additional borrowing - legitimate reasons

monkeymortgage

hi to all,

I am considering increasing my BTL mortgage in order to reduce the balance on my residential mortgage.....

when i approach my mortgage provider will they want to know what i intend to do with the extra money?

Any ideas i the above will get past the mortgae company?

many thanks

_Andy_

monkeymortgage wrote: »

hi to all,

I am considering increasing my BTL mortgage in order to reduce the balance on my residential mortgage.....

when i approach my mortgage provider will they want to know what i intend to do with the extra money?

Any ideas i the above will get past the mortgae company?

many thanks

Yes they will ask

Surprised though that this would work, surely the rate on the BTL will be higher than the resi?

monkeymortgage

hi Andy,

thanks for your reply,

my rationale for considering this was that i can claim tax relief on the BTL mortgage interest so overall it may workout to save a little bit (not as much as i had initially hopes after playing with the sums.....)

my worry is that the lender won't let me borrow extra for this specific reason

marathonic

Funds raised must be for the purpose of the BTL to be allowed for tax deductions.

For example, you can raise money on your residential mortgage to make improvements to a BTL property and use the interest on that portion of your residential mortgage as a deduction on your BTL tax return.

It doesn't work the other way.

monkeymortgage

thanks for clearing that up marathonic