Can I transfer mortgage from 1 house to another?

silvercar

Captain_Mainwaring wrote: »

That's nothing like the same thing - you can only use the portion used for deposit to offset. You can't use the lot!!

I'd be very careful about a liability to capital gains on the portion of the value of the primary residence used to secure an advance for a deposit.

This is a very dangerous game.

Securing loans against your home does not reduce entitlement to PPR.

Better agree to disagree.

Captain_Mainwaring_2

How about offsetting your mortgage interest from your primary residence again tax?

I said I'd be very careful, and having read the rest of this thread it is clear that the services of a decent accountant are required.

Can you imagine claiming interest relief against tax for 6 years and then being investigated and having it knocked back?

Can I claim back loss of interest on my savings too?

silvercar

How about offsetting your mortgage interest from your primary residence again tax?

The mortgage interest is a legitimate expense of the rental business and so the interest paid is a cost of the business and so can be set against the (rental) income of that business.

I said I'd be very careful, and having read the rest of this thread it is clear that the services of a decent accountant are required.

I do and hence minimise my tax bill.:)

Can you imagine claiming interest relief against tax for 6 years and then being investigated and having it knocked back?

No, because I'm claiming the interest against rental income not against my personal tax bill.

Can I claim back loss of interest on my savings too?

I presume this was a silly comment, but if not I suggest you consider the tax implications of your business first.

Here is a link to this topic which was discussed on here months ago. Ignore my posts as you seem to be unhappy with them. Take note of MarkymarkD and Jimmo's views. Jimmo is an ex tax-inspector and explains BM45700 in detail. Half way through the thread Jimmo (#28) went back to HMRC and revised his view.

http://forums.moneysavingexpert.com/showthread.html?t=378750&highlight=mortgage+interest

Captain_Mainwaring_2

You could possibly claim relief on interest derived from advance used to fund a deposit or perhaps major repairs.

It is total rubbish to imply that all of the interest on the primary residence can be offset against rental income, you can't - only the portion used for purposes in direct connection with the renter.

You are suggesting that effectively anyone with a mortgage on their primary residence would have no tax to pay on income from a renter.

What you are qouting is retrospective, you make no mention of a benefit in kind .

Your example is valid for a very limited group of circumstances - you would have to clearly show that the reason you have incurred a debt on the primary residence was in direct connection with the funding of the renter.

And you forgot to mention that in very few cases is renter income anything other than supplemental income -

The wife then buys a new property in her sole name for £200k paying cash. She then lets the new property out.
Then, it is relatively straightforward to see that she has opened her letting business by putting into the business the property that she owns in her own name. The lettings business then has an asset, the property, worth £200,000 and it owes her £200,000.
When the couple re-mortgaged their home they effectively acquired cash of £200K (£100k each).Her share went straight into her lettings business and the interest will be allowable.

Yes, this is a valid example, but Joe Soap who has his own property with a mortgage and buys a renter, using say 10K savings as the deposit would not be entitled to tax relief on the interest charges from the primary residence. Only if he could show that he took an advance from the primary residence to fund the finances of the residence could he offset that interest incurred against the income from the renter, he can't use all of the interest to offset, which is what you appear to be implying.

We are talking about a straightforward "directors loan" if you like, in accordance with this...

When my accountant sorted my tax last year on our buy to let, he obviously took straight into account the mortgage on the property but also asked if we had secured any money against our existing property to buy the place . he offset the interest payments on the whole £57K we had secured against our own home.

I don't disagree at all with the assertions in the post you quote.

steersey44

MarkyMarkD wrote: »

The new mortgage would be for under 90% LTV; the original mortgage was for just over 70% LTV. That difference isn't particularly a big deal - most lenders are happy lending up to 90% and most charge the same rate for 70% LTV as for 89%.

So I don't think it will be a problem, let alone "no chance".

i am in a similar possition i want to sell my house i have had it valued at 265,000 and i want to pay off all my debts and buy a cheaper house for around 180,000 i have an out standing mortgae of 136,000 because i have been struggling my credit rating is not good, can i take my mortgage with me