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Save For Deposit Or Pay Off Capital
PJGILL
Posts: 42 Forumite
Hello All,
I have three Buy to let properties that are all rented out and generating more income that expenditure at the moment. Due to the current house price fall they are losing some equity so my plan of selling one of them t help buy a house in medium term is on hold.
I am now considering saving (£1000pm) to help with a deposit rather than paying of capital on any of the mortgages. Is this a sensible idea?
I have three Buy to let properties that are all rented out and generating more income that expenditure at the moment. Due to the current house price fall they are losing some equity so my plan of selling one of them t help buy a house in medium term is on hold.
I am now considering saving (£1000pm) to help with a deposit rather than paying of capital on any of the mortgages. Is this a sensible idea?
Phil
0
Comments
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Won't Paying capital off the BTL mortgage increase your TAX liability.0
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you could Use any money you have to pay of your own mortgage, if you have one as the previous answer was correct, any profits would already have been taxed, so paying off your own will leave extra funds for you
It really depends on your plans, when you want to retire, how much cash you need, do you want more stock or more money?
The deposit idea is one I would have gone for, If I was looking 5-10 year term and had plenty to live on, but wanting more cash to spend now I would pay lumps off my personal mortage0
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