mbarne36 Posted September 6, 2010 Report Share Posted September 6, 2010 Hi I'm a newbie to this, and think I have spotted a property that i want to buy-to-rent. I have a question (please)... I have a flexible tracker mortgage on my main home, and I am fortunate enough to have one heck of a lot of positive equity on it. My mortgage will allow me to extend my current loan by an amount that will allow me to buy a flat in the local area - to rent out. So in real terms, I will have increased the mortgage on my main home, and bought a flat with cash. This seems appealing because i can take advantage of the fact that my current mortgage deal is 0.89%. Pretty good, and much better than I could get if I took out a buy-to-let mortgage. So the question is this... effectively I am a cash buyer for the flat, but I have extended a mortgage on another property (my main home) to fund it.... so can i still offset those interest payments against my income when preparing my statements for the taxman. I'm sure i'm not the first to want to do this right? thanks in advance... Link to comment Share on other sites More sharing options...
Chestnut Posted September 7, 2010 Report Share Posted September 7, 2010 As I read this, the mortgage interest payments you refer to are an expense on your main home and lifestyle, not a direct expense on your rented flat. Would you offset your other main home expenses (insurance, redecorations, etc, etc) against your flat rental income? Why not ask HMRC? Link to comment Share on other sites More sharing options...
Melboy Posted September 7, 2010 Report Share Posted September 7, 2010 HMRC are helpful on matters like this and it is always best to run any idea past them or a tax advisor. You will have to register your flat as income anyway with HMRC. Mel Link to comment Share on other sites More sharing options...
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