Should I Pay down btl mortgages now tax relief limited?

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    Should I Pay down btl mortgages now tax relief limited?

    I have 4 buy to let’s bringing in an income of £2890 pcm less £539 interest payments. I have also started work again so will have another income stream of approx £20-£25k after tax. I am considering paying down the mortgages on 3 of the properties but am also conscious of creeping towards to higher tax band. Am very confused about the whole thing and whether making less profit vs making more and paying more tax. Any views?! Happy to give more detail if that helps. Also have £20k savings - should I pay down a mortgage with it or invest it?! Thanks in advance

    #2
    Do you own your own home and is it mortgaged?
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      jpkeates is indeed correct in his question, before making any capital payments from the BtL's , your primary aim should be to use available capital to reduce any mortgage on your primary residence particularly as there is no tax benefit in the residential loan. If indeed there is no mortgage then yes I would move to reduce the level of indebtedness noting that even if any of the properties become unencumbered you could always , subject to criteria prevailing, raise new monies by a remortgage.

      Comment


        #4
        surely this depends on many things, over and above :

        1. Will you need to raise capital again in the near future? debt .. while section 24 is bad, obtaining debt can be costly, if no plan to get any, then pay it off.

        2. Is the debt cheap? Cheaper than what your savings are earning? some people have very cheap loans and therefor are actually making money saving their hard earned in ISAs, Bonds, other

        3. I could go on ..

        cheers, Les

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