Is interest only for me

[sparky71]

Hi there,
need to know if intersest only mortage is for me.

own house 360k approx + mortage of 170k
planning permission to build seperate house worth approx 550k when complete
want to keep both houses + rent one
would need 500k to pay off mortage and build new one
i am paye worker on 42% tax

 

[ClubMan]

Your query is not that clear to me.

need to know if intersest only mortage is for me.

On which mortgage - PPR or investment?

want to keep both houses + rent one

Rent which one?

would need 500k to pay off mortage and build new one

Pay off which mortgage - PPR?

i am paye worker on 42% tax

41% surely? Your income tax rate is not really that relevant as far as I can see - other than to your potential rental income tax liabilities.

 

[sparky71]

would like to new house as pension
what is ppr

 

[ClubMan]

would like to new house as pension

Can't understand this either.

what is ppr

PPR = Principal Private Residence - i.e. your home as opposed to any other (implicitly investment) property that you own.

I suspect that you might be well served getting independent, professional advice on the investment and tax issues involved here.