Hi
Looking for advice
My Husband and I are in the process of buying a new family home .. our existing home we were hoping to keep on and rent as a long term investment.
The mortgage on it was paid off in 2015 and we have managed to put together almost 2/3 of the cost of the new home so we are in a very comfortable position thankfully.
However looking at the figures closely we are not sure if this is a prudent move ...
As there is no mortgage on the original property we cant claim for mortgage interest and thus all rental income will be taxable [ less allowable deductions]
Could we take the mortgage we need to purchase the new property out on the original home ? [It would probably need to be a buy to let mortgage] and if so could we claim the mortgage interest accruing against the rental income ?
Any suggestions /advice welcome
Looking for advice
My Husband and I are in the process of buying a new family home .. our existing home we were hoping to keep on and rent as a long term investment.
The mortgage on it was paid off in 2015 and we have managed to put together almost 2/3 of the cost of the new home so we are in a very comfortable position thankfully.
However looking at the figures closely we are not sure if this is a prudent move ...
As there is no mortgage on the original property we cant claim for mortgage interest and thus all rental income will be taxable [ less allowable deductions]
Could we take the mortgage we need to purchase the new property out on the original home ? [It would probably need to be a buy to let mortgage] and if so could we claim the mortgage interest accruing against the rental income ?
Any suggestions /advice welcome