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We're coming out in August and renting our house because it's lost money.
You only have to pay tax on the rent you take if you are continuing to pay off your capital.
We've switched to interest only for 2 years. The money we take in rent is £200 short of the mortgage, so this means we're not actually profiting from renting it out and therefore we don't pay tax on the rent. We'll make up the shortfall from Oz.
We didn't tell the mortgage company we planned to rent it. Just take out a residential mortgage, get it all signed sealed. Then contact them a month later saying your circumstances have changed and you'll be letting the house out. They'll charge about £100 for the hassle and then you're cool to go.
Sometimes you have to play them at their own game. After all, our house cost £200k, over the life of the mortgage we'll pay back £450k.
I'm sorry, but what's good for the goose is good for the gander. Screw 'em back!!!
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