interest only buy to let mortgage
Discussion
mike74 said:
Not entirely sure I could be described as a "crashist" given that I'm mortgage free and my property is worth more than 3x what I paid for it in 2001... I am someone who is intelligent enough to recognise that that level of insane HPI is of no benefit what so ever to me personally as a single property owner occupier and its certainly of no benefit to the wider economy or society as a whole.
I'm also someone who recognises what huge damage btl has done to the property market and I'm relieved that the greedy simpletons who dived into it are now justifiably being targeted by the Chancellor and the BoE.
Finally I'm someone who is sick of the deluded morons and kiteflyers who put their property on the market for ridiculous asking prices and don't have the intelligence to figure out why it won't sell.
sounds like you need to relax more, Mike;)I'm also someone who recognises what huge damage btl has done to the property market and I'm relieved that the greedy simpletons who dived into it are now justifiably being targeted by the Chancellor and the BoE.
Finally I'm someone who is sick of the deluded morons and kiteflyers who put their property on the market for ridiculous asking prices and don't have the intelligence to figure out why it won't sell.
you are using very broad brush strokes here, and know nothing of my situation, or IQ
Sir Bagalot said:
Nope, I'm not getting confused, but this time I'll give you an exact answer.
The maximum interest you can offset is on a loan equivalent to the value of the property when it first entered the rental market. You could also offset the interest if capital improvements were made.
So in the above example if you starting renting it out when it was worth £85K, now worth £200K and you remortgage for £150K then the most you can offset if £85K.
If you however had spent £10K on capital improvements then this too can be offset but if you used that other money to buy your PRP then it can't be offset.
If however you put that additional money into a deposit for another BTL then yes, it can be offset against tax.
Things of course would be different if you rented it out, then moved back in (long enough to satisfy HMRC) and then rented it out again.
We wil be ok then, our flat is currently advertised for 20% less than its value in 2003!The maximum interest you can offset is on a loan equivalent to the value of the property when it first entered the rental market. You could also offset the interest if capital improvements were made.
So in the above example if you starting renting it out when it was worth £85K, now worth £200K and you remortgage for £150K then the most you can offset if £85K.
If you however had spent £10K on capital improvements then this too can be offset but if you used that other money to buy your PRP then it can't be offset.
If however you put that additional money into a deposit for another BTL then yes, it can be offset against tax.
Things of course would be different if you rented it out, then moved back in (long enough to satisfy HMRC) and then rented it out again.
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