Mortgage interest tax credit for residential mortgage with consent to let

MGCP88

silvercar said:

MGCP88 said:

silvercar said:

MGCP88 said:

Hello,

My wife and I have a residential repayment mortgage (not buy-to-let) for the flat we had lived in for the last few years. We have now got consent to let whilst we are away travelling for eighteen months.

I'm completing my self-assessment tax return. Does anyone know if we are eligible for mortgage interest tax relief (20% tax credit)? 

Most websites seem to talk about it with respect to buy-to-let mortgages, but I can't see anywhere explicitly saying one way or another whether we are eligible.

Thank you.

Yes. There is no obligation to have the borrowing as a designated BTL mortgage, in fact there is no obligation to have the borrowing as a mortgage at all, it could be a personal loan or any other sort of borrowing. It is the purpose the loan that counts, not where, if or how it is secured.

Thank you, this is very helpful.

I suppose I was wondering if the initial purpose of the loan (which was for me to live there on a residential mortgage when I bought the flat a few years ago) counted, but now that I've moved out and I'm renting I would argue that the current purpose of the loan is to enable me to rent. Without the renting we would have to sell up. Is this the right way of looking at it, that it is the current purpose of the loan that counts?

Yes, current purpose is to keep the mortgage going as a cost of renting the property.

Thank you, this is very helpful! Much appreciated.

sheramber

The tax year starts on 6 th April each year, so starting on 6th April 20223   would be 23/24 despite being before 7aPRIL.