Remortgaging advise, how to restructure multiple mortgages?

Mrs_Bumble

observingthedebate wrote: »

But of course we keep records/accounts of everything... :money:

:rotfl:You say of course but plenty don't! so better to state the obvious

nrsql

I am in a similar position except had flexible mortgage paid off on main residence.
I've recently arranged a fix rate offset mortgage on my home with first direct for as much as they would give me. Think it's about 4.5% at the moment but you get 6 months to complete (or pull out).
I'm planning to offset that completely and then when it becomes economical pay off the mortgages from the rental properties from this. Can still offset rent against the interest just have to be careful with the accounting.
Would still have the choice of mortgaging the rental properties if it seemed better.

observingthedebate

Thanks to all who contributed! Great food for thought.

I have one more point to raise. I have worked out that if we were to estinguish mortgage on flat 1 in Feb by a combination of Equity Withdrawal ans savings (say 60k on main residence, 50k on Flat 2, plus using 60k of savings) we would actually be 800quid a month better off and would own a mortgage free property (a sort of base camp should the proverbial hit the fan at some point!)

Only drawback I can think of is that the mortgage-free flat would not have IR offset for tax purposes so would cost more to maintain than at present.

Two questions to the experts:
1. Do you think it makes financial sense to withdraw debt in current market? (I kind of know the answer to this)
2. More importantly, how do you think my lenders would react if I was to ask a MEW on loans they are getting 1.19% and 1.15% respectively? Would they laugh and tell me to go away?

getmore4less

you won't get new funds at those rates.

If you get the finance right you can still offset interest even if you pay off the mortgage on flat 1.

nrsql

If you pay off the mortgage on the flat using a mortgage on your main residence you can still offset the interest. The mortgage doesn't have to be secured by the property just to cover funds used to buy it.
Just have to be careful to account seperately - and I would take advice about it.

See my previous post.