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Mortgage free on 1 house or smaller mortgages on both

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
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sst1234sst1234 Forumite
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edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
Hi

I’m looking for some advice on how to use some savings that I have painstakingly built up for our next move. There has been some very frugal living to prepare for our next move. The savings, around £43000, would give us 67% LTV including equity from our current house. The other option is to use these savings to pay off a buy to let property which has an 8.5 year mortgage left to run. This would mean we only have 75% LTV when we move next year.

I’m weighing up the pros and cons and a little confused about the best course of action. Having a mortgage free rental property will save me around £98 in interest to begin with, reducing with time over the next 9 years. On the other hand, having a larger mortgage on a residential property feels like an enormous commitment.

Thanks in advance.

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  • beanieloubeanielou Forumite
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    I have no idea at all but bumping for you :)
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