tax relief on mortgage for rental property

lizzyluck

I am about to buy an investment property as buy to let. I know that if I get a BTL mortgage I can write the interest off against tax but someone has told me I can do the same if I get the mortgage on my own house. Does anyone know if this is the case as I could get a better mortgage rate this way?

00ec25

correct

you can take a loan against your own residential property provided:
a) there is a clear audit trail showing that the borrowed money was then spent on the rental business; and
b) you cannot borrow more than the open market value of the rental property valued at the date the rental property started.