SMF - Just Installed!

pay off lump sum or keep in savings account

Started by Sisteron21, May 01, 2021, 11:32:49 AM

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first time post alert!!
I have a BTL with 10 years left on £80K  interest only mortgage. Rate 2.1% -
I have an ISA worth £20K just about to renew onto rubbish interest rate (0.5%)
I am not clear on how to calculate if I am best to keep the £80K mortgage so as to benefit from the new tax relief  OR if I should use the £20K to reduce the debt.
Can anyone explain it in relatively simple terms, please?


Hi have similar issue,  I will be doing some calculations on the amount of interest that I would pay on the buy to let vs interest gained on the savings, the other side of the coin is would you use this money to purchase more property, my 10c and I'm going to run it past my accountant so will let you know also what they suggest