Paying down mortgages - Good Thing ?

  • Filter
  • Time
  • Show
Clear All
new posts

    Paying down mortgages - Good Thing ?

    I have several interest only mortgages due to end in the next few years and my age will go against me remortgaging when they do, so I have been using spare income to pay down as much as I can.
    Obviously this results in the loss of some tax relief but it still seems to be the most prudent strategy.
    Anyone see a better alternative ?

    Section20z , Age is no longer an obstacle in securing long term mortgages , whilst certain lenders require the mortgage to be repaid by age 70/75 there are indeed lenders who will provide mortgages up to 85/90 with an applicant being 70 years of age on application.

    Clearly using surplus monies to reduce the mortgage is a positive feature but and I am not an accountant but the increased net value of the portfolio from reducing the loans could oblige your estate to pay more money over and above the threshold than you might feel is fair.

    Before paying off further sums from spare money I would suggest you speak with either an accountant or indeed solicitor to establish what prudent steps you need to take in estate mitigation , also don't give up on having a mortgage on your properties.


      I don't think age is such a problem with BTL mortgages (unlike resi)
      From Wednesday 18th April, there will be no maximum age at application nor at redemption for experienced landlords

      edit: cross posted with Loanarranger


        No problems Boletus , thanks for the supportive information to the poster.


          You could just keep the money in the bank where it is accessible if needed and then when remortgage time comes around you can pay it in to the property if required by the lender to increase the equity or you may be surprised when it comes to remortgage time and find that you can release a lot of this money that you’ve paying down.


            Many thanks for the input, estate planning is something I hadn't really considered.
            It goes against the grain to have large quantities of cash in the bank but I might opt for an half/half policy instead. Thanks again


            Latest Activity


            • Reply to BTL - LTD Company Money
              by Gordon999
              The Ltd company is a separate tax entity . If the company buys a property , the company pay tax on its annual rental income minus the annual expenses. These allowable expenses can include letting agent, property maintenance and mortgage loan interest. The annual rental income less allowable expenses...
              09-07-2020, 19:14 PM
            • BTL - LTD Company Money
              by VPatel2707
              Hi There,

              Please can someone help me with a query?

              I am looking to purchase a BTL property through a LTD Company - but I am slightly confused how the money element works.

              I’ve read online that the Director can pay themselves a salary and as long as that’s...
              07-07-2020, 06:57 AM
            • Reply to BTL - LTD Company Money
              by ash72
              You should talk with an accountant, as it depends upon a number of questions, are you intending on buying more properties? Are you going to finance the purchase through a mortgage or from cash?...
              09-07-2020, 10:08 AM
            • Mortgage News
              by loanarranger
              The following article has appeared in one of the Mortgage Trade journals reporting on views expressed by the Association of Mortgage Intermediaries an influential trade body within the mortgage industry.

              "Mortgage rates are likely to rise in the first quarter of 2016 as lenders look...
              23-12-2015, 19:43 PM
            • Reply to Mortgage News
              by loanarranger
              Virgin Money gets tough on Lending Criteria

              Tomorrow, Thursday 9 July, we will update our lending policy for customers who have County Court Judgements (CCJs) or who have defaulted on an item of credit.

              We will no longer accept cases where a CCJ or defaulted account remains...
              09-07-2020, 04:16 AM
            • My unexpected tale of selling my BTL
              by feederking
              Some months ago I decided to sell my Manchester BTL terraced after 8 years owning.Tenants left 1 week before lockdown in March a week later it happened & thought well thats it for selling.
              Anyway spend the last 3 months a few hours weekly decorating,new flooring,carpets etc.It went up for...
              03-07-2020, 22:03 PM
            • Reply to My unexpected tale of selling my BTL
              by boletus
              I'm sure there were, a small minority of areas still haven't recovered.
              But on average, it was 2014....
              08-07-2020, 11:11 AM
            • Reply to My unexpected tale of selling my BTL
              by jpkeates
              There were a load of newspaper articles in 2018 which announced that prices had returned to pre-crash levels....
              08-07-2020, 08:49 AM
            • Reply to My unexpected tale of selling my BTL
              by buzzard1994
              The government "strategy", if it can be called that, is indeed to import millionaires but after the incompetence they have shown in the last few months will they want to come here. There will be other pandemics, there will be climate change - New Zealand is looking pretty good right now..
              08-07-2020, 05:11 AM