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Financial advice & mortgages advice.

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Hello everyone. I was after some. Financial & mortgages advice from the smart people on HUKD. If you own your house outright and have a job overseas can you remortgage and then rent it? Or do you nee… Read More
bkpatel Avatar
4m, 2w agoPosted 4 months, 2 weeks ago
Hello everyone. I was after some. Financial & mortgages advice from the smart people on HUKD.
If you own your house outright and have a job overseas can you remortgage and then rent it? Or do you need to get a buy to let mortgage? Can you offset mortgage payments with rental income to reduce tax? Anyone had experience of this? Or point me in the right direction. Thanks in advance
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bkpatel Avatar
4m, 2w agoPosted 4 months, 2 weeks ago
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Best Answer
As you already own the property outright and want to let the property to buy another you need a Let to Buy Mortgage not a buy to let mortgage. A let to buy mortgage is based on the property value as opposed to a buy to let mortgage which is based on the monthly rental value.
My Let to Buy Mortgage is with The Mortgage Works (part of The Nationwide)
You can offset the mortgage interest along with letting agents fees, annual maintenance, British Gas homecare etc.

Edited By: Toptrumpet on Jan 06, 2017 13:07

All Responses

(11) Jump to unreadPost an answer
Responses/page:
#1
Why would you get a mortgage on a house that you own outright? Surely that's just throwing money away.
#2
It would have to be a buy to let mortgage and yes you can deduct the interest paid on the mortgage from the total taxable income.
#3
coco2007
Why would you get a mortgage on a house that you own outright? Surely that's just throwing money away.
The cash is to pay for the place to rent overseas.
#4
FireStarter51
It would have to be a buy to let mortgage and yes you can deduct the interest paid on the mortgage from the total taxable income.
Could the rent paid at the new place be taken into account?
#5
bkpatel
FireStarter51
It would have to be a buy to let mortgage and yes you can deduct the interest paid on the mortgage from the total taxable income.
Could the rent paid at the new place be taken into account?


The rent you're paying overseas? No, unfortunately it doesn't work like that.
#6
FireStarter51
It would have to be a buy to let mortgage and yes you can deduct the interest paid on the mortgage from the total taxable income.

Not any more.Big changes have been made to the Buy to Let business.
#7
bkpatel
coco2007
Why would you get a mortgage on a house that you own outright? Surely that's just throwing money away.
The cash is to pay for the place to rent overseas.

Won't the rent from your current place cover the cost of the rent for the overseas place?

Edited By: SuffolkLad222 on Jan 06, 2017 08:54
#8
bkpatel
coco2007
Why would you get a mortgage on a house that you own outright? Surely that's just throwing money away.
The cash is to pay for the place to rent overseas.
Wouldn't it be easier to save enough to cover yourself a few months rent overseas then rent out your property at the same time you rent overseas using the rent from your property to cover your overseas rent?
I say have a few months in the rent saved just in case you have a delay in getting someone to rent your property.

That way you avoid the hassle and cost of a re-mortgage and don't pay any interest

Edited By: joedastudd on Jan 06, 2017 09:02
#9
Firstly, you can't offset the mortgage payment against tax unless you go down the route of creating a company.
If you live overseas for extended periods you might not need to pay U.K. Tax on it anyway, but this would be down to you circumstances.
Do you currently pay U.K. Tax? If not, remember your tax free allowance would be available.
As for the mortgage, it's a grey area. Technically you would need a buy to let mortgage, but some mortgage companies would allow you to rent out a property on a standard mortgage. Your best best would be to speak to an independent mortgage adviser and go from there.
#10
As you already own the property outright and want to let the property to buy another you need a Let to Buy Mortgage not a buy to let mortgage. A let to buy mortgage is based on the property value as opposed to a buy to let mortgage which is based on the monthly rental value.
My Let to Buy Mortgage is with The Mortgage Works (part of The Nationwide)
You can offset the mortgage interest along with letting agents fees, annual maintenance, British Gas homecare etc.

Edited By: Toptrumpet on Jan 06, 2017 13:07
#11
Toptrumpet
As you already own the property outright and want to let the property to buy another you need a Let to Buy Mortgage not a buy to let mortgage. A let to buy mortgage is based on the property value as opposed to a buy to let mortgage which is based on the monthly rental value.
My Let to Buy Mortgage is with The Mortgage Works (part of The Nationwide)
You can offset the mortgage interest along with letting agents fees, annual maintenance, British Gas homecare etc.
Thank you and Thanks to everyone else too.

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