Dear All,
This subject has probably been done to death and I apologise if my posting on the subject is unwelcome repetition. However, I wanted to seek advice th at is both current and applicable to my particular situation.
I am in the process of buying a second house, in England (where my first an d only other property is). The second house is being paid for out of my own cash (i.e. no mortgage) and it will be rented out. My intention is to rais e a mortgage on the second property, after purchase, and use that money to pay off some of the mortgage on the house I own and live in.
As I understand it, I can obtain tax relief on rental payments correspondin g to the interest component of the mortgage I raise on this second house. I s this correct? Are there any pitfalls that I should be aware of? For examp le, does it matter that I will buy the house outright, in cash, before rais ing a mortgage? Does it make any difference, finanacially, whether the hous e is in my name or my wife's? Currently, the house that I own and live in i s in my name and the second house will also be in my name (unless I get on the blower to the solicitor fairly sharp-ish).
Thanks for any advice you can offer.
Regards,
Jim.