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Buy to let or remortgaging
polzovatel
Posts: 72 Forumite
Hi,
We could not sell our house for years so now we bought a new one
and rent out this one.
We need a mortgage and want to secure it against the old property.
Do we have to take the 'Buy to let' mortgage or can just re-mortgage the old house (there is no mortgage on it) with the normal mortgage?
Thanks
We could not sell our house for years so now we bought a new one
and rent out this one.
We need a mortgage and want to secure it against the old property.
Do we have to take the 'Buy to let' mortgage or can just re-mortgage the old house (there is no mortgage on it) with the normal mortgage?
Thanks
0
Comments
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Have you completed the purchase of the new property already?
Do you need to raise equity from your existing property to fund the purchase?0 -
Yes, I already bought the new house and initially took the mortgage for the new house but was told that I could claim the mortgage interest off the rental taxes which is only fair as I rent this house out only because I could not sell it.0
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The higher deposit requirements, interest rates and fees for a BTL mortgage will likely make the tax benefit marginal at best.
And don't forget to factor in any Early Repayment Charge for ceasing the new house's mortgage.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
The one you live in should be a residential mortgage.
The one you let out should be a BTL mortgage.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You can get a residential mortgage on the house you live in or a buy to let on the one you rent out.
Anything else would be at the discrtion of the lender.
In either case if the mortgage was to buy the rental property then you can claim the interest against rent whichever property it is on.0 -
If I still live in the property and want to remortgage it for the property improvements and then rent it out - which mortgage should I take?0
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polzovatel wrote: »Yes, I already bought the new house and initially took the mortgage for the new house but was told that I could claim the mortgage interest off the rental taxes which is only fair as I rent this house out only because I could not sell it.
Chances are it won't save you money, too late for a residential mortgage if allready let, BTL will be expensiver to set up.
You also need to take advice to make sure HMRC will be happy.
If still living there and you pretend to get a do it up mortgage on the cheap then ask for concent to let imediately that could get you trouble if the lender is not happy.0
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