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Gam2015
Posts: 171 Forumite
Current situation living with parents but not in a rush to move out, i have around 55k in various accounts and i have a buy to let mortgage that matures 31st of this of month i currently owe 33k on my BTL mortgage, would it be wise to just pay the mortgage off in full and then just keep saving for my own property in the future. I am also not bothered about a second buy to let ones enough for me lol.
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I would use your money as a deposit on your own place.
If you paid that mortgage off you would struggle to take out another BTL mortgage without owning a place of your own. Very few lenders will give a BTL mortgage to non home owners.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Hi but it wasn’t a problem taking out the mortgage 2 years ago when i also lived with parents. Cheers0
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The problem with paying off your BTL mortgage is that you won't be able to offset any mortgage interest against the rental income, ultimately meaning you could pay more income tax. That said, with the size of your mortgage, I don't expect the interest will be a significant amount.
Keeping your money back for a house deposit means that you'll have more options when it comes to buying. Not only will you likely get a better deal (with a lower LTV), you will also have more money to buy a more expensive property, if needed.I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, 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
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