New mortgage

[ChimpMaster]

Erm, no. You're in business, aren't you? Interest on a loan is only deductible to the extent that the loan is used for business purposes, so any loan on a BTL to fund a private residence will not be for business purposes and therefore not deductible.

It doesn't matter that the collateral (your BTL) is a business rental, it's the purpose that you use the loan money for.

Yes I'm in business, thanks for asking.

As for intent of capital allocation, there are ways and means. OP could even buy her resi home and then release equity to fund a BTL, which would make part of the interest on her home mortgage a tax deductible expense. Centurian's post above does well to highlight the possibilities available in using equity.

How many properties are you managing in your own investment portfolio?

[Kitten1978]

So, Kitten1978, do you put the chutney spoon back once you have licked it?

In regards to your other questions - yes, natural to feel nervous taking on more expense but with all that cash sloshing around in the system wages/rates could well keep pushing up and as long as you keep with current skills and make good connections as your rate should move up too. Yes, we are going to be hit with dividend tax and possibly shafted over expenses too so you definitely need to take that into account when budgeting for the future. What market are you in and what is contract availability like at present?

Urrrgh no I wash it up, what do you think I am!?! :-) Haha

I am in BI, SQL Server, (SSAS, MDX, SSRS, SSIS) and the market *touch wood* is looking good at the moment.
I am intending on over paying the mortgage.
That dividend tax is a nightmare, I signed a petition about it, don't know if it will do much good but still...

[northernladuk]

That dividend tax is a nightmare, I signed a petition about it, don't know if it will do much good but still...

It's not as bad the IR35 situation to be fair.