That's correct, other properties will be let on a long term basis.
The question is which is more efficient for a low tax rate payer
Repayment - pay tax on rental less interest part of mortgage and allowable costs but gain from paying down the loan and therefore on retirement have minimal outstanding mortgage but a property that is rented out to provide retirement income against:
Interest only where less tax is paid because allowable costs are higher but retirement income is less due to the capital loan not being paid off.
I think for me as a higher rate tax payer I would take an interest only or I would be paying too much tax on any income/capital repayment.
What do you think? Hope that is clear
Thanks for this, it has been a great help. Actually it confirms my sentiments that a repayment mortgage if possible makes sense.
As the rent would not cover the repayments in my own case then an interest only or possibly combination of the two might be more appropriate but I can worry about that in a year when mine is up for remortgaging.
Thanks for your help.