I'm thinking a renting my flat out & buying a new property, thing is I loose the £65K equity I have in the flat right now.

I've heard that some lenders let you use the equity in the rented property agaist another house.

Any ideas who offers this??

I used the equity in my main house as a deposit for a buy to let rental property (via a remortgage) - if it helps !!

They don't tend to care where you get the money from providing you can afford the payments and pass the credit checks etc

may i ask who with?

you may ;)

Main mortgage is with standard life - buy to let is with verso

why not remortgage the flat you are renting to release some of the equity?

You see, the higher the mortgage on the rented flat, the more you can offset rental payments against the interest part of the mortgage - tax dodge you see!! So, the larger the mortgage on the flat, the more you stand to gain in terms of avoiding tax....

If you leave things as they are, you'll have to pay more tax on your rental "profit".

That's what I did - both my main mortgage and my buy-to-let are with Std Life.

yup indeed - that is if you where actually renting out the buy-to -let ;);)

Not strictly true.

You can only claim interest, offset against tax, on a mortgage no higher than the original purchase price.

For example you bought your place for £60K with a £45K mortgage. It's now worth £120K.

You want to raise money to buy a place to let out.

Increase the mortgage by all means but you can only offset the first £60K (original purchase price) against tax.

Claim more by all means but that tax evasion and there are two things you need to know in life.

1/ Don't screw the tax man
2/ Don't screw Customs and Excise

I stand corrected :-)

Best to get advice from your accountant for all tax issues :-)))))

I did wonder with this "dodge" what would stop one from just remortgaging every few years higher and higher....

PS I've never avoided tax in my life....prob why I am not rich :-(