BTL - ofsetting the interest against main mortgage
Discussion
Hi,
What's the most efficient way of handlig a BTL mortgage when you also have a larger mortgage on your main residence? I have a relatively small mortgage on a place I rent out. Is there a way I can use money from my main house\mortgate to pay off that mortage & offset the interest of the whole then single mortgage against the income from the rental of the first property? does that make sense?
Alternatively, what's the recommended way of dealing with them? Keep them in isolation & manage each against it's income alone?
cheers,
a
What's the most efficient way of handlig a BTL mortgage when you also have a larger mortgage on your main residence? I have a relatively small mortgage on a place I rent out. Is there a way I can use money from my main house\mortgate to pay off that mortage & offset the interest of the whole then single mortgage against the income from the rental of the first property? does that make sense?
Alternatively, what's the recommended way of dealing with them? Keep them in isolation & manage each against it's income alone?
cheers,
a
Hi guys, sorry for the slow reply.. thanks for the responses so far.
Wings.. I think that's what I was thinking about..
Eric - I actually recently extended by BTL mortgage (currently on interest only) to fund the deposit on my new residence. On interest only, it just about brakes even profit wise after management fees as it stands right now.
So following Wing's comment, I could, in theory re mortgage again (or when the time is right) & move the whole debt over to the main residence & offset the whole interest against the profits from the BTL? I have read that somewhere before but have so far not been able to nail down the details & pros\cons. I guess there's bigger risk in terms of risking the main home, but it pretty much guarentee's that I'll never make a profit & thus pay tax on the income.
Or is the way eric suggests the right way forward?
thanks!
A
Wings.. I think that's what I was thinking about..
Eric - I actually recently extended by BTL mortgage (currently on interest only) to fund the deposit on my new residence. On interest only, it just about brakes even profit wise after management fees as it stands right now.
So following Wing's comment, I could, in theory re mortgage again (or when the time is right) & move the whole debt over to the main residence & offset the whole interest against the profits from the BTL? I have read that somewhere before but have so far not been able to nail down the details & pros\cons. I guess there's bigger risk in terms of risking the main home, but it pretty much guarentee's that I'll never make a profit & thus pay tax on the income.
Or is the way eric suggests the right way forward?
thanks!
A
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