Buy to let newbie. Mortgage query?

garrods

We currently have a dormant mortgage at nationwide, we paid off 5 years ago but left it open with £1. We are considering a buy to let and are thinking of borrowing £50000. on our existing mortgage and paying the rest cash.
1- can we claim tax relief on the interest even though the loan is against our home?
2- we have some free time, is it a hassle managing the property ourselves or do you recommend an agent?
3 any other advice?
Thanks Katie.

dimbo61

1 YES if you can show direct line Loan/Mortgage to BTL property
2 Save you 10% but can you do the Job?
3 Do you live close by ?
4 Do the figures stack up
5 I use a good local accountant ( Fee is tax deductible) from profit.
ALL your eggs in one basket comes to mind

Thrugelmir

Does you mortgage account come with a reserve or ability to withdraw overpayments?

garrods

Thank you,
It should be clear re the mortgage loan as we have never borrowed against it before.
We live very close to the property. Prices are fairly good around here, it is for sale foe offers around £85000, with an expected rental on £550 ppm. However we have never done this before so do not know what , if anything should be included in this price ( utilities, council tax etc) . More home work needed. This is a rentable ares near the local hospital. Thanks for your advice.

Thrugelmir

The issue for Nationwide may be the purpose of the funds when considering your application.

Leaving the mortgage open confers no benefits as such.

Yorkie1

garrods wrote: »

Thank you,
. However we have never done this before so do not know what , if anything should be included in this price ( utilities, council tax etc) . More home work needed. This is a rentable ares near the local hospital. Thanks for your advice.

You need to read this thread for new LLs:
http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

The tenants should be liable for all bills (unless it's an HMO in which case you may be liable for CT).