I am recently divorced. I bought a small 2 bed family home, with need to extend and add another bedroom in a couple of years when children older.
As a divorced mom of 2 dependents getting loans/ mortgages more difficult.
I have an investment property I am thinking of selling to pay off 37k in debt, the debt causes me to struggle to make ends meet at present. Looking to future- proof ourselves a bit from potential recessions/ job losses now that finally have equity in property after 20 years. I am concerned with climate change,the apartment is near a river and may become part of flood area in future.
Tenants have been there less than 6mths and have been notified- now unresponsive to contact. After 6mths will be hard to ask tenants to leave, landlord rights more difficult now, and less flexibility to sell when I need to.
My original plans changing due to climate concerns. I had hoped to retire early and live in property in my retirement and divide house between my children as expect they will struggle to afford property in the future. However keeping the property allows investment to grow/ keep up with inflationary pressures, though really it has not valued up as much as I'd hoped since purchasing in 2002.Gone from 220k to 260k in 19 years). Capital Gains will eat away at profit too. Is it really worth selling?
Selling it enables me to breathe a sigh of relief and enjoy the present, invest money I pay towards debt to other investments that might be more lucrative/ more than make up for inflation.
Do I secure my finances for the present moment, or do I secure them for the future/ retirement?
Age: 46 (plan to retire at 57 from company but keep working part time for myself).
Annual gross income from employment or profession: 90K
Monthly take-home pay: 4k
Type of employment: Full time employee
In general are you:
spending more than I earn- automatically save into accounts for emergency fund (5k saved), yearly family holiday and family events (christmas/ kids bdays).
Rough estimate of value of family home: 450k
Amount outstanding on your family home mortgage: 220k
What interest rate are you paying? Tracker + 1% on most of it, 2.5% on 80k of it. Mortgage us 1,115 pm
Rough estimate of value of investment property: 260k
Amount purchased at (for capital gains tax reasons): 220k off the plans in 2002.
Amount outstanding on investment property mortgage:170k
What interest rate are you paying? Tracker +0.85% on most of it, 4.5% on 40k of it due to two top-ups to buy previous family home before divorce (bad idea!)
Mortgage is 1,250 pm
only 12 years mortgage left (Bank won't allow me to extend as tracker mortgage)
Other borrowings –
12k 0% credit card
18k car loan (credit union)
7k business loan
In process of Refinancing these into one loan at the moment with credit union
Savings and investments: 5k savings in credit union, held hostage with my loan.
Do you have a pension scheme? Yes 7% + employer match 8% + 5% AVC
Do you own any investment or other property? No
Ages of children: 9 and 12
Life insurance: Yes through work.
As a divorced mom of 2 dependents getting loans/ mortgages more difficult.
I have an investment property I am thinking of selling to pay off 37k in debt, the debt causes me to struggle to make ends meet at present. Looking to future- proof ourselves a bit from potential recessions/ job losses now that finally have equity in property after 20 years. I am concerned with climate change,the apartment is near a river and may become part of flood area in future.
Tenants have been there less than 6mths and have been notified- now unresponsive to contact. After 6mths will be hard to ask tenants to leave, landlord rights more difficult now, and less flexibility to sell when I need to.
My original plans changing due to climate concerns. I had hoped to retire early and live in property in my retirement and divide house between my children as expect they will struggle to afford property in the future. However keeping the property allows investment to grow/ keep up with inflationary pressures, though really it has not valued up as much as I'd hoped since purchasing in 2002.Gone from 220k to 260k in 19 years). Capital Gains will eat away at profit too. Is it really worth selling?
Selling it enables me to breathe a sigh of relief and enjoy the present, invest money I pay towards debt to other investments that might be more lucrative/ more than make up for inflation.
Do I secure my finances for the present moment, or do I secure them for the future/ retirement?
Age: 46 (plan to retire at 57 from company but keep working part time for myself).
Annual gross income from employment or profession: 90K
Monthly take-home pay: 4k
Type of employment: Full time employee
In general are you:
spending more than I earn- automatically save into accounts for emergency fund (5k saved), yearly family holiday and family events (christmas/ kids bdays).
Rough estimate of value of family home: 450k
Amount outstanding on your family home mortgage: 220k
What interest rate are you paying? Tracker + 1% on most of it, 2.5% on 80k of it. Mortgage us 1,115 pm
Rough estimate of value of investment property: 260k
Amount purchased at (for capital gains tax reasons): 220k off the plans in 2002.
Amount outstanding on investment property mortgage:170k
What interest rate are you paying? Tracker +0.85% on most of it, 4.5% on 40k of it due to two top-ups to buy previous family home before divorce (bad idea!)
Mortgage is 1,250 pm
only 12 years mortgage left (Bank won't allow me to extend as tracker mortgage)
Other borrowings –
12k 0% credit card
18k car loan (credit union)
7k business loan
In process of Refinancing these into one loan at the moment with credit union
Savings and investments: 5k savings in credit union, held hostage with my loan.
Do you have a pension scheme? Yes 7% + employer match 8% + 5% AVC
Do you own any investment or other property? No
Ages of children: 9 and 12
Life insurance: Yes through work.
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