Jun, 2017


Results 1 to 3 of 3
  1. #1

    Default Mortgage Interest - off setting against rental income


    I own a rental property which has no mortgage on it. I want to re-mortgage this property in order to raise funds to purchase a residential property for me to live in as my sole residence.

    Am I able to offset the mortgage interest against rental income despite using funds borrowed going toward another property purchase?

    Many thanks in advance for any advice received?


  2. #2
    Join Date
    Apr 2012


    Hi Jess,

    Yes it is possible to claim tax relief. If you show that your intention with the new borrowing is to 'extract capital from the rental business'.

    The way to look at it is you are replacing capital in the rental propety with borrowing. This effectively extracts the capital and then it is this capital fund you are using to purchase a new residential property.

    It doesn't matter when you actually spend this released capital as the borrowing now sits against the rental

  3. #3


    Thank you very much for your help! I really appreciate you taking the time to respond.

Similar Threads

  1. Offset mortgage interest against rental income
    By bwag in forum Tax Questions
    Replies: 2
    Last Post: 20-04-2010, 10:05 AM
  2. Offsetting mortgage interest against rental income
    By philbatch in forum Tax Questions
    Replies: 6
    Last Post: 01-04-2009, 17:05 PM
  3. Replies: 4
    Last Post: 19-08-2008, 11:59 AM
  4. Replies: 8
    Last Post: 31-07-2008, 07:43 AM
  5. Mortgage interest exceeds rental income
    By funkygoddess in forum Tax Questions
    Replies: 2
    Last Post: 22-09-2005, 23:54 PM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts