Interest on private loan

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Olly replied

25 May 2017, 08:04
Originally posted by eek View Post

That sounds overly complex with a lot of risk (both monetary and tax related) for zero benefit. Surely all she needs to do is to get a BTL mortgage from a bank and repay it...

I knew I could rely on you lot
I don't know know if there is tax implication that's what I'm trying to find out. Talking about it in terms of risk when the answer is probably far more clean cut seems unusual.

The monetary risk to me is there of course - I will be putting a charge against her property and a contract to mitigate this just as much as commercial lender would do.

BTL rates are higher than I can achieve by taking a mortgage against my home + she doesn't have sufficient equity to (Loan to Value Ratio) to qualify.

.....now back to the question
Leave a comment:
eek replied

25 May 2017, 07:29
Originally posted by Olly View Post

Long time no post - I'm temporarily a permie
...however, recalling what a helpful bunch you all are I thought I'd chance asking this here.

I wish to lend my partner money to buy her house outright that she'll then rent out. To do so I intend to take a repayment mortgage against my property.
She will be making the repayments, if it helps this can be direct to my lender.

Would I have to pay tax on the mortgage interest? (note I will not be benefitting financially, what I pay, she pays)
Thoughts welcome please as I've had conflicting advice from accountants.

Ta

That sounds overly complex with a lot of risk (both monetary and tax related) for zero benefit. Surely all she needs to do is to get a BTL mortgage from a bank and repay it...
Leave a comment:
Olly started a topic Interest on private loan

25 May 2017, 07:25
Interest on private loan

Long time no post - I'm temporarily a permie
...however, recalling what a helpful bunch you all are I thought I'd chance asking this here.

I wish to lend my partner money to buy her house outright that she'll then rent out. To do so I intend to take a repayment mortgage against my property.
She will be making the repayments, if it helps this can be direct to my lender.

Would I have to pay tax on the mortgage interest? (note I will not be benefitting financially, what I pay, she pays)
Thoughts welcome please as I've had conflicting advice from accountants.

Ta
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