Let to Buy

[Trueblue]

Apologies if this subject has been dealt with in a previous thread.

I remortgaged my main residence to finance three buy to let properties and I have been claiming the appropriate tax relief for the terms of the mortgages.

I am in the process of purchasing a new main residence and I intend to sell my existing main residence. Can I continue to offset the appropriate mortgage interest against the rental income for the 3 btl properties for the remainder of the term of the respective mortgages.

Alternatively, is it better to let my existing main residence to fund the purchase of the new main residence and offet all the mortgage interest against the rental income.

[TaxationPete]

You can continue to offset the interest that is related to the 3 B2L's. I do not see how letting you main residence is going to 'Purchase' your new residence unless the total rental profit exceeds the mortgage on the new property. Regards Peter

[Trueblue]

Hi,

Just a bit of clarity about how you continue to offset interest against related B2Ls. I sold my former house which funded my 3 BT2ls. The mortgage on my new house is larger than the former house. If original deposit raised from original home was 20,000 for each BTL and my mortgage on original home was 200,000. If new mortgage is 350,000 can I continue to calculate a proportion of the 20,000 per B2L on the new mortgage of 350,000.

Thanks