Mortgage/tax/rental - confused!!!

wills72

Hi

Wonder if anyone can help - I'll try and make it as short as possible!

My husband and I own a house and a commercial unit which we rent out. Both were bought a while ago and there is no mortgage on either. They are in my name to use up my tax allowance as I don't work as Ilook after our young children.

We currently rent a house-due to hubbie's job, but are now looking to buy our own to live in which we will need a mortgage for. We were looking to put the house in my name to offset interest paid against income from the rent we get.

However......it seems like the house can not be just in my name, because the mortgage will need to be in husbands because I don't earn enough from rentals to get the mortgage we need

Any ideas on how we can do this?????????????

Thanks very much.

silvercar

You would only be able to offset the mortgage interest upto the value of the rental properties when you first started renting them out.

The other option is to raise the mortgages on the properties that are let out. The amount that you would be allowed to borrow would be dependent on the rental income. I am thinking along the lines of a BTL mortgage on the house and a commercial mortgage on the unit.