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Mortgage advice please

Hi.

We have a vacant rental property, currently unmortgaged, which we have been unable to sell.

My wife is training to become a counsellor/therapist and is going to use the property for holding her group sessions from Sept onwards.

We want to take out a mortgage of 75-80% LTV on the property and set the interest payments against the income generated by her counselling business. As the level of income is pretty much a guestimate, can anyone suggest the best way forward? Would a self cert BTL mortgage be the way to go? We need the cash for other purposes, such as loft conversion at our primary residence. Seems sensible to take out of equity at rental property and setting payments against income thereby reducing tax bill, rather than extend own mortgage. Wife is supply teacher with patchy employment record/provable income. I am a 'dabbler' with no provable income. Hence, hoping a "self cert - no proof required"
or BTL could fit the bill.


All thoughts welcome

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    I don't think a BTL would be the option as it does not look like you will be letting it out

    What are you raising the funds for?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • thaylock
    thaylock Posts: 234 Forumite
    I also own a property without a mortgage, I was hoping to mortgage it & set the interest payments against the rent from the property, an accountant told me once a mortgage has been paid off in full you are no longer allowed to do this. You may want to get advise from an accountant first. Lesson is never to pay off your mortgage completely.
  • Apart from a loft conversion on our pimary residence, cash is required to provide money for living exenses generally and worrking capital for my wife's business. Property was bought without a mortgage four years ago for £84K, current value £155K.
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