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  • Mortgages & Finance

    Investing rents received in the company...

    I have rent rolling up in my company from buy to let properties and am looking to remortgage. I'm tempted to invest the rent short-term into peer to peer loans via Funding Circle and the like.

    Would this cause me issues in getting a mortgage down the line? Since I understand the company should be "clean" and only used for property investment purposes. But at the same time, we must be able to invest the rents rather than leave cash sitting there!!!...

    Any insights / thoughts appreciated!

    Cheers

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    It's an interesting question, I would hazard a guess that it would not. Whilst you have a risk of losing all your money, in such investments. The issue for lenders is things coming to bite you, such as claims from suppliers or creditors calling on you.

    Its you putting your companies savings to good use, not dissimilar to putting in a savings account but with higher risk.

    Have you compared the returns from Funding Circle compared to savings from Paying Down your mortgage (on remortgage).

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    _________________________________________________________________________


    The above post is not financial advice, its often me rambling - passing time on a coffee break.
    If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance.


    _________________________________________________________________________


    Thanks. Can definitely make more money investing than paying down debt, and anyway the hassle of getting more debt makes it doubly worth it, what with the brokers, for-filling etc etc.... Might as well maintain the leverage whilst prices are still high....

    As long as I maintain a bit in there then should be

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    Talk to your accountant about tax free dividends to a holding company which can then in turn invest in anything you like - they'll explain further.

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