how much deposit? - tax question

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    #1

    how much deposit? - tax question

    Hello,

    I want to pay off a mortgage on a new buy to let as quickly as possible. I need to save up for a deposit for another house (for me to live in i.e. not a rental one). I am marginally better off paying down the mortgage instead of putting the cash in a savings account even though I will have to pay extra tax on my rental profits.

    My question therefore is...

    If I pay down the mortgage as quickly as possible, and then in a couple of years get a remortgage in order to raise a deposit for my new house, is the new higher mortgage all tax deductible.

    Arusha
    I'm trying to raise awareness of Myotonic Dystrophy, Pre-implantation Genetic Diagnosis (PGD) and In vitro fertilisation (IVF). Follow my PGD blog and please pass it on to any one you know who has an interest in PGD or IVF.
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    #2
    You can refinance your BTL up to the value when it was first let, plus any subsequent capital additions and the interest costs will still be deductible.

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