Claiming tax relief on interest of BTL

[unhappydisgustingWOW]

If a BTL property was partly financed with a personal loan, rather than a mortgage, can tax relief still be claimed for the interest paid on the loan?

[subjecttocontract]

Yes you can.

[Phlash]

It is the purpose of the loan that is important.

[unhappydisgustingWOW]

It is the purpose of the loan that is important.

You mean I may need to prove that the loan was actually used as part of the purchase if investigated? (via bank statements, etc?)

How important in this case is the original 'reason for loan' that lenders require (as part of the application form). Would that be taken into consideration by the Tax people?

[Telometer]

It's all helpful evidence. If, of course, you lied to your mortgage company and said the loan was for a holiday - yet you spent the money on the property, well it does not alter the fact of the case that the cash was borrowed in order to buy the property.

(Why banks will happily lend you money for a holiday, but not to buy a property, I do not know.