Pay off mortgage or BTL

[SlipTheJab]

Depends how much spare cash you've got doesn't it. Sheesh. Some people.

Apologies, that was a bit harsh, I guess so long as the rent covers the mortgage it's all good

[northernladuk]

Apologies, that was a bit harsh, I guess so long as the rent covers the mortgage it's all good

You are yanking my chain now aren't you?

[unixman]

Am overpaying by 50% at the mo, so only 5 years left as it stands if I pay no more. Regarding house for kids. I'm thinking they get in once I've popped my cloggs

Regarding your overpayments... sweet.

Passing 3 houses on to your children might trigger inheritance tax. We don't know what the thresholds will be when you die (in 100 years or so) but the value of 3 or even 2 houses might exceed.

[unixman]

How many BTLers are actually in this thread, and would the recommend it?

[SlipTheJab]

You are yanking my chain now aren't you?

Jeez, try and be nice and still get grief!

[FatLazyContractor]

How many BTLers are actually in this thread, and would the recommend it?

Recommend what?

[SlipTheJab]

Regarding your overpayments... sweet.

Passing 3 houses on to your children might trigger inheritance tax. We don't know what the thresholds will be when you die (in 100 years or so) but the value of 3 or even 2 houses might exceed.

True, but the paltry savings rate's make this the only safe investment at the mo.

[alphadog]

I'd say BTL, so long as:

• You will be able to get good tenants (decent location and condition)
• Say 80pc of the rent will cover the mortgage payments
• You are comfortable work-wise for the next few years

[SandyD]

I think some if not most are forgetting Osborne's effing budget is going to throw most landlords into serious debts... mortgage interest no longer would be offset against rental income, plus they took away the 10% wear and tear allowance, therefore any rental income will be considered income no matter what the loss you are making, if you are intending to take out the 43K out of your ltd, then any income you make from BTL will push you into higher tax pay...

I will suffer personally from this, at the moment my BTL rental income pays for the mortgage and rental expenses, I make little profit from it, however, once the mortgage interest is no longer offset against the rental income, I will have a huge income tax bill from next year.

[SandyD]

So as a contractor + landlord, you are hit multiple times by the budget, Div tax hit, Travel and expenses hit, no mortgage interest offest on BTL ====> huge income without taking expenses into considerations