Should I remortgage?

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Topic Author
Ugglan
Posts: 2
Joined: Thu Nov 07, 2019 2:58 am

Should I remortgage?

Post by Ugglan » Sat May 23, 2020 4:34 am

Hi all,

I'm looking for some advise as my mortgage deal is ending in the next few months. To give you some background, I'm a UK/US citizen living in the UK. I bought a flat in 2016 in London and don't own any assets in the US (have only lived there approx one year in my life).

I'm thinking about renovating my flat and would like to take out additional mortgage when I remortgage. In aware there may be tax implications when I remortgage.

Does anyone know if there are tax implications of taking out more mortgage when remortgaging? And how do I calculate the potential tax the remortgaging may cause?

Thanks so much!

WienerG
Posts: 20
Joined: Thu Feb 06, 2020 6:11 pm

Re: Should I remortgage?

Post by WienerG » Sun May 24, 2020 2:31 am

Ugglan wrote:
Sat May 23, 2020 4:34 am
Hi all,

I'm looking for some advise as my mortgage deal is ending in the next few months. To give you some background, I'm a UK/US citizen living in the UK. I bought a flat in 2016 in London and don't own any assets in the US (have only lived there approx one year in my life).

I'm thinking about renovating my flat and would like to take out additional mortgage when I remortgage. In aware there may be tax implications when I remortgage.

Does anyone know if there are tax implications of taking out more mortgage when remortgaging? And how do I calculate the potential tax the remortgaging may cause?

Thanks so much!
The question is not whether you should remortgage or not (post title) the question is whether you should offset your renovation costs against an increase in borrowing. Without any relevant detail, the answer is it depends.

Wrt, taxation. If it is your primary residence, then there is very little you can deduct (at least that is my understanding if UK tax law - I am not even sure you can offset interest (or a % thereof)) any more since MIRAS was stopped a few years back.

WienerG

TedSwippet
Posts: 2822
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Should I remortgage?

Post by TedSwippet » Sun May 24, 2020 2:51 am

WienerG wrote:
Sun May 24, 2020 2:31 am
Ugglan wrote:
Sat May 23, 2020 4:34 am
I'm looking for some advise as my mortgage deal is ending in the next few months. To give you some background, I'm a UK/US citizen living in the UK. I bought a flat in 2016 in London and don't own any assets in the US (have only lived there approx one year in my life).

I'm thinking about renovating my flat and would like to take out additional mortgage when I remortgage. In aware there may be tax implications when I remortgage.

Does anyone know if there are tax implications of taking out more mortgage when remortgaging? And how do I calculate the potential tax the remortgaging may cause?
Wrt, taxation. If it is your primary residence, then there is very little you can deduct (at least that is my understanding if UK tax law - I am not even sure you can offset interest (or a % thereof)) any more since MIRAS was stopped a few years back.
No UK tax issues, but the topic author is a US citizen, so there may be US tax issues to consider. Remortgaging a non-US mortgage can realise 'foreign currency gains' that are then US taxable as if income. More here:

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