From: Derek ^ 
Newsgroups: uk.finance
Subject: Re: paying off mortgage
Date: Mon, 15 Aug 2005 17:37:49 +0100

On 15 Aug 2005 07:00:13 -0700, "Steve F"  wrote:

>Currently my wife and i have £60,000 mortgage (interest + endownment)
>on a house worth approx £160,000
>
>Looking at buying a new house (with extra £40,000 of mortgage).
>
>Two options suggested are:
>1) make extra £40,000 a repayment mortgage paid off in 20 yrs
>2) just pay interest part of £40,000. In 20 years when morgage is
>repayable downsize.
>
>What are the pros and cons of (2)?
>

A layman's view. 

The population is ageing, round here smaller houses are at a premium,
especially 2 bed bungalows suitable for retirement. Downsizing may not
provide the yield you need especially if during revaluation(s)  the
Council Tax is increased dis-proportionately on larger properties.

DG