Off Set Mortgage

getmore4less

parkinc wrote: »

I know that if I either saved or paid off that the calculations should be the same, however I was factoring in that I would continue to pay the same interest regardless of the actual balance.

still the same in both cases short by the same amount.

£210k over 10years adding £1kpm to the interest only payment.

rate, interest +1kpm, amount owing after 10, amount per month to clear in 10y, extra needed pm
0% £1000pm £90,000 £1750 £750
1% £1175pm £83,850 £1840 £665
2% £1350pm £77,270 £1932 £582
3% £1525pm £70,259 £2028 £503
4% £1700pm £62,750 £2126 £426

getmore4less

parkinc wrote: »

Selling one of the rental properties is an option but with capital gains there is a cost to that. We feel that the government keeps moving the goal posts for us, our pension plan was for the rental properties,but with the new tax laws coming in we may be hit by higher taxes, our income will be on the boundary of it costing more with the 40% tax rules for rental properties.

We had our planning set for me retiring at 60 and husband at 65 both at the same time, that changed to 64 for me and then finally to 66 for both of us, so the whole thing is really totally messed up.

It seems we are caught between the devil and the deep blue sea.

Have all your rentals still got massive debts as well?

you can turn over £86k+ before the reductions in tax relief kick in.

That can pull in £6k per month net should be enough to retire on

getmore4less

With a rental portfolio an essential part of the planning is the CGT exposure management and exit strategy.

if the 20% tax exposure on relief is causing issues that suggests yields may be too tight.

a restructure could release capital, improve margins and reduce the expenses exposure to reduced relief