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Buy To Let's
jayencee
Posts: 133 Forumite
I've got a BTL mortgage of £50k against a property value of £150k. If I were to re-mortgage this property to release another £50k of equity which I then use as a deposit for a second BTL, am I right in thinking that I can only offset the interest part of the original £54k on property 1 when self assessing, but that I can the offset the £50k plus the new interest mortgage amount against property 2, even though the borrowing is against property 1?
Hope that makes sense!
Hope that makes sense!
0
Comments
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Provided both properties are in the UK (possible EU) then you would lump them together on your tax return.
The general principle is that you can consider the interest on a mortgage to be an allowable expense, up to the value of the property when first let.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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