Is it better extend IO loan period or to keep overpaying smaller loan on family home?

[Kenbo]

We have two mortgages with UB, one on our family home at 77k with 14 years left, and an IO one on an investment property of 200k 25 years left.

Both late forties with two young children.

Question is it better extend IO loan period, due to change to repayment in Feb '08, or to keep overpaying smaller loan on family home?

We want to be mortgage free asap, and let investment property pay the larger mortgage.

Both spouses in secure jobs.

Any advise please?

 

[GeneralZod]

Re: Mortgage advice

Question is it better extend IO loan period,due to change to repayment in Feb '08,or to keep overpaying smaller loan on family home?

Does the IO loan revert to a standard repayment loan in Feb 2008?

In general it's better to overpay the mortgage on your PPR first than the one on the investment property. The interest costs on the investment can be set against the rental income to lower your income tax liability.

 

[ClubMan]

Re: Mortgage advice



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