Is interest only for me

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

Your query is not that clear to me.

sparky71 said:

need to know if intersest only mortage is for me.

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On which mortgage - PPR or investment?

want to keep both houses + rent one

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Rent which one?

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

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Pay off which mortgage - PPR?

i am paye worker on 42% tax

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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.

would like to new house as pension
what is ppr

sparky71 said:

would like to new house as pension

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Can't understand this either.

what is ppr

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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.