taking out residential mortgage to pay of BTL Mortgage
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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.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
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
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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.0
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