I have nearly bought an old property and need to stay in my existing house until it is ready to live in. I had to borrow to have enough funds to do work. The idea is I pay it all off when I sell current property. However, I now have 2 mortgages and claim tax relief on the smaller mortgage. Can I add the 2 together and then claim maximum relief or change the tax relief to the larger one and get the most benefit?
Ah Principal Private Residence(PPR). I am living in the house with the smaller mortgage until the other house is ready so that means PPR is the smaller. But as I intend to make that the PPR can I switch and denote it PPR even though I may have to sleep elsewhere for a while? Why did I ever start this adventure.
Can I just pay off the smaller mortgage and then claim on the larger?