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    • harshitguptaiitr
    • By harshitguptaiitr 10th Oct 17, 4:10 PM
    • 89Posts
    • 14Thanks
    harshitguptaiitr
    Is it better to overpay on mortgage or save cash for deposit on a BTL
    • #1
    • 10th Oct 17, 4:10 PM
    Is it better to overpay on mortgage or save cash for deposit on a BTL 10th Oct 17 at 4:10 PM
    Once you purchase your first home, is it better to overpay your mortgage or save money for deposit towards and investment property and get Buy-To-Let Mortgage.
Page 1
    • pjcox2005
    • By pjcox2005 10th Oct 17, 4:20 PM
    • 480 Posts
    • 528 Thanks
    pjcox2005
    • #2
    • 10th Oct 17, 4:20 PM
    • #2
    • 10th Oct 17, 4:20 PM
    They're two very different things, people typically overpay as they want security that the debt has gone and they fully own the house despite it not necessarily being the best return on investment.


    A deposit for BTL or any other investment (e.g. stock and shares ISA) is for people who are willing to take on higher risk in return for making a greater return on investment (although equally this could be a loss).


    If you are the second option then I'd suggest saving either in high interest accounts, peer 2 peer or shares (depending on timeframe) would be more appropriate as easier to access should you be in a position to buy a BTL if that's the route you'd prefer to go down, and are aware of landlord responsibilities and associated risks.
    • dimbo61
    • By dimbo61 10th Oct 17, 5:52 PM
    • 9,593 Posts
    • 5,184 Thanks
    dimbo61
    • #3
    • 10th Oct 17, 5:52 PM
    • #3
    • 10th Oct 17, 5:52 PM
    Why not look at Offset mortgages and build up savings in the offset account each month
    • Thrugelmir
    • By Thrugelmir 10th Oct 17, 6:37 PM
    • 56,255 Posts
    • 49,621 Thanks
    Thrugelmir
    • #4
    • 10th Oct 17, 6:37 PM
    • #4
    • 10th Oct 17, 6:37 PM
    Your home isn't taxable income.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • Edi81
    • By Edi81 10th Oct 17, 7:36 PM
    • 329 Posts
    • 203 Thanks
    Edi81
    • #5
    • 10th Oct 17, 7:36 PM
    • #5
    • 10th Oct 17, 7:36 PM
    What other pension arrangements you have is also a consideration.

    Why get a BTL property? Its not as easy money as it used to be!
    • AnotherJoe
    • By AnotherJoe 10th Oct 17, 8:36 PM
    • 7,676 Posts
    • 8,290 Thanks
    AnotherJoe
    • #6
    • 10th Oct 17, 8:36 PM
    • #6
    • 10th Oct 17, 8:36 PM
    Why BTL? Why not ask if it would be better to save more into your pension, or invest in an ISA, or save in a high interest regular savings account or something else ? Why just those two alternatives (either of which is likely a poor choice)
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