a look at the OP, sees Kitten in the username and then scrambles to adopt the OP under her wing and nurture her and protect her against the abuse ?

Wont be long before the ban hammer is out to stop posters outing the sockie.

Who thinks there is a strong similarity with GittinsGal, if it smells like a sockie, talks like a sockie and behaves like a sockie, it is a sockie.

Definitely not a sockie. Continually hounding as a sockie, someone who is known to not be a sockie would result in a ban hammer outing.

[SueEllen]

Woman is man too.

WGAF?

[northernladuk]

To the OP. You have taken in to account the following things...
Dividend tax for Apr 16
Changes to travel and subsistence Apr 16
No long allowed to claim mortgage interest against profits from Let Properties?

Dunno how you much your travel is but the rest should set you back somewhere around 3 or 4k a year at a guess.

[Kitten1978]

Just ignore these buffoons, every newish poster that comes on here gets slagged off, the only winning move is to pretend you're a 20 year seasoned contractor and mention all the thousands of gigs you've done, recruiters you've beaten up and left in a ditch, etc.

I think the only person that can answer your finance question is yourself, by estimating how much of the year you will be working, and what your other outgoings are.

My base mortgage payments are about 750/month and I was comfortably paying them with money to spare on my permie salary, so I am sure a little more would be fine when you're earning 2-3 times as much, but as I say, you need to crunch the numbers.

You also need to consider how much rent you'll be getting from your other property as that should help, and also the term of the mortgage - those payments are quite large and you will be paying a lot of interest if it's a 25 year term. Perhaps a smaller mortgage/property with a smaller mortgage term (same payments) would be more cost effective?

Too many variables but food for thought

Well I have to say I am most disappointed with the rudeness of some of the members on here!
I am nervous by nature, I was nervous about making the jump into contracting from perm, so not a surprise I am a bit nervous.

It is a shame as I thought many other people on here would offer their advice.

[Platypus]

Well I have to say I am most disappointed with the rudeness of some of the members on here!

So post in one of the professional forums, such as Accounting/Legal for non-rude helpful answers.