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You will probably pay more tax as you have less interest to deduct on your BTL. However, this exemption is being phased out anyway so you might not care.
This is correct. I don't care and I don't see myself getting years more income from it. Basically I'm very keen to shift it. I just can't do that until Feb 2018 when the current AST expires.
Other point is that now all of your debt is recourse to your home, meaning if things go tits up you are properly shafted.
This is correct. If all goes to plan we will have the funds to repay the mortgage should someone put a gun to our heads.
Also, what will you do with proceeds of BTL sale? You will likely have ERCs on your new resi mortgage if it's a 5y fix.
The proceeds we'll save / invest as we see fit, but will keep a sizable amount liquid enough that should we want to move we can access it. The new mortgage will be portable so we in theory at least could move it to a new property.
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Howard
You will probably pay more tax as you have less interest to deduct on your BTL. However, this exemption is being phased out anyway so you might not care.
Other point is that now all of your debt is recourse to your home, meaning if things go tits up you are properly shafted.
Also, what will you do with proceeds of BTL sale? You will likely have ERCs on your new resi mortgage if it's a 5y fix.