Person A resides in Property 1 - main residence. Decides he needs a bigger property so remortgages property 1 to purchase property 2. He then moves into property 2 as his main residence.
He then rents out property 1.
Dilemma is, is the mortgage interest on the re-mortgage allowable against the rental income for property 1, even though it was used solely to purchase his new main residence?
Can anyone help?