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Use of Home Mortgage Interest

My understanding is that mortgage interest is an allowable expense in a Use of Home calculation (but not repayment).

My question arises because interest tends to be weighted at the beginning of the mortgage term so at the start this is likely to be a high figure and at the end a very low one.  Should the mortgage interest applied to calculation simply be the interest element as it shows on the mortgage statement or are we expected to find another way to arrive at the amount of mortgage interest?

With thanks in advance. 


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14th Jun 2012 18:07


You use the interest as it is stated on the mortgage statement.

Do you think the amount is wrong or something?


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14th Jun 2012 18:15

Hard facts

As Peter says, use the figures on the mortgage statement.

In the event its queried its helpful to have the facts available in black and white from the lender rather than showing a fancy interest/capital repayment calculation.

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14th Jun 2012 18:24


Sometimes it's a hassle getting the mortgage interest from lenders because they send the statements for calendar years or 12 months from the anniversary of the mortgage.

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By twj4789
14th Jun 2012 20:54

Source documents
If it is difficult to get hold of the mortgage statements, as long as you can calculate the average interest on the mortgage and clearly demonstrate the apportionment to the business aspect this should be suitable for HMRC.

Often in the absence of accurate records, as long as there is a realistic average, justified with calculations and examples for that particular business that are recent and relevant HMRC usually accept this. Obviously there are exceptions and records should be kept 100% wherever possible and the amount should not show or have the potential for material variance.

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14th Jun 2012 21:06

Many thanks to everyone for a speedy response.

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