Paying of mortgage in full

CJN4

Hello,

I have just joined the forum & would be very grateful for some advice on what, on the surface, could be a very simple problem.

I have 2 mortgage products.

1. A current account offset mortgage for my own home. Home value around £240K. Remaining balance around 95K

2. A BTL mortgage on a small property. Current value around £130K with a remaining balance of 55K

My question is this:

The BTL mortgage is a base rate tracker due to expire in December 2010. I wondered if it may be sensible to use the equity in my main home to pay off the BTL mortgage in full. My current account mortgage would then increase to around £150K with a value of £240K & a LTV ratio of 65% or so.


I realise that I would no longer have tax relief on the interest on the BTL mortgage payments etc but I wondered if this was a financially sensible option or are there some really obvious things that I am missing?


Thank you very much for your time.

Chris