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gf has moved in with me and is renting hers out, and is also retiring.
her fixed rate mortgage expires August 14 and at this point in time the early repayment clause is about the same as the interest left to pay.
She can pay another 10% off free of charge in Jan.
She can pay the whole lot off at fixed rate expiry (*Aug 14)
As someone who slaved to get rid of his mortgage asap my advice used to be pay as much as you can asap, however given that she can claim the mortgage interest against tax I'm not so sure this holds quite as much.
Any suggestions on the best plan of action ?
In that situation I think I'd be tempted to keep the mortgage - remember that the loan provider needs to be informed and may add fees/more interest, or you may even need to swap to a BTL mortgage, so that might influence things more.
You might even be able to borrow more money against the rental property, which could be useful.
You used to be able to offset mortgage interest against income from rental which could mean keeping the mortgage made sense... Worth a look round http://www.rla.org.uk and http://www.landlords.org.uk
Btl should only be .5-1% extra on the mortgage