Buy now or in 5 years?

amnblog

No quite what it says in your post Dimbo.

anselld

dimbo61 wrote: »

If the poster takes out a BTL mortgage against the property he owns mortgage free can he not offset the Interest against the rental income ?

There is no point incurring extra cost just to save 20% of that cost in tax.

That would only be worth doing if the OP could invest the capital released in something returning more than the mortgage cost.

dimbo61

I have corrected my post.
Time to speak to the right people if you are starting a business, Mortgage Broker, Accountant, IFA.
Does the poster want or need a bigger home NOW or in 5 years

Smi1er

dimbo61 wrote: »

I have corrected my post.

You have changed it although it's still incorrect.

Time to speak to the right people if you are starting a business, Mortgage Broker, Accountant, IFA.

Or speak to people who know about it.


You can claim interest on a loan, how much this loan can be for will depend on the value of the property when it becomes a rental. The purpose of the loan must also be linked to the funding of the rental property.

dimbo61

Most BTL loans are 75/80% LTV at best so he might be able to raise £50K on the mortgage free property.
He is saving £1250 a month but it will take 2 years to save a £30K deposit unless he uses the equity he has in his existing property.
With a £50K deposit he should get a good rate on the mortgage for the £180K property he wants to buy.
Or he could sell his current home and put down a bigger deposit on the next property and forget about being a Landlord

bestyman

Thanks for all the replies, a lot to think about.


I would rather move ASAP, but nothing wrong with living here another 5 years or so.


Because the value of the property is so low (70k) yet I know for sure will easily let at £500- £550 PCM, it seemed more sense to let than sell?


Our next move is to have a chat to the bank manager to see whats on offer.


Thanks again.