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Post Info TOPIC: Can you claim the mortgage interest (re-mortgaged) on property that you let
rachel_mclean


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Can you claim the mortgage interest (re-mortgaged) on property that you let
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Hi, another question (sorry)

 

I have a client who has been letting out her property for years, when she originally bought the property she bought it outright with no mortgage.

 

She has now re-mortgaged and it's a buy to let mortgage - it's not for the whole house just for £25K plus interest.

Is the mortgage interest now a claimable expense? it's an interest only mortgage so the capital amount is still owed at the end of the payment period.

Can all the fees paid to get this mortgage also be claimed? i.e. mortgage broker fee and mortgage fee from mortgage provider?

 

Thanks in advance for any help on this

Rachel

 Sorry, this was not called a re-mortgage, just a mortgage as there has never been a mortgage.



-- Edited by rachel_mclean on Wednesday 31st of August 2016 08:07:52 PM

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Rachel
Cheshire


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Hi Rachel
Just to clarify....so the house value when she bought it was more than the loan she has now taken out? If so, then yes as far as I understand it, although the relief she gets is changing so it will be on a reducing basis over the next four years, from 2017 as the marginal relief will disappear. Worth a read up, as a few changes affecting the buy to let market in the last finance act have meant a few a scurrying round to try to find a different way round such changes.

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
BudgetB


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Surely the reason for which she has now taken out the mortgage, given that the property has been rented for sometime, has nothing to do with the letting business and so the interest would not be allowable?

Assuming of course that the mortgage wasn't to redo the kitchen etc.

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Jenny

 

Responses are my opinion based on the information provided.  All information should be thoroughly checked before being relied on.

 
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