Tax allowances on 2nd property mortgage

Werdnal

Hubby and I were both made redundant 10 years ago, and used our pay-outs to buy a small studio flat which we let out. Since then we have managed to pay off our mortgage on our own property and have now put the flat on the market, with a view to moving up to a larger 2nd property, to improve our letting potential/income, and will need to borrow around £20/25K to do this.

As we see it we have 2 options - borrow against the buy-to-let property, but we have been advised that this type of mortgage carries additional conditions (classed as a higher risk having tenants), OR borrow against our own property (higher value so lower risk borrowing). However, as we understand there are tax allowances for mortgages for 2nd properties, would we be entitled to claim the mortgage as an expense of running the 2nd property, if we didn't actually borrow the money against it.

Anyone advise please?

Thanks

phlash

See here

https://forums.moneysavingexpert.com/discussion/378750

It has the answers you need.