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which mortgage to overpay?

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  • Typhoon2000
    Typhoon2000 Posts: 1,184 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I dont tink you will get a better deal on the BTL with a new lender (or the same lender) than the one you have now anytime in the near future regardless of the LTV ratio. Intresrt on the BTL is also deducatable against tax. So overpaying that instead of your residential mortgage will mean you will be paying more tax each year as the the interest charged on the BTL comes down every year due to the over payments.
    Given also that the interest on your residential mortgage is the higher of the two (and its an offset mortgage so you can get it back easily should you need to), this is really a no brainer - over pay the residential mortgage.
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