90k savings should i pay off current mortgage

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the following is my situation,i live in accomodation which is owned by my employer it is rent free part of my over all package,my own house is rented out valued at 230k getting 750 per month rent with 90k of a mortgage owed 15 years to go.i put a deposit on another house last summer this will be ready soon it costs 195k and have been approved for 180k by my bank.i have plans to build a house on a site i have inherited and move out of my employers house in the next 2 years.i have 90k savings ,got from my ssia and partners ssia and 50k from hard work.
i am totally confused as to whats best to do,my bank tell me if i payed off my 90k mortgage they would give us the full build cost of our new house as we have a free site should i do this or put the money directly into the new house and not pay off the mortgage.
i was thinking of paying interest only on the house i bought last summer and selling it in a couple of months i bought it off plans and might make 20k on the purchase price,any advice would be much appreciated
i earn 39000 euro my partner 25000 euro
 
It sounds like your rental is performing well so why not try to hang onto it.

It would be better to have as much as possible of your mortgage debts on the rented property. You don't have to pay income tax on the portion of rental income used for interest payments on the rental property.

If you sell the rental property soon the above doesn't apply.
 
i have no intention of selling the property with the 90k mortgage just paying off the mortgage sorry if i wasnt clear thanks for your opinion
 
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