help me asap !!!

[leeandjoanne]

hi , we are letting our flat for a while and going to move back to my mums for 12 - 18 mths so we can save for a deposit for a house as we would like to keep our flat as our pension when were older . my mum is a foster carer but social pays her interest on her mortgage . she says that is we move back in even though we would not be paying her any rent she would have to pay her own interest on her mortgage (endowment) and loose some of her pension ? I dont really understand what she is saying can anyone expleain or help me in this situation

[Jillius]

presumably if you or your fella are working and you are living with your mum then you will be responsible for paying the interest. The social aren't going to want to pay for a house that is occupied by working adults.

[redcrx]

exactly as jillius says, why should the social services pay to put roof over your head? your mum will also lose any council taz discount she may be receiving for low occupancy

At the other end of the move, do you realise that to rent your property out you will have to get permission from your mortgage lender? They may agree it with no trouble OR they may increase your interest rates. Also you will have to notify the insurers that you are not living in the property yourselves.

You may also be liable for tax on any profit you make over and above the mortgage payments.

The best solution may be to get a buy to let mortgage on the property and take out a mortgage that releases any equity the flat carries.

Speak to an independant financial advisor

[flyciderman]

You will also have to pay tax on the rent