Buy To Let/eventual retirement property - advice?

[underwhelmist]

We've cleared our mortgage and are starting to think about planning for retirement. In particular we're thinking of buying a house in a nearby town which we would eventually retire to (in maybe 10-15 years time), and which we'd let out in the meantime. It's a pleasant location near to good schools and the house we've identified would also be suitable for a young family. We have a 25% deposit, but we'd have to save further to cover other costs like stamp duty.

What advice would the PH collective have to offer? As we're intending to eventually live in the property, should we go for a repayment rather than interest-only mortgage? I'm vaguely aware there have been tax changes relating to BTL in recent years, what's the effect of these? I'm not averse to seeking professional advice but I don't know who to ask, any pointers?

[rog007]

Wouldn’t want to live near schools in retirement!

Screaming kids and 4x4s everywhere!

[Welshbeef]

It doesn’t need to be repayment as when you decide to retire you could either sell your current house and clear the debt or put a mortgage into your current house when you retire clearing the other houses mortgage.

As for what you should do comes down to affordability for the next 15 years? If you can afford it and it doesn’t impact your lifestyle then it’s a good idea. However you might make better returns from investing that elsewhere (pension S&S etc).

You can of course change your mind during those 15 years so maybe an interest only now which will allow over payments if you wish

[alfaman]

Pension investment may give better returns. Tax deductible. And more flexible. Easy to manage.