remortgage fees and layer fees

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    remortgage fees and layer fees

    done a remortgage on a rent al property can i set the fees and laywer fees as an exspense

    #2
    Yes - although they should probably be amortised over the period of the loan.

    Comment


      #3
      Ditto. I always amortise mine, although it's such a pain doing the maths that I do sometimes wonder whether HMRC would really be all that cross if I just deducted them straight off....

      Comment


        #4
        While you are meant to amortise them, that always strikes me as a little unfair, because BTL mortgages don't always run to the full term,
        and given the low value, a catch up when the mortgage ends early is required.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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          #5
          Yes, I have been dutifully amortising some initial mortgage costs over a notional 10 year term, knowing full well all along that I intended to remortgage after the 2-year fix. This'll presumably mean a big deduction in the year in which I do effect the remortgage.

          Another related question: when instead of remortgaging I simply do a product switch with the same lender, presumably any fees related to the product switch are also amortised over the live of the remaining term of the mortgage, alongside the initial costs? Over a long-term mortgage doing product switches every 2 years I can see this getting painfully complicated....

          Comment


            #6
            Yes. there will be a "balancing" deduction in the year of re-mortgaging.

            There could be an argument that a product switch could be treated the same as a re-mortgage.

            There is no problem tracking amortisation if proper accounts are prepared.

            Comment


              #7
              Originally posted by King_Maker View Post
              There could be an argument that a product switch could be treated the same as a re-mortgage.
              Thanks for the reply. I think that taking that approach would be much easier than deducting multiple amortisation sums for each mortgage every year.

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