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!

changing my repayment btl to interest only

Good morning all,
I am new to this and just wanted your expert opinions please.

i have a btl repayment mortgage with mortgage express on a tracker rate currently 2.99% ad hasn't moved for circa 5 years or so paying £497 per month.
Total outstanding £70 k, property currently worth circa 125k, 15 years to run. rent is £550 per month before any management fees, income is actually £477.

I am considering remortgaging to an interest only mainly for tax purposes, i am aware that as the mortgage decreases the the interest only relief will disappear. There is good equity in the property and lookin around i can reduce my payment down to circa £130.
I can retire from the police in 6 years and will expect a lump sum of some £125 k.
Am i wiser to change to interest only and use some of the spare money to bolster monthly income bearing in mind i will have the means to pay off the balance without any problem.
thank you
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.4K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.4K Spending & Discounts
  • 245.4K Work, Benefits & Business
  • 601.2K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.