MartinM

I can increase the borrowing by (or drawdown - think they are the same thing?) a fairly substantial amount on my BTL mortgage, which when combined with a rate switch is a very attractive proposition.

Whether it's increasing the borrowing or drawing down, it will result in a nice big cheque arriving

So will the additional mortgage amount (over what I pay now) be fully allowable as an expense when working out the income/expenditure for tax purposes:
a) if I use all the money to fund another property purchase
b) go spend it at the local Porsche dealer
c) do both!

I've done some research and it's not that clear....at the end of the day, I can show the tax man the (new) mortgage statement that shows the amount of interest paid and mortgage interest is an allowable expense and all I've done is reduced my equity in the property (so can I call the Porsche dealer this afternoon?)

pslewis

Would it be a business expense then?

lozgti

I'm being thick here,but is this equity release?

With equity release aren't you just paying to borrow your own money?

MartinM

PSL - as a normal salaried employee that happens to have one BTL property I don't think I can swing a Porsche as a business expense

loz - only a bit thick. It's money I never had (gained through property price increase) and the tenants are paying the interest, not me. Yeh, I know I could pocket the rent from the tenants instead, but that's not how the game works. I can do a rate switch which will cost me £2 per month more than now, and the BS will send me a cheque for a long way north of £30K at the same time - enough for another property or a very expensive doodad