I have a new build home (House 1) – value €350k, mortgage €180k svr 3.8% 25 years (full term) left.
I have former home rented out (House 2) - value €300k, mortgage €340k svr 3.8% 21 years remaining.
Do you think I would be better to overpay home mortgage or rented house?
Overpaying House 1 would save me more over the term but maybe it would be better to clear the negative equity on the house 2 in case I needed to sell. On the other hand I am getting rental tax relief on 75% of interest of House 2. This would reduce if the balance reduces (reduction would probably be negligible).
What are your thoughts?
I have former home rented out (House 2) - value €300k, mortgage €340k svr 3.8% 21 years remaining.
Do you think I would be better to overpay home mortgage or rented house?
Overpaying House 1 would save me more over the term but maybe it would be better to clear the negative equity on the house 2 in case I needed to sell. On the other hand I am getting rental tax relief on 75% of interest of House 2. This would reduce if the balance reduces (reduction would probably be negligible).
What are your thoughts?