Loan with family
In the next few months my parents are selling their house and they will have sufficient spare cash which I am considering borrowing to pay off my mortgage in full. My current BTL mortgage is on a standard variable rate and so can be switched at any time.
I will then pay my parents a market rate of interest as if I had taken out a bank mortgage.
My question is: Am I able to continue offsetting the interest payments for the loan with my parents against my rental income? Further, if I want to borrow some more money (related to the property) from my parents and pay them interest, can I include this in the return)?
My parents will obviously need to disclose this in their tax return.
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