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BTL mortgage or remortgage existing house

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Comments

  • inkie
    inkie Posts: 2,609 Forumite
    Mortgage-free Glee!
    edited 11 February 2017 at 7:24PM
    I think that there may be another option and that is to go for an ordinary residential mortgage (it wouldn't be a second mortgage for us as we already own our own property outright).

    http://www.moneywise.co.uk/home-mortgage/mortgages/second-mortgage-worthwhile-investment]
  • anselld
    anselld Posts: 8,746 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    inkie wrote: »
    I think that there may be another option and that is to go for an ordinary residential mortgage (it wouldn't be a second mortgage for us as we already own our own property outright).

    http://www.moneywise.co.uk/home-mortgage/mortgages/second-mortgage-worthwhile-investment

    Seems that this might be a more flexible option rather than the BTL option.

    Significantly less flexible than mortgaging your own residence and paying cash.

    It is unclear if those offering such a second mortgage would consider you when you don't have a "first" mortgage.

    It is unclear if the second mortgage would be tax deductible since HMRC would argue you have not commenced a letting business.

    You appear to be disallowed from having a written tenancy agreement. Letting to family is potentially bad enough without being disallowed from doing it properly!

    Seems a bad idea all round when you already have the luxury of a straightforward solution.
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