Inflation has risen again after falling in last month’s reading – it is at the highest level in 10 months
Read MoreInflation rises to 3% – what it means for your mortgage, pension and more
Tag: pension
How buy-to-let landlords selling up can recoup capital gains tax AND boost their pension in one move
With the Autumn Budget looming large in the minds of landlords, some have decided to sell up in order to avoid higher costs now and a possible capital gains tax raid in future.
Read MoreShould I use my pension lump sum to pay off the mortgage on my buy-to-let? DAVID HOLLINGWORTH replies
I have a second home, a small two-bed flat, which I own with a £93,000 repayment mortgage fixed at 2.69 per cent until October 2025.
The mortgage is set to be paid off in October 2035, and my main home is already paid off. Currently, my daughter lives in the second home rent-free.
Once she moves out later this year, I need to consider whether to change the mortgage to buy-to-let and rent the property out.
Early rental valuations indicate that the rent will cover the mortgage.
I have recently retired, although I am not due to get my state pension for another seven years.
Should I use the tax-free pot from my private pension to pay off the mortgage and use the rental amount as monthly income? What should I take into consideration?
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