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  • Tax

    Put brother on mortgages???

    Hi,

    Can I put my brother on my buy to let mortgages so we can split the profit?

    I am a higher rate tax payer - he is not, but I've checked with my mortgage guy and my bro meets all criteria to be on mortgage.

    Can this be done to save tax? Or is it only a husband/wife deal to save tax.

    cheers.

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    Can I preface my comment with the fact that you need to take some professional advice on this before proceeding.

    My understanding is that when considering how the profits are split for tax purposes HMRC are not interested in who's name is on the mortgage, HMRC will look at who owns the property, ie the entry on the Land Registry for your property title. Introducing somebody else as the joint owner of a property requires some serious thought and very professional advice.

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    Your brother would not just be splitting profits, but he would also be taking on the whole debt with you in a joint and severally liable arrangement.  This may also affect his borrowing ability in the future.

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    If you need a remortgage then it can be done. Though there may be tax considerations since you are selling part of the property to your brother, taking on the debt (and your credit reports will be linked).

    This sounds like a discussion  you should have with your accountant - perhaps mention to him declaration of trust also.

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    Looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance. The above is not financial advice, its me rambling - just passing time on a coffee break.