Hi all,
First post, just joined the site today.
I own a small flat which I had originally intended living in but a long story involving working overseas and later getting married meant that when I moved back we instead bought a house together and the flat has remained rented out. Now I was pretty much making a loss on it until recently as the loan interest, management fees etc was higher than the income but with low interest rates and the owed amount falling I am starting to pay a fair bit of tax on the rental income.
It struck me that it would be better for me if I could re-mortgage the flat, ideally to 100% of its value and use the money to pay off a portion of the mortgage on my home reducing my tax liability and my home mortgage at the same time. Does anyone know if lenders would be likely to entertain such a scheme or if there are any flaws in this plan that I haven't considered.
Thanks in advance, any thoughts appreciated.
First post, just joined the site today.
I own a small flat which I had originally intended living in but a long story involving working overseas and later getting married meant that when I moved back we instead bought a house together and the flat has remained rented out. Now I was pretty much making a loss on it until recently as the loan interest, management fees etc was higher than the income but with low interest rates and the owed amount falling I am starting to pay a fair bit of tax on the rental income.
It struck me that it would be better for me if I could re-mortgage the flat, ideally to 100% of its value and use the money to pay off a portion of the mortgage on my home reducing my tax liability and my home mortgage at the same time. Does anyone know if lenders would be likely to entertain such a scheme or if there are any flaws in this plan that I haven't considered.
Thanks in advance, any thoughts appreciated.