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Overpay BTL or Residential Mortgage
simpleguy_blr
Posts: 154 Forumite
Hi,
Looking for some advice.
I have two mortgaged properties, one has been rented out and converted to a BTL repayment mortgage, The BTL repayment mortgage was on two year fixed term at 2.99% reverting to 4.5% which is coming to an end soon. The outstanding amount on this BTL is 170K.
My other mortgage is for the house we currently live in is on 5 year fixed term at 2.59% reverting to 4% taken last year, the outstanding amount on this is 300K, this allows repaying up to 10% of the principle amount per year without any penalty.
I have about 20K in our savings account which I want to overpay one of the mortgage, (I have savings to cover my monthly expenses for 6 months.)
I will soon be looking to remortgage the BTL, does it make sense to reduce the BTL mortgage by adding this 20K?
Should I be focusing on overpaying the BTL or primary mortgage whenever I have some extra money?
My partner and myself both are self employeed, the BTL property was our primary house and has been rented out now since two years, it is in a nice location and has a good rental potential.
Many Thanks
Looking for some advice.
I have two mortgaged properties, one has been rented out and converted to a BTL repayment mortgage, The BTL repayment mortgage was on two year fixed term at 2.99% reverting to 4.5% which is coming to an end soon. The outstanding amount on this BTL is 170K.
My other mortgage is for the house we currently live in is on 5 year fixed term at 2.59% reverting to 4% taken last year, the outstanding amount on this is 300K, this allows repaying up to 10% of the principle amount per year without any penalty.
I have about 20K in our savings account which I want to overpay one of the mortgage, (I have savings to cover my monthly expenses for 6 months.)
I will soon be looking to remortgage the BTL, does it make sense to reduce the BTL mortgage by adding this 20K?
Should I be focusing on overpaying the BTL or primary mortgage whenever I have some extra money?
My partner and myself both are self employeed, the BTL property was our primary house and has been rented out now since two years, it is in a nice location and has a good rental potential.
Many Thanks
0
Comments
-
Questions for your accountant really.
It depends largely on your tax situation and long term intentions.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Tax situation : Both are on normal tax rates. Long term intentions are to if possible own the BTL property.0
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