Paying down mortgages - Good Thing ?

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    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 ?

    #2
    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.

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      #3
      I don't think age is such a problem with BTL mortgages (unlike resi)
      e.g

      https://www.landlordtoday.co.uk/brea...-btl-landlords
      From Wednesday 18th April, there will be no maximum age at application nor at redemption for experienced landlords

      edit: cross posted with Loanarranger

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        #4
        No problems Boletus , thanks for the supportive information to the poster.

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          #5
          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.

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            #6
            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

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