Buy to let mortage

Pearls66 · 20 September 2019 at 5:01AM

I have a buy to let mortage I have a good deal as I do shop around but Should I start paying some of the mortage off when the penalty is up as I need an income from it long term or may have to sell because now the government has decided we cannot have any tax relief on the expenses so I get less income from 2020. Or just keep the mortage I have on it as is

foxy-stoat · 20 September 2019 at 9:02AM

Sell it and get your money out - let someone else buy the property to live in.

[Deleted User] · 20 September 2019 at 9:37AM

Pearls66 wrote: »

I have a buy to let mortage I have a good deal as I do shop around but Should I start paying some of the mortage off when the penalty is up as I need an income from it long term or may have to sell because now the government has decided we cannot have any tax relief on the expenses so I get less income from 2020. Or just keep the mortage I have on it as is

Depends on the goal and its more of a financial advice question than a mortgage question. Out of my remit but a few questions

Are you still in work and supporting yourself financially?
What do you do with the rent at the moment?
Whats the long term goal with this property? Do you plan to take any capital growth and do some pension planning or is this your pension?

I have lots of clients who buy cheapish property with good rents and pay off the loan while they are of working age. This means they get to retirement and have a mortgage free BTL.
I also have lots of clients who buy in 'better' areas and have the rent just pay the interest and sell the property prior to retirement and take the capital growth to invest elsewhere.

Depends on your goal

Retired_Mortgage_Adviser · 20 September 2019 at 9:44AM

It's impossible to say as there is very little relevant information in your post.

House value
outstanding mortgage
interest rate
basic/higher/additional rate taxpayer?
monthly rent
monthly expenses

The changes have been phased in over the last couple of years, so you should have already seen an impact on your after tax income from the rental.

Pearls66 wrote: »

I have a buy to let mortage I have a good deal as I do shop around but Should I start paying some of the mortage off when the penalty is up as I need an income from it long term or may have to sell because now the government has decided we cannot have any tax relief on the expenses so I get less income from 2020. Or just keep the mortage I have on it as is

Buy to let mortage

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free