We own a rental property for which we have a mort of 130,000 interest only thru bank of Scotland. It's been rented for the past 4 years, thankfully, and it covers the repayments & insurance. The current tenant will be moving out in May & we'll have to do a few small jobs to try & rent it out again. My question is would there be any point in paying off the mortgage - or even a portion of it - as we would have the cash to do it, but it would take a massive chunk out of our savings. What would be the advantage/dis-advantage of doing this.
We haven't approached the lender yet (I did try ringing the other day but gave up after being on hold for 10 minutes), so don't know if we did pay off some of the loan would we be able to keep the interest only or would they want us to go to a re-payment mort.
We're just worried that if in the near future the Euro is "Kaput" our money would be worth nothing anyway, so would now be the time to pay off the house.
Hopefully, we'll be able to rent it out again as there is still a fairly strong rental market in the area & we're not charging over the odds - we're happy if the rent covers our cost. Any comments would be appreciated.
We haven't approached the lender yet (I did try ringing the other day but gave up after being on hold for 10 minutes), so don't know if we did pay off some of the loan would we be able to keep the interest only or would they want us to go to a re-payment mort.
We're just worried that if in the near future the Euro is "Kaput" our money would be worth nothing anyway, so would now be the time to pay off the house.
Hopefully, we'll be able to rent it out again as there is still a fairly strong rental market in the area & we're not charging over the odds - we're happy if the rent covers our cost. Any comments would be appreciated.