Mortgage on 2nd Investment Property

[kiely_s]

I am trying to arrange Finance for a 2nd investment property. I have been told that there is no lender that will raise 100% for an investment property on a stand alone basis. Can you let me know what is the tax implications of remortgaging property1 and using the equity get 80% mortgage on property2? Would I be entitled to claim full tax relief on interest paid on both mortgages, even though I have released equity from property 1 to buy property 2?

 

[ClubMan]

What the money is used for rather than what property or other asset it's secured on is what matters in terms of whether or not you can offset interest against rental income. For example interest on finance secured against (PPR or investment) property A but used to purchase/renovate investment property B can be offset against rental income from property B. If in doubt get professional advice.