We have a rental property, interest only mort. 130,000 with Bank of Scotland Ire, which has been rented for the past 5 years, but will be for rent again Aug/Sept this year. My question is: we have the cash to pay it off & wonder - reading the headlines about savings perhaps being "attacked" by the government - if it would be a good idea to pay off the mortgage at this stage? I do think that we'll be able to rent it again come Aug/Sept which would more than likely cover the mort/ins etc. - only just mind you. The houses are selling for around 130/140,000 at the moment.
Also, would it be worth contacting the bank to see if they would give us a % reduction on the monies owed if we paid it off in total?
I was hoping that it would produce a bit of a nest-egg for me in the future as I was a homemaker for years & missed out on pension/savings for my "golden years". I don't know about selling either - as long as we can rent it should we just tough it out & hope that things improve over the next 10 years or so - it's so confusing!!
What would be people's views & opinions? They would be much appreciated.
Also, would it be worth contacting the bank to see if they would give us a % reduction on the monies owed if we paid it off in total?
I was hoping that it would produce a bit of a nest-egg for me in the future as I was a homemaker for years & missed out on pension/savings for my "golden years". I don't know about selling either - as long as we can rent it should we just tough it out & hope that things improve over the next 10 years or so - it's so confusing!!
What would be people's views & opinions? They would be much appreciated.