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Paying off mortgage to buy second one

Hi, I am planning to pay off mortgage on my existing property and buy second property -bigger than the existing one - on mortgage. I was told that I would need to pay tax on my rental income from my first property. What would be the best way? Would I better off 1) Keeping the existing mortgage and get another one to buy second? 2) Can I get two mortgages? 3) What is the best way to have two properties?

Asked on Mar 1 2014, General in Woking | Report content

Answers (1)

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  • You need a financial adviser to answer this properly, but I will just observe: If you start renting a property that is mortgaged you will need to tell the lender. If you re mortgage the rental property with 'Buy to Let' mortgage then the lender will judge the affordability by whether the rental income covers the repayments. The mortgage is a business expense so can be set against taxable profits from renting. You can have more than one mortgage if you can convince a lender you can afford it.

    Answered on Mar 2 2014, Report content

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