ISA's vs Mortgage Overpayments

sarah7944

I look to where possible to max out my ISA's annually. However with the new tax laws on rental income and BTL properties I am unsure whether I should be redirectly the funds I would normally put in to a ISA toward overpaying my BTL mortgages. Which is more beneficial?

Alexland

If the only reason you were keeping high mortgages on the BTL properties was for the income tax relief then it's certainly worth reconsidering your options.

Would paying off more mortgage get you access to better interest rates on the balances? Are the mortgage rates higher than the return on your ISA? Would you still have a big enough emergency pot for repairs or if your main income or rental income dried up for whatever reason? Is using your ISA allowance each tax year important to your long term plans for storing wealth after you have disposed of properties?

Alex