taking out residential mortgage to pay of BTL Mortgage

silvercar

UKSBD wrote: »

Does that mean that if you had a main residence with no mortgage on it you could remortgage it, use the money raised to buy a BTL and still claim the tax on the interest element back?

Yes.

It is the purpose of the loan that counts, not where (or if) it is secured.

UKSBD

silvercar wrote: »

Yes.

It is the purpose of the loan that counts, not where (or if) it is secured.

Thanks,


so moving my Mortgage is a Win - Win then.


If I get a £60k mortgage on my main residence, use that to pay off the mortgage on the house I am letting out, I can get about a 1.5% better interest rate but still get back the tax on the interest element of it

PKaurK

It shouldn't be an issue. You need to declare the existing mortgage and state it will be redeemed upon completion with the additional borrowing. There is usually an additional information box on the application, use it to fully explain the circumstances.