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Use BTL to reduce main residence mortgage
optimist_2
Posts: 64 Forumite
The mortgage term on my main residence is not due to finish until I enter my retirement. I can overpay and finish paying when I am 65. On the other hand, I have a BTL property which I can sell to produce a large lump sum overpayment which will enable me to pay off my main residence mortgage by the time I am 60.
I don't really want to sell the BTL property, but I am aware that if house prices drop, I could be left with paying off my property into retirement.
Alternatively, I know that a lot of BTL investors take the equity out of their properties to pay off their main residence. This is an option, as I only need part of the equity in the BTL property. The BTL mortgage is on interest only, so this will mean extra interest, but this will be offset by the reduction in the repayments on my main residence, while enabling me to keep my investment.
I suppose I should also should take into account the value of the BTL property should house prices continue to rise - are there any calculators that will do this?
Many thanks
I don't really want to sell the BTL property, but I am aware that if house prices drop, I could be left with paying off my property into retirement.
Alternatively, I know that a lot of BTL investors take the equity out of their properties to pay off their main residence. This is an option, as I only need part of the equity in the BTL property. The BTL mortgage is on interest only, so this will mean extra interest, but this will be offset by the reduction in the repayments on my main residence, while enabling me to keep my investment.
I suppose I should also should take into account the value of the BTL property should house prices continue to rise - are there any calculators that will do this?
Many thanks
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