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Holiday Let - Remortgage of own home viable?

Holiday Let - Remortgage of own home viable?

We're hoping to buy a property which we will run as a holiday let.  To pay for the holiday let we would use part cash and the rest we would raise through remortgaging our own home. We do not currently have a mortgage on our home, so it would be easy to show that the capital raised through remortgaging was being used directly for the purchase of the holiday let (we may even remortgage more to buy two holiday let properties).  

Would we be able to offset the interest payments of the remortgage against the rental income of the holiday let(s)?  Or does the mortgage / loan need to be specifically against the holiday let property.  If the latter is the case, dose that mean if we wish to build our portfolio we will have to keep taking out separate mortgages? 

Thanks in advance for any help, I've done quite a bit of researching on the web and even though I believe a few years ago we would have been OK offsetting the remortgage, I'm not sure that is still the case. 


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By ACDWebb
27th Jun 2012 09:36


you could offset. The purpose of the loan is to purchase the property for the letting business. What that loan is secured on does not matter, it is the purpose

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