Mr X owns a Buy To Let property which has some equity. He takes a further advance on the mortgage on this property(Mortgage A) to finance the deposit of another Buy to Let property(also with a mortgage "B"). Can the additional interest on Mortgage A be offset against either of the properties' rents? Can the costs of the further advance(valuation fee, arrangement fee etc) be offset against either of the rents?
Thanks
David
David Cee
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Yes, and no
Whether loan interest is not allowable on property is down to whether the balance sheet for the property business is overdrawn or not. It doesn't matter what the loan is secured on.