buy buy to let or pay into the mortgage?

[Whatsthefuture]

I'm receiving a lump sum of around 100K in April and I'm not sure whether I should put it into paying off the mortgage or to invest in a buy to let property?I have about 200K left to pay my mortgage off. Any suggestions would be extremely helpful.

[biryani]

I suppose it depends on the property market where you live. In some parts of the country you could buy something outright for that, in which case it may be worthwhile as you'd be making a profit straight away. Otherwise, I'd be very careful. You don't say how much your current property is worth or when your term ends. Also, interest rates will probably go up soon, in which case it may be more sensible to invest it in another way.

Talk to a financial adviser before committing yourself. He (or she) will discuss your options in detail and determine your attitude to risk.

[Whatsthefuture]

Thanks biryani. I've spoken to a financial advisor but they are reluctant to actually advise me. Instead they've given me various options. I've taken on the mortgage on a repayment basis for 18 years. The mortgage I'm paying monthly is hefty £1700.00 a month. The property is worth 1.2 million.

[biryani]

That seems a big repayment. Do you want to reduce it? If so, and your lender is happy, perhaps you could use your 100k to overpay. Or, as you have plenty of equity in your property, perhaps you could mortgage and bring the payment down.

Have you thought about an offset account? It works by consolidating savings and mortgage into one, thus bringing down your monthly repayment. Virgin used to do one, and Woolwich/ Barclays. Look for one online.

I've just come to the end of my offset mortgage term and I'm gutted as I can't get another as I'm not working!

[Whatsthefuture]

Not working is my problem too. I'm relying on maintenance payouts through my divorce.
I've got the mortgage through HSBC. They offered the best deal for a non working divorcee with 4 children.
I'll look into the offset account you mentioned. But since I'm not working like you, it might also be a problem. But worth looking into.
I've a lot to learn regarding finances. I was kept in the dark whilst I was married. I'll probably be on this site a lot asking all sorts of inane questions.
Have a lovely Christmas and thank you for your advice.

[biryani]

It's a bit of a minefield at the moment. Until the crash banks were lending willy nilly and then overreacted when the crash came. Now no-one seems to want to lend. You'd think that you'd be a safe bet with all that equity even if you're not working. And you have an income, albeit from maintenance.

Hope you decide what to do.