Should I Pay Cash Or Get a Mortgage to Purchase Buy to Let Property?
Question I have a quick question regarding the deduction of mortgage interest from tax on the rental income generated from a buy to let. Basically, I was wondering, if I bought a property in cash and then got a mortgage on it almost immediately, would this be acceptable for tax deduction (as opposed to buying it with a mortgage in place)?
The reason being twofold: firstly, I think that the mortgage lender is keener for me to do this, and secondly, I am afraid I will lose out on the property if I don’t move quickly.
I want the other cash to purchase another property. I am in the somewhat luxurious position of being cash rich but with no income. This makes mortgages somewhat of a problem, despite the fact that I have the cash to buy outright with plenty to spare. The point of the exercise would be to give me an income (the rent covers the mortgage interest and plenty spare).
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