what to do with the rent

[windsorjen]

hi again, long time no hear, havent got around to renting out yet, moved out of my property (moved in with my partner) decorated lounge then got electrians in for elec checks guess what NEED A FULL ELECTRICAL RE-WIRE! anyway that should all be done today/tomorrow. question for you - I at the moment obviously pay my mortgage, and i was going to save all my rent in one account til the end of the tax year, let the tax man have his cut, and the rest put as a one off payment on the mortgage each year. OR should i pay my mortgage each month as normal, make an extra payment each month from my rent, minus say £50. which would go towards mr taxman in the other bank account. OR for the first 6 - months could i let the rental pay the mortgage, because i could do with paying some bills off )credit card etc) just to get me in credit and sorted out financially, then when all of my debt paid off, use my wages as above to pay off the mortgage asap, what do you think???

jenny

[F-Prop]

Hi Jenny!

I've never heard of a mortgage company accepting annual payments before! I'd be interested to hear who you use!

I don't quite understand your post, I think you are talking about making overpayments to reduce the mortgage which sounds like to have a repayment mostgage. I actually have all mine on interest only as I will be selling them one day so I'm not interested in re-paying capital. The mortgage company insist on the rent being (usually) around 125% of the mortgage so there's enough spare captial to pay the taxman and repairs etc.

I also get my tax returns done nice and early, then when my accountant tells me the dreaded figure, I transfer this into a high interest account and wait until the deadline to pay. It's usually earnt me enough interest in that time buy dinner with my girlfriend for putting up with me for another year!!!

Trevor.