Mortgage Tax Relief

[Mike B]

Sorry if this has already been asked, but I can't find an exact duplicate:

I currently own a house outright - i.e. my main residence and no mortgage.

I am considering purchasing a BTL property.

If I borrow the money for the BTL by taking out a mortgage against my own property, can I claim tax relief for the mortgage interest against the rental income from the BTL?

Many thanks.

[Taxation Solutions]

The interest paid on monies used to fund the purchase of a BTL property will qualify as an expense against the BTL rental income.

Jason
www.propertytaxation.co.uk

[landlord mortgages]

I totally agree with Jason, take his advice

Regards
Lee

[Mike B]

Jason & Lee,

Very many thanks for your advice.

Best wishes,

Mike B :)

[Tax Accountant]

Landlord Mortgages states :

''Landlords make money buying property at under market value, then refinancing with a buy to let mortgage to market value.''

It would be interesting to know where these undervalued properties are so that we could all go out and snap them up and resell at a profit.

If only it is that simple.

Ramnik

[landlord mortgages]

With respect Ramnik my clients are, so whilst I am sure its harder for them today they are keeping our firm busy.

Like any business its a numbers game....I will give you one tip that does work...........

Send 1000 letters to predominantly ex council estates asking them if they want a quick sale..you will get a good result

Easy? no....Landlords will assess on average 163 properties to get one under market value property BUT looking at the figures it seems that one deal will pay the landlord the equivalent of the average YEARLY salary:-

easy? no, but good earner for time expended? YES

Too many give up before they really get started...new build buying is a poor excuse for not putting effort in...human nature will make you look for the easy option when it doesn't exist.

Lee

[Tax Accountant]

Lee,

Your logo, ''Landlords make money buying property at under market value, then refinancing with a buy to let mortgage to market value'' sounds as if Landlords have only to pick up a phone to you to buy properties at under value.

I suppose that this is true of almost all things in life and stating the obvious. If you shop around, you are likely to buy at a better price and perhaps also of a better quality.

And thank you for the tip regarding ex-local authority properties. Do you have in mind any specific properties which Landlords could evaluate?

Ramnik

[landlord mortgages]

Amusingly..I probably sold my let property at under market value because I had no time to 'do up' before selling...thats normal life and normal life creates many opportunities, just look.

Laziness creates no opportunity

Lee

[Tax Accountant]

Amusingly..I probably sold my let property at under market value because I had no time to 'do up' before selling...thats normal life and normal life creates many opportunities, just look.

Laziness creates no opportunity

Lee

Why am I not surprised that even you fell into the trap of laziness and probably ended up selling your let property at under market value because you had no time to do it up before selling.

But as I said before, ''this is true of almost all things in life and stating the obvious. If you shop around, you are likely to buy at a better price and perhaps also of a better quality.''

There are opportunities in all walks of life for those who want to save money or make money and not just talk about it.

It is a fact of life that most people just don't want to be bothered about it.

Ramnik