BTL or cash buy?

lwcus78

Hi,
Firstly apologies, I know I should have done my research first. I will do some tomorrow. Myself and DH have been talking of doing BTL for a few months now. We would like to do some kind of investment for our childrens future. Here are our details.
We're both 31 yrs old. We have one child.
Our house is valued £175k. Current mortgage £55k. His salary £27k, mine £20k doing 2 day weeks, could easily do more but enjoy being home with DS. Planning another little one maybe in next 2 yrs or so.
Savings £18k.
Seen house for £68k, needs about £10k work, rent pcm £450.

I have a few Q's.
What is best way forward? Do we remortgage our own home to raise capital or do we do BTL mortgage?
Would we have to pay tax on the rental income? Could we set interest from mortgage against it?
Would there be any benifits in putting house in our son's name?

I would be very grateful for any advice
Thanks:beer:

VIGILANT22

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