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reclaim your interest?
Grz.26
Posts: 317 Forumite
Hello.
I wonder if anyone can help me regarding what I heard a while back and if I understood it correctly.
My friend owns a portfolio of properties and I think I remember him saying that he rents them out, but his BTL mortgage on them is interest only and that he claims back the interest from the government. Is this right? Or have I missed something here?
I do remember him saying that he cant improve the property or gain anything from them.
Thank you.
Richard.
I wonder if anyone can help me regarding what I heard a while back and if I understood it correctly.
My friend owns a portfolio of properties and I think I remember him saying that he rents them out, but his BTL mortgage on them is interest only and that he claims back the interest from the government. Is this right? Or have I missed something here?
I do remember him saying that he cant improve the property or gain anything from them.
Thank you.
Richard.
0
Comments
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Hello.
I wonder if anyone can help me regarding what I heard a while back and if I understood it correctly.
My friend owns a portfolio of properties and I think I remember him saying that he rents them out, but his BTL mortgage on them is interest only and that he claims back the interest from the government. Is this right? Or have I missed something here?
Either you or he - or both of you - misunderstand, I'm afraid. The Government is not paying the interest back to him. His properties are a business and the interest is part of his overheads. All he's doing is claiming a deduction from the business income (rent) for the interest and his other overheads. This reduces the income down to a level of profit, on which he pays tax. So the best he is doing is getting some tax saving - but he has to pay the interest to the lender anyway.I do remember him saying that he cant improve the property or gain anything from them.
Sounds very odd
I wonder why not? Warning ..... I'm a peri-menopausal axe-wielding maniac
0 -
I think i misunderstood - caught conversation in passing. Thanks for reply though.0
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