Mortgage against rental income

K

Kildrought

Guest
I've read through the FAQ and many other posts, but I'm still a bit confused (easy done!)

Property A was PPR for c 20 yrs, primary mortgage all but paid off. Raised a further mortgage on the PPR and purchased Property B.

Property B will become PPR and Property A will be rented out.

As the mortgage is on Property A can the interest be set against the rental income? Did this not used to be the case and if it is no longer can anyone tell me when it changed?
 
I've read here before that you can allocate the higher mortgage to the house you have the equity in (remortgage?) to set rental income off against this. I don't know what the situtation is in relation to M.I.R on B, presumably it's allowed. I'm only going on memory maybe somebody with more knowledge would care to comment...I'm considering a simialr situation myself.
 
anyone at all...?

I'm bringing this back up as I'm getting conflicting advice on this one - can anyone give me a definitive answer?
 
Definitive Answer

No it will not be allowed to be offset against rental income

Sorry but it cannot

Only money used to purchase, renovate, construct etc the rental property is allowed

The money boorowed was used to purchase a different property

TRS will be allowed on the mortgage in relation the prop B as it is now (will be) your PPR

Stu
 
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