Husband wants to remortgage out home to buy another property.

jackie_w

AnotherJoe wrote: »

Is that because he's done the sums showing the benefits of a lower interest rate vs a higher BTL rate that he can offset against income. Or just "because" ?

These are all just sums he has done in his head for the moment. He has said he will look into it and speak to as many people as he can, ie brokers, accountants etc. He said the people he has spoken to (other landlords) have told him to remortgage our home rather than a BTL as it will be cheaper.

After all our current bills are paid we currently have £2100 left every month no other debt apart from car finance and current mortgage and he is wanting to "put that money to good use" as he says.

TrickyDicky101

AnotherJoe wrote: »

Is that because he's done the sums showing the benefits of a lower interest rate vs a higher BTL rate that he can offset against income. Or just "because" ?

He can offset the additional residential mortgage interest suffered to finance the purchase of the BTL in any case. So assuming the residential rate is lower (very likely) it makes excellent financial sense to do so.


I considered doing something similar (using equity from my home) but I decided against it for the reasons ACG mentioned. My ultra-conservative attitude to risk when it comes to my own home makes me want to pay the mortgage down more than anything - even though I know I may be able to achieve a higher return elsewhere.