Too Soon To MEW for BTL ?

IronWolf

I think the OP upgraded to a 3 bed place so she could have two lodgers to sleep with.

I think it will be a bit harder to get tenants in a BTL sleep with you though

thequant

Funnily enough I have been looking into this again today.


My current situation is


£25k cash in the bank
£45k cash in the business account (after accounting for liabilities)
£180k equity in a £450k House.


What's the best way for me to raise the deposit ?


I have a target property in mind, am going to take baby steps in my first foray in BTL. So going for a cheap 1 bedder for £170k.


I'm looking at going for 75% LTV, may be 60% if the figures stack up.


problem is all of cash is tied up somehow.


1) obviously the house equity is tied up and I am only a few months into my mortgage.
2) the personal cash is in ISA's I don't want to touch
3) the business cash is drawable but it wouldn't be tax efficient as I would go over my personal allowance and will have to start paying income tax .


Any ideas ?

IronWolf

How did you get a mortgage if your income isn't even over the personal allowance?

And surely you take cash in a business as dividends, not salary, giving you a lot more tax free before you hit HRT limit.

thequant

IronWolf wrote: »

How did you get a mortgage if your income isn't even over the personal allowance?

And surely you take cash in a business as dividends, not salary, giving you a lot more tax free before you hit HRT limit.

salary upto basic rate allowance (thanks to Osbournes employer NI give away)


rest in dividends upto HRT threshold.


Anything over that is tax inefficient for me, anything below I need to keep for day to day living costs.


The mortgage, a few mainstream lenders lend to people in my situation.