We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Paying of mortgage in full
CJN4
Posts: 31 Forumite
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
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
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards