5 Things to Consider when Paying Down Your (Buy to Let) Mortgage
1. It is confusing
HMRC seems to have lots of issues with it when calculating interest relief. It creates headaches if they investigate you.
2. It could be better invested
Based on our calculations someone who is 35 would be 3x better off by 65 if they used a LISA and Pension.
3. It locks the money away
The only way to get the money back is to release equity from your property which is often difficult.
4. Make the calculation
We have a handy spreadsheet to help you work out what is better or one of our guardians can help you.
5. Increased Inheritance Tax
In a pension the money would have 0% IHT in most cases. However, equity in a property will be taxed at 40% above £325k.
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