over pay on investment mortgage??

F

frunzy

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We currently have an investment mortgage of around €700 with 14 years remaining on it & the rental income is around 30% more than this. Is there any advantage for us in upping the monthly repayments as we can afford to or am I right in thinking that by paying this off quicker would mean we would have a higher tax bill when the mortgage is finished presuming we are still renting it out ie they calculate tax based on rental income minus mortgage interest. Sorry for rambling.
Thanks
 
You get full tax relief on the interest paid on your investment mortgage, so it reduces the real rate of interest by 46%.

If you have other borrowings e.g. a mortgage on your home or a car loan, you should pay them off first, as they do not attract such good tax relief.

Brendan
 
Thanks Brendan do you mean that we could use the surplus each month to 'up' our own mortgage repayments? I wasn't sure if thats what you meant and am I right in thinking theres no advantage in overpaying or 'upping' the monthly repayments on an investment mortgage?
Thanks
 

I thought that you only get TRS on your primary residance ?
 
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