Cant get BTL mortgage.

MisterB1959

Craig_Donny wrote: »

Thanks for the replys.

To remortgage my mums house I now see the problem with the years she could have one for.

My other option is to remortgage my own property. To get uoto 85% LTV I would be able to release 36500. Reason I didnt want to do this was because I wanted to use minimun deposits on BTL properties. However after sleeping on it I think this may be the better option as I can easily afford it. As I would then own that house. At a later date would I be able to mortgage the rental property to gain funds for another deposit?

Do you guys think this way is a good idea?

Thanks

I am sure that interest tax relief on the amount you released for the deposit would be available if you did ! best to consult an accountant /tax adviser first though !

kingstreet

Provided the funds are borrowed wholly for the purchase or investment in the letting business, the interest will be an allowable expense regardless of which property it is secured on.

Seek professional advice as a matter of course though if you aren't an experienced landlord.

G_M

It would not be against the rules for your mother to do this - she is borrowing on a residential mortgage against her property - which is where she lives. But asking her lender will answer that question!

How long has her current mortgage got left to run? She'd probably need to add the amount to her existing mortgage for whatever period is left, so not a new 25 year term

Keep a clear record of the money as you should be able to offset the interst against rental income though as the loan to you is from your mum, not the mortgage lender (who is lending to mum), you should document her loan. Get accountancy advice re this.

dave88uk

Hi Craig,

Sounds exactly like my scenario! I've done exactly what you've said - no problems.

If your mum wants/is willing to remortgage the house - then she can do exactly what she wants with that money (dependent on her mortgage provider's t&c's of course).

If she suddenly needs the money back, it's possible you could take a secured loan out against the property when it's in your possession, but this is costlier than a mortgage typically.

Argghhh

can you not get a "car loan" for 20k?