Apologies if this isn't the correct forum for this.

I currently have three properties - property 1 has no mortgage and is worth about £70,000 (technically it's worth more, but I am giving around £50k of it to my mum); property 2 is rented out with a mortgage of £89,000 (property is worth around £130,000); and property 3 is the home my partner and I live in, which is worth £245,000 and has a mortgage of £190,000.

I'm planning to sell property 1 this year and will have around £70k from that plus around £20k from an inheritance.

My initial thoughts are to pay off property 2 so that there's no mortgage. I'd prefer not to be renting it out at all and be able to sell it, but the property market is stagnant and there are already three or four similar properties on the market in the street that have been on for months. Certainly I don't want to be renting it out for more than a couple of years if at all possible. Paying it off would mean there's about £535 rental income a month before tax (I'm self employed and all income, business or rental, is declared to HMRC). This income would cover about 75% of the mortgage on property 3. When I do sell it, I could then put the £130k into property 3 and leave us with a small mortgage that we should be able to pay off within 10 years.

Alternatively, I could ignore property 2 - the rental income pays for the repayment mortgage and ongoing maintenance - and put the £90k directly into property 3 - the home we live in.

Both property 2 and property 3 have recently been mortgaged/remortgaged (we just bought property 3) onto three-year deals with pretty similar interest rates, so we have early repayment charges to consider. For property 2, this would be around £2500. For property 3, it would be more. We can pay 10% a year without penalty. The third option, therefore, would be to do something else with the bulk of the money for three years until we can put it into property 2 or property 3 with no charges, but I'm not sure what that something else would be!

Does anyone have any thoughts? I suspect I might need to speak to a financial advisor.