Hi dingdong
Am I right in saying that the mortgage on your investment property is interest only for the life of the loan?
If so, I presume it's bank of Scotland.
You have an asset worth €525,000
You have a loan of €430,000
Your net asset is €95,000
You are getting rent after interest of €1,200 per month or €14,000 per year.
Assume around €6,000 of costs and taxes , this still leaves you with a net return of €8,000 per month on your investment of €95,000 - say 8%.
If you sell the property and pay off your home loan, you will save €95,000 @ 4.5% or €4,500 per year.
So you are better off by around €3,500 keeping the house as an investment.
We don't allow speculation about house prices on askaboutmoney, but from an income point of view, this is a good investment.
There is a small, but real chance, that Bank of Scotland will offer you a deal to sell the house and pay off the mortgage. Maybe not now, but they might do so at some time in the future.
In fact, you should approach them now, as long as you don't mind being refused.