Is it better to overpay on mortgage or save cash for deposit on a BTL

harshitguptaiitr

Once you purchase your first home, is it better to overpay your mortgage or save money for deposit towards and investment property and get Buy-To-Let Mortgage.

pjcox2005

They're two very different things, people typically overpay as they want security that the debt has gone and they fully own the house despite it not necessarily being the best return on investment.


A deposit for BTL or any other investment (e.g. stock and shares ISA) is for people who are willing to take on higher risk in return for making a greater return on investment (although equally this could be a loss).


If you are the second option then I'd suggest saving either in high interest accounts, peer 2 peer or shares (depending on timeframe) would be more appropriate as easier to access should you be in a position to buy a BTL if that's the route you'd prefer to go down, and are aware of landlord responsibilities and associated risks.

dimbo61

Why not look at Offset mortgages and build up savings in the offset account each month

Thrugelmir

Your home isn't taxable income.

Edi81

What other pension arrangements you have is also a consideration.

Why get a BTL property? Its not as easy money as it used to be!

AnotherJoe

Why BTL? Why not ask if it would be better to save more into your pension, or invest in an ISA, or save in a high interest regular savings account or something else ? Why just those two alternatives (either of which is likely a poor choice)