I’m wondering if I should sell my current property, or try to keep it to bring in rental income
Q I bought my flat with a mortgage about six years ago, scraping my way in as a first-time buyer just before any of the government’s help-to-buy schemes were available. I chose fairly low repayments and a long mortgage term, reflective of my financial circumstances at the time. Last year, I secured an amazing job with a much higher salary and it has changed my life. I’ve paid off all my other debts – apart from my student loan and mortgage – and now have savings and investments. My mortgage is a five-year fixed rate with an interest rate of 1.54% and 23 years left of the mortgage term.
I have calculated that between overpayments and reducing my mortgage term, on my current salary, I could be mortgage-free in the next five to seven years. My thinking is to reduce the balance while I am still in the fixed rate-period, and then just pay off the rest using my cash savings (since they are earning very little interest) when it moves to the standard variable rate (SVR).