reducing my mortgage

[steve06]

I have a mortgage off 100k on a standard variable rate of 3.8. I have savings of 70k, my house is worth 360k should I
1. pay off 50k on the remainder of my mortgage.
2. leave it as it is at 100k and avail of the goverment tax relief on the 100k.
or
3 Look at investing in another property.

any advice would be greatly appreciated.

Tks guys.

 

[ClubMan]

2. leave it as it is at 100k and avail of the goverment tax relief on the 100k.

What tax relief are you referring to? If you mean owner occupier mortgage interest relief then remember that this only applies to a maximum annual interest bill of €4K per mortgage holder and is only at standard rate (20%0. So it's worth a maximum of €66.67 per mortgage holder per month. In the greater scheme of things I personally don't think that staying in debt mainly or solely to avail of this relief is a good idea. Especially since some of these savings are effectively eroded by the need to pay for mortgage protection life assurance as long as the mortgage is not cleared.

3 Look at investing in another property.

Why property in particular and not any other possible investment that might be open to you? Why concentrate on a single asset class and (presumably) geographic region?