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Pay off residential mortgage or buy a new let to buy property?

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
2 replies 414 views
DarkShadowDarkShadow Forumite
180 Posts
edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
Hi all,
Hope you can shed some advice on this.
We have been a bit fortunate to be in a situation where we can pay off our current residential property. We can then buy a new property for rental income.

What I would like to know

Is it better to buy a new property and pay as much deposit as possible?
OR
Pay off current house and buy a new property and pay more interest there? (Then you get some sort of tax releif on rental income?)

Regards,
Bank accounts
Santander : 17 year relationship, 0 problems to date.

Replies

  • Unicorn_cottageUnicorn_cottage Forumite
    878 Posts
    Fourth Anniversary 500 Posts Name Dropper Photogenic
    ✭✭✭
    How much would the early redemption fee be? Do you have a percentage you can pay off every year without paying a penalty?
    "Everything comes to him who hustles while he waits" Thomas Edison
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
  • Outstanding is 200k
    I can pay 10% without penalty and remaining at 2%penalty.

    The penalty fee can be recovered by not paying interest for a year I guess?
    Bank accounts
    Santander : 17 year relationship, 0 problems to date.
This discussion has been closed.
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