I presume in either scenario you are keeping your existing house?
On the basis buy to let mortgages tend to have a higher interest rate attached to them, I would think you need a tax benefit to make this the better option.
From a wealth building perspective, interest only is surely only of benefit if the extra cash in your pocket is generating a greater return than the interest rate you’re paying out.
I’m somewhat risk averse so assuming all other factors equal, I’d borrow on a repayment basis for the new place.
Posted By: SimonOTBC on June 27th 2021 at 18:22:25
Message Thread
- Mortgage/Financial advice (General Chat) - jonnym6, Jun 27, 17:29:02
- You'll have to pay income tax (General Chat) - RadgeCanary, Jun 27, 18:59:54
- I’m no expert, but there are a lot of things to consider (General Chat) - Under soil heating, Jun 27, 18:30:35
- Great response - thanks. (General Chat) - jonnym6, Jun 27, 18:41:00
- No worries mate. Good luck with whatever you decide. (n/m) (General Chat) - Under soil heating, Jun 27, 19:19:13
- Great response - thanks. (General Chat) - jonnym6, Jun 27, 18:41:00
- I presume in either scenario you are keeping your existing house? (General Chat) - SimonOTBC, Jun 27, 18:22:25
- I'm easily confused but (General Chat) - Jester, Jun 27, 18:16:20
- Rather personal question but are you a higher rate tax payer? (General Chat) - JoeyDeacon, Jun 27, 17:57:53
- I was advised to ditch/sell my rental property when the rules changed for this very reason (General Chat) - gameon, Jun 27, 18:31:13
- I know someone who has done exactly that (General Chat) - jamesward, Jun 27, 17:42:56
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