Best choice/option for pay down BTL

John1967BC

Hello , new on here but been reading boards for a while.


I have a buy to let property with 113K mortgage and its worth about £165000. LTV is around 70%.


Mortgage deal on BTL finish's in November but am in the fortunate position of having paid off my main residence, value £400K.


I earn about £65K per year, 47 years old. I want to pay off the BTL before I retire.


I am thinking about re-mortgaging on my own place, and paying a lump off the buy to let mortgage, say £33k.I would hopefully get this at a low rate of around 1.18% fixed for 2 years.


At this rate the rental of around £620 a month will cover the interest only on the BTL mortgage (80K) and the £33K on the re-mortgage, with around £200 spare


I don't want to go any heavier on the re-mortgage, I have only just paid off my mortgage on my main property, and have been without any new stuff for a while. 15 year old car, no foreign holidays etc., so want to have some money to do these things.


I have a final salary pension scheme so this will be a supplement to this, BTL is in my wife's name who does not earn, so use her tax allowance.


Could overpay the £33K a little then repeat when this paid down, so when I retire at 60 its finished.


Not happy to go much more than £33K on my place, that would be my ceiling.


So take chunks out of the BTL interest only using equity/re-mortgage every 4 or 5 years.


Is this a sound approach?? Thanks for your help.