Reduction of BTL mortgage from Main residence morgtgage

[LT26]

Hi
I have a flexible mortgage on my current main residence with a draw down facility. I bought this house prior to selling my previous main res. I reduced the flexi mortgage to almost nothing with the sale of my previous main res. I then drew down excess funds and paid off BTL mortgages - 3 actually. The drawdown was done over the phone and monies transferred into a current account then subsequently into the BTL mortgages. AS the money was drawn down to pay off BTL mortgages I thought I was still entitled to tax relief. I realise this is less than straight forward. Any advice would be very much appreciated.

[TaxationPete]

What was the 'declared' purpose of the draw down. What paper tiral do you have. Regards Peter

[LT26]

What was the 'declared' purpose of the draw down. What paper tiral do you have. Regards Peter

There is no declared purpose on paper as the limit for the mortgage is set at the beginning. It literally is just a case of calling and having the money transferred. The only paper trail I have is taking the money from Main Res mortgage and paying into BTL mortgage.

I thought it was a transfer of loan and therefore still allowable.

I would appreciate your thoughts.

[Telometer]

I don't really see much of a problem. It is hard to argue otherwise than that the loan was wholly and exclusively for the purposes of the lettings business.

The paper trail is quite clear; it is a refinancing of a BTL business - albeit on a loan secured against a private asset.

Under no circumstances would you have drawn down this loan without the requirement for financing for your BTL business.

[TaxationPete]

I agree, as long as there is a paper trail and the withdrawal and deposit are clearly shown then all iw well. I asked about the purpose of the drawdown as some providers ask and it is just another part of a trail if HMRC ask about it. Just keep the records. Regards Peter

[LT26]

I agree, as long as there is a paper trail and the withdrawal and deposit are clearly shown then all iw well. I asked about the purpose of the drawdown as some providers ask and it is just another part of a trail if HMRC ask about it. Just keep the records. Regards Peter

Thanks very much for your help. HMRC has accepted the paperwork but it has been a bit of a long drawn out process. Lesson learned. Keep things simple !

Thanks also to Telometer too.