10:15 AM, 2nd October 2014, About 10 years ago 8
I am renting out a flat with a mortgage of £100k which has come to the end of it’s latest deal. I have another mortgage on the house I live in which is £200k and it’s worth £350k.
I have been doing some sums and it appears that if I take the £100k mortgage from the flat and add this to my house (let’s assume affordability isn’t a problem) leaving no mortgage on the flat and £300k on the house, then I think I’ll actually be better off. This is due to the interest against the new loan being a lot less than with a BTL rate and even after taking into account the tax deductions.
So I’m left wondering if I’ve totally missed something as everyone says to mortgage BTL properties up to hilt so you have more to offset against the tax from the rental income. Or does this sound like a good plan?