Use money to Pay off mortgage or for deposit for a new house for son?

planetmsn

We have about £60k outstanding on our mortgage and after a sale of land overseas, we have that amount in the bank!

We have two options:

1.) Pay off the mortgage and save around £750 a month!

2.) Use the money to buy a 2 bed flat for £100k (at 60% LTV), where my son will be living with his friend and paying the mortgage. The rent will be around £600 with monthly mortgage being £500, so the rent will basically pay off the mortgage.

We can't decide which one would be the best thing to do. Could someone help us decide please. Thanks.

getmore4less

who will be owning the second house you or son?

the tax/cost situation is different

duchy

Depends how old you are, if you have savings, decent pension provision, if you intend to live forever in your current home or have plans to retire elsewhere or downsize later on. Your tax status and general health are worth adding to the mix too.

One size doesn't fit all and on the info you've given there is no answer.....which probably means you need to sit down and look at the options more closely before deciding.

POPPYOSCAR

Why do you have two threads running at the same time about this?