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Best option please.
Cariad71
Posts: 263 Forumite
Hi everyone,
I'd appreciate some help please.
I live in a house which has a £140000 mortgage on it (valued at £260,000). Interest rate is 3.29%
I rent out my first house (no mortgage) for £650 a month.
Would I be better off paying a higher rate by getting a buy to let on the rented property, but getting more tax relief (interest on the mortgage payments) OR keep the mortgage on the house I'm living in but benefit from a lower mortgage rate (based on the principle that buy to let costs more than residential). Thanks in advance.
I'd appreciate some help please.
I live in a house which has a £140000 mortgage on it (valued at £260,000). Interest rate is 3.29%
I rent out my first house (no mortgage) for £650 a month.
Would I be better off paying a higher rate by getting a buy to let on the rented property, but getting more tax relief (interest on the mortgage payments) OR keep the mortgage on the house I'm living in but benefit from a lower mortgage rate (based on the principle that buy to let costs more than residential). Thanks in advance.
Starting balance £173,000 (Sept 2012) interest only so if we do nothing We will owe this at the end of the term😁😁
Balance as of Sept 2014 £165,803
Balance as of Feb 2015 £163,360
Balance end of July 2015 £159,050
Balance as of Jan 2017.... £138,033:j
Balance as of Sept 2014 £165,803
Balance as of Feb 2015 £163,360
Balance end of July 2015 £159,050
Balance as of Jan 2017.... £138,033:j
0
Comments
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I'd do option 2. You can get some really good deals on 60% LTV. And the tax relief has either recently gone or is on it's way out.0
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Do the maths!
What will the switch cost?
What will the tax saving be?
What will the new mortgage payments be?0 -
You need a spreadsheet! Don't forget to factor in any fees associated with mortgaging.
Also 3.29% on your current mortgage sounds expensive. Are you tied in for a certain period? If not, it may be worth looking at remortgaging that also.0
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