Should we pay off our buy to let mortgae?

R_J_Taylor

Hello,

We have a buy to let mortgage on a property that is let, we pay 4.85% interest. We are about to receive a sum of redundancy money that could pay a substantial portion of the mortgage off.

This would however perhaps mean that when filling out a self assessment return monthly nett rental income would increase and hence tax would be payable on it?

Current rental income is £1k per month tax offset in part by mortgage interest of £550.

My wife will not be in work but will have used her persoanl allowance to offset her lump sum.

Are we better investing the money till next tax year and looking at again if she decides to stay out of work?

Thanks

RJT