Please help me sort out my finances

GJCaesar100

problem solved, thanks all

Pixie5740

How are you calculating the £80 hit on Property 2? Are you actually making a loss or is it just cash flow?

How far away are you from having (at least) 25% equity in Property 2 as that's what you'll need for a BTL. Will you actually make any money from letting this property out if/when you get a BTL mortgage? What kind of yield are you looking at and could you get a better return elsewhere? Do you have consent-to-let at the moment, if so how long does that last for?

Personally, I would sell Property 2 if it's not making you any money and clear the mortgage and secured loan.

andyfromotley

post a statement of affairs on here, (SOA) people will then be able to have a good look and make suggestions.

Pixie5740

Here's the link to the SOA.

http://www.stoozing.com/calculator/soa.php

Letting out the property without CTL is more than naughty. Are you sure you can get a BTL mortgage with 80% LTV?

Is your £480 mortgage payment interest only or repayment and are you declaring the rental income to hmrc?

Pixie5740

Only the interest portion of your mortgage is tax deductible, that's why I asked if you had an interest only or repayment mortgage. You need to be sure you are actually making a loss or you could be evading tax which is not very MSE. Even if it turns out you really are making a loss you should declare it to HMRC so you can offset it against future profits.

The extra money you have should be thrown at property 2 if you refuse to sell it so that you can try and get a BTL mortgage and stop putting your tenants at risk.