We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Offsetting mortgage interest against rental income of your own home
hithrog
Posts: 5 Forumite
Hi,
I have a single property, my main residence, but I have to move for work so am planning to let it out.
My mortgage company have told me they can give me a "Consent to Let" for £100, but no additional interest.
Does this constitute me changing the mortgage to a Buy-To-Let mortgage and if not, will I still be able to offset the interest charged on my mortgage against the rental income?
Many thanks everyone ...
I have a single property, my main residence, but I have to move for work so am planning to let it out.
My mortgage company have told me they can give me a "Consent to Let" for £100, but no additional interest.
Does this constitute me changing the mortgage to a Buy-To-Let mortgage and if not, will I still be able to offset the interest charged on my mortgage against the rental income?
Many thanks everyone ...
0
Comments
-
consent ot let is permission to let, its not a change of mortgage but it doesn't need to be.
You can offset the interest charged against rental income whether or not you have the lenders permission.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Hi All,
We are interested in buying a small property near where we live to rent out, as a long term investment. However the loans that are available for buy to let are not very attractive. We have equity in our own house and could take a larger mortgage on our own home and buy the rental property outright.
Would we still be able to offset the mortgage interest against the rental income??
Any ideas ??
MJ0 -
Mortgage interest, upto the value of the property when first let, is an allowable expense against rental income. It doesn't matter where, or indeed if, it is secured.
So the short answer is, yes you can consider the mortgage interest as an expense.
Depending on your circumstances you may find lenders not so willing to lend for property purchasing, but the theory would work.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Thanks very much, as you can see although I have been reading this website for years, I do not participate very much. I appreciate your input and this will encourage me to participate more.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.2K Work, Benefits & Business
- 600.9K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards