Overpay if planning to rent?

rjenk74

Hi all,

Both myself and my partner have our own houses with mortgages, and if things carry on as they are we will hopefully buy a bigger house and move in together, (needs to be bigger for our kids from previous relationships), but we would like to keep one of our houses as a rental investment, most likely mine.

Now I have been toying with the idea of overpaying my mortgage for some time, however I am thinking that as I would possibly rent it, then would I be better investing my planned overpayment elsewhere, because if I do rent, I will have a bigger debt to offset against any rental income, therefore pay less tax on the rental income whilst my overpayment money is (hopefully) earning money elsewhere?

Is this thought process correct?

Regards
Rich

mrs_motivated

Hi rjenk74,

Just a suggestion , but you might beta better response on the house buying, renting selling forum. There are lots of landlords on there will will be able to advise you.