Been searching for a definitive answer but cannot find one, so here goes.
My previous home had a mortgage of £140k. I increased this to £240k to allow me to build a new home. With an additional £240k mortgage to purchase the new builds plot. So now have two mortgages of £240k and a tenant moved into my old home this week.
I believe I can claim tax relief on the interest of the now rented home.
However my query is can I claim any relief on the new house's mortgage? Am hoping I could claim relief on £100k taking me back to my original £140k mortgage level. Arguing (somehow) that the funds I invested where to enable me to let the previous house.....
Hope you can see where I am trying to go with this.
Appreciate any input.
My previous home had a mortgage of £140k. I increased this to £240k to allow me to build a new home. With an additional £240k mortgage to purchase the new builds plot. So now have two mortgages of £240k and a tenant moved into my old home this week.
I believe I can claim tax relief on the interest of the now rented home.
However my query is can I claim any relief on the new house's mortgage? Am hoping I could claim relief on £100k taking me back to my original £140k mortgage level. Arguing (somehow) that the funds I invested where to enable me to let the previous house.....
Hope you can see where I am trying to go with this.
Appreciate any input.