Which mortgage to clear

D

Dan1

Registered User
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2
Hello Folks,

Will be receiving a redundancy package worth 100k(minus tax?).

I have 2 mortgages, first one, my home, approx 9 years left to pay 1000 monthly, 100k in total

the other a buy to let on interest only on 200k- 900 a month. Rental received 550 a month.

Both mortgages are variable rate non tractor.

Can you recommend which one you might pay off?
My own simply thinking was pay of the fist one and ask for a split mortgage on the buy to let until I find new employment.

Many thanks,
Dan
 
Could not give any answer on this given lack of information on your financial circumstances. Would it not make more sense to hold on to these monies until you do get another job?
 
The simplest logic would usually be to pay off your loans with the highest interest rate first. Are both loans at the same rate?

You would need to evaluate your tax situation as reducing the buy to let mortgage may expose you to an increased tax bill by reducing your deductions.
 
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