Pay off the mortgage or invest in a second property?

utb100

Myself and my partner are both 26 years old. We own a 4 bed detached house which we paid 325k for with a 110k deposit. We have a 5 year fixed rate mortgage paying £750 a month. Between us we earn 70k per year and save around 2k per month. We currently have 30k in savings.

Do we gradually pay off our mortgage (we can pay off up to 10% of our mortgage per year) or do we invest in a BTL?

I know it’s all about opinions but I’m just looking for some advice really. I’ve always wanted to start a property portfolio. Just an idea of the price of properties in our area - You can get a decent terraced house for between 70-90k and a 3 bed semi for 90k-120k+.

All advice welcome.

boomsmitty

Pay primary mortgage off first and then with no house payment, and if you carry on saving at that rate, in a few years you can pay cash for a BTL.

Check out Dave Ramsey's podcast.

Ojb

Pay off home in full before buy to let?

AnotherJoe

If one of you is a high rate taxpayer you should be maximising your pension contributions to get max high rate relief. That will be far more lucrative than overpaying or BTL.

Thrugelmir

utb100 wrote: »

We own a 4 bed detached house which we paid 325k for with a 110k deposit.

Was it a new build? If so is it still worth £325k.

Did you use HTB?

atush

I agree with no4.

Pensions is where you should look over BTL, and S&S isas too

dividendhero

BTL is nothing like the easy money it used to be, it's a major PIA these days and the rewards are pretty meager

utb100

Thrugelmir wrote: »

Was it a new build? If so is it still worth £325k.

Did you use HTB?

Yes it was a new build. We have not had it valued since moving in so not sure on the current value. They are selling for more on the next phase though.

We didn't use HTB.