Advice regarding a Lump sum

[sheffo]

Hi, I currently own along with my partner 2 properties, one which is an investment property and a new build which is our PPR. Our mortgage on the new build is approx. €250k over 30 years with BOI which is fixed for 3 years. The mortgage on the investment property is approx. €150k variable and has 18 years left on a 25 year mortgage. We tried selling the investment property and had sale aggreed on a few occasions over the last year but all fell through due to banks not lending to the potential buyers. This is not the end of the world though as we have been able to rent the property. However with rents dropping in the area the rent currently needs to be topped up by €300 per month to pay the mortgage. Both myself and my partner are in permanent jobs currently. We have approx. €50k in savings currently with RABO.My question is do people think I should pay off a lump sum from the investment property mortgage to reduce the mortgage? (unstability of the euro a worry regarding my savings) Note.It is not possible to pay a lump sum off my PPR mortgage due to it being fixed currently. Many thanks in advance for any advice

 

[Brendan Burgess]

Please edit your post to follow the format of the Money Makeover section or else post in another forum

Brendan

 

[RMCF]

Not an answer to your original question sheffo, but if you are renting one property, don't forget about having to make a tax return, so not only will you have to add €300 monthly to cover the rental propertys mortgage, but will have to pay tax on the rental income too.