With the introduction of new tax rules that remove the opportunity to offset mortgage interest payments, landlords are looking for alternative means to service their buy-to-let portfolios. Taking advantage of the equity held in the landlord’s own residential property is one option that is being considered due to the attractive rates available on residential mortgages.
Key Takeaways:
- Thousands of buy-to-let landlords are facing a dilemma of whether to sell up and give up, or plug on with their property businesses.
- Some landlords are considering taking out residential mortgages against their own homes, and using the money released to pay down their buy-to-let debt.
- The method of replacing expensive debt with cheap debt is common, and is done by investors who take out mortgages against their home to add properties to a portfolio.
“It’s a dilemma faced by thousands of buy-to-let landlords: should they sell up and give up, or plug on with their property businesses – even if in future it might make a loss?”