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Overpay or remortgage? Advice please...
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localboy
Posts: 59 Forumite
I have a btl on a fixed rate for 2 years which ends in Sept'18. The balance will be approx £50k owing with 9 years left on the term. I have £25k in savings and I want to get this mortgage paid off asap.
Would I be best to overpay at the end of the fixed term with my lump sum and then overpay each month? Or remortgage and keep my savings?
Any advice would be greatly appreciated. I just want to get it paid off asap.
Thanks in advance.
Would I be best to overpay at the end of the fixed term with my lump sum and then overpay each month? Or remortgage and keep my savings?
Any advice would be greatly appreciated. I just want to get it paid off asap.
Thanks in advance.
0
Comments
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Have you spoken to an accountant?
At the minute, it might still be more tax efficient to keep the savings in a savings account.I am a Mortgage AdviserYou 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 -
Have you spoken to an accountant?
At the minute, it might still be more tax efficient to keep the savings in a savings account.
I am employed full time and earning income from the rental property. My savings are in a low interest instant access ISA. The mortgage will go on to a variable rate at the end of September'18. I want to be able to live off the rental incomes as my sole earnings asap, as I am paying tax on both and only being able to offset the interest on the btl. I can only afford to do this once I am mortgage free. What would you advise?0 -
If you are only earning 1.4% from your cash ISA and paying alot more on the interest rate for your BTL once the fix ends then why not overpay and clear the mortgage asap.
You still need emergency savings to pay for a new roof or boiler/ kitchen.
No point having the Tax tail wagging the dog.
Words of wisdom from my accountant0 -
Remortgaging costs money in fees and legal costs.
What does the BTL loan revert to at the end of the fix ?0 -
The fees for a BTL mortgage can be high and not worth moving lenders if you only have a small mortgage say £50K.
Even less if you have a £30K mortgage !
PS how much interest will you pay on £50/30K ?0
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