Buy to Let Mortgages

LynnForest

Hello,

Please can i ask the experts here, are there any off set buy to let mortgages available?

Can anyone recommend one please?

Thanks in advance for any advice given

Lynn

Mutton_Geoff

LynnForest wrote: »

Hello,

Please can i ask the experts here, are there any off set buy to let mortgages available?

Can anyone recommend one please?

Thanks in advance for any advice given

Lynn

Have you tried here?


Surely though, you need the mortgage interest to be a business expense (since mortgage interest offers income offset and tax relief albeit at much lower rates than in the past). It wouldn't make sense to use personal funds (that could be earning 1.5% or more interest) to be offsetting a business expense?

dimbo61

Don't let the tax tail wagg the dog.
Get the best BTL rate you can.
Worry about tax relief later

Mutton_Geoff

dimbo61 wrote: »

Don't let the tax tail wagg the dog.
Get the best BTL rate you can.
Worry about tax relief later

Good advice but the OP's post was about offsetting. As BTL is a business, I was hoping they were going to offset business cash against a BTL loan but my suspicion is they will use personal savings to offset business debt which means they aren't viewing the BTL proposition as a business.


Using personal cash (savings) to offset a business debt to reduce any potential tax saving is not good use of money, surely?

anselld

Mutton_Geoff wrote: »

Good advice but the OP's post was about offsetting. As BTL is a business, I was hoping they were going to offset business cash against a BTL loan but my suspicion is they will use personal savings to offset business debt which means they aren't viewing the BTL proposition as a business.


Using personal cash (savings) to offset a business debt to reduce any potential tax saving is not good use of money, surely?

BTL is a business but unless it is run under limited Co there is only one pot of money, similar to sole trader businesses. So it is perfectly reasonable use of personal savings if the net BTL interest rate exceeds the net savings rates available.

What would not be sensible is to take a higher than necessary interest rate simply in order to get an offset facility.

LynnForest

Thank you for the advise. lots to think about. Thank you for that.

I do not have business.

Just an individual that will be renting out their home as I move somewhere else.

I have always had a residential offset mortgage , that has been great for me.

Now just thinking what mortgage options I have now with renting , and thought offset may be good again...

Thanks.

gary83

all of a sudden you will be running a business, with all of the tax obligations, not to mention the rest of the obligations that go along with being a landlord - annual gas safety checks, protecting deposits, issuing correct paperwork, doing anything wrong could be a costly mistake. Not trying to put you off, just make sure you have your eyes wide open as you do it. Despite the regular protests on here, there's no such thing as an "accidental" landlord.

grumiofoundation

LynnForest wrote: »

I do not have business.

As other posters have said you will be running a business. You will be receiving money in return for a service and paying tax on monies received.

If you approach being a landlord with the mindset that you are renting out “your home” rather than as a business transaction you are risk being too emotionally invested? How will you react if the property is not kept in the way you would like, if the tent doesn’t pay you rent?

You need to approach this as what it is - a business.