Lulabelle's MFW Diary

lulabelle1

DH was even thinking it might be an idea to just take back all of our op's from our house and then do some further borrowing on our own property and buying the b2l outright.... No tax relief, but then no hefty mortgage arrangement fees, higher int rate with it being b2l mortgage etc...

I see where he's coming from, but it would make it more difficult to fund another a year or 2 down the line....

HelenDaveKids

Gosh Lula, can't leave you for five minutes...

lulabelle1

I know, if its not bags, it houses....

gallygirl

lulabelle1 wrote: »

DH was even thinking it might be an idea to just take back all of our op's from our house and then do some further borrowing on our own property and buying the b2l outright.... No tax relief, but then no hefty mortgage arrangement fees, higher int rate with it being b2l mortgage etc...

I see where he's coming from, but it would make it more difficult to fund another a year or 2 down the line....

Ok, another option to confuse you. Say you can release 100k equity from your own house. As long as you can show you used that 100k to purchase a btl property you can offset the interest on the 100k. We do that on one of ours.

If you are both higher rate tax payers then no issue. If only one of you is you need to look at it carefully. I'm sure I've read you can assign all rent to one partner but can't find the ref at the mo - will post it when I find it.

Good luck

lulabelle1

gallygirl wrote: »

Ok, another option to confuse you. Say you can release 100k equity from your own house. As long as you can show you used that 100k to purchase a btl property you can offset the interest on the 100k. We do that on one of ours.

If you are both higher rate tax payers then no issue. If only one of you is you need to look at it carefully. I'm sure I've read you can assign all rent to one partner but can't find the ref at the mo - will post it when I find it.

Good luck

Oh blimey, this could actually be a viable option then as it would save on all of the fees. I have around 60k overpayments that I can take back which would be at 2.5% and then additional borrowing would run at around 3.5% - so better than borrowing the whole lot (well, 75%) on around 4.5% plus no fees........ But, would prevent us from moving ourselves for a while. Wow, decisions decisions.

How do you show it btw?

gallygirl

lulabelle1 wrote: »

Oh blimey, this could actually be a viable option then as it would save on all of the fees. I have around 60k overpayments that I can take back which would be at 2.5% and then additional borrowing would run at around 3.5% - so better than borrowing the whole lot (well, 75%) on around 4.5% plus no fees........ But, would prevent us from moving ourselves for a while. Wow, decisions decisions.

How do you show it btw?

It will only actually matter how you show it if you get selected for a tax review. When you do your tax return it will just be down as interest, along with other expenses. We remortgaged our own house to do, kept the correspondence and copies of bank statement showing money in & out and letter from building society confirming paid off.

I'd offer you a spreadsheet to keep track of costs & tax due but I don't actually have one. I anticipate how much tax we'll be paying and put that aside at the start of the year, then do a reconciliation at the end. I think cos I resent paying tax I don't want a spreadsheet keeping a running total . Am so ashamed to admit I have a spreadsheet deficit :rotfl:

lulabelle1

Thanks for all of this GG - it's really helpful and it's giving me lots to think about.....

lulabelle1

Accounts tidies, a few shuffles to make it all "work" until payday....

£7.50 received from Quidco and sent to the MOP pot along with a 5p account tidy.

4 sleeps until pay day.

unhappy_shopper

GG, thanks a lot for your insights into BTL.
Lately I have been posting on other threads exploring the feasibility of various options, but still haven't found time to find a letting agent for our old home - might go in for LTB to put towards another

lulabelle1 wrote: »

DH was even thinking it might be an idea to just take back all of our op's from our house and then do some further borrowing on our own property and buying the b2l outright.... No tax relief, but then no hefty mortgage arrangement fees, higher int rate with it being b2l mortgage etc...

LB, there are BTL mortgages available without the hefty arrangement fees. An easy way is to do whole-of-market mortgage deal search through this link. HTH.

lulabelle1

Thanks unhappy shopper.....

3 sleeps until payday!

47p account tidy to mop pot.

Really need to do big food shop but determined to wait until pay day.

Bought some party bags and things to put in party bags frm amazon for ds2s birthday party next weekend. Hopefully it all arrives in time.

DH has just left, he's away until tomorrow night, gone shooting! Boys are now playing at a neighbours so very quiet in the house.

Strange weather, sunny one min, raining the next.

Dinner for me is Thai chicken - leftovers from the other day. Not sure about the boys, will see what they fancy from the freezer once they get back from playing.

Might need to eat mine sooner than later as I skipped lunch today.