Residential Mortgage or Buy to Let (What can I do)?

Hi everyone,

We intend to move house soon and the house we are moving from we are going to rent out. On top of this I also have another house which I rent out. Both of these houses have next to nothing to pay mortgage wise.

With the deposit and what we can raise from the other house(s) we hope to pay off the house we are moving into.

My question is can we get a Residential mortgage and use the interest on that mortgage at the end of the tax year against our tax return or do I have to get 2 x Buy to Let mortgages to be able to do this.

Now I have taken advice from a couple of quarters and it appears that it is a grey area with regards to getting a Residential mortgage and claiming back the interest on it each year. Some say it can be done and by all accounts a lot of people do it, but some say it is not exactly legal as the Underwriters may have something to say on it.

I know it is only a brief explanation of my predicament, but just wondering if anyone can tell me exactly what is right and what is wrong. I want to do the right thing within the boundaries of the law.

Appreciate any advice.
Regards
MTK