johnjw
17-03-2005, 00:11 AM
I own a house which I am preparing for letting. There is no mortgage on the house. I anticipate that the work of preparation, which includes some structural work as well as purchase of carpets and curtains, will cost about £15000.
For this work, I wish to use capital raised through a bank loan for £15000 and secured on my own dwelling. This is cheaper than raising a loan using the rental property as security. I intend to ask that the bank loan be called "rental property loan".
Could there be any problem in setting the interest on the loan (about £900 p.a.) against the rental income? I will of course have the receipts for the work done and materials used and these will add up to about £15000. I ask, because I believe it can be difficult to introduce a mortgage on to a rental property which has been owned for some time without mortgage.
Any advice on this will be appreciated.
For this work, I wish to use capital raised through a bank loan for £15000 and secured on my own dwelling. This is cheaper than raising a loan using the rental property as security. I intend to ask that the bank loan be called "rental property loan".
Could there be any problem in setting the interest on the loan (about £900 p.a.) against the rental income? I will of course have the receipts for the work done and materials used and these will add up to about £15000. I ask, because I believe it can be difficult to introduce a mortgage on to a rental property which has been owned for some time without mortgage.
Any advice on this will be appreciated.