Hi all,
I am in the process of purchasing an investment property (3 bed house). I currently own an apartment which I am letting. I also have my PPR.
The apt is worth approx 190k with 80k mortgage. I am releasing 50k equity to purchase the new property. I will then have
Apt:
Mortgage 130k
House:
Mortgage 165k
Am I correct in assuming that I will be able to deduct mortgage interest from both properties from the rental income for the year. ie. can I increase the borrowing on one rental property and then claim mortgage interest on the increase borrowings?
I am in the process of purchasing an investment property (3 bed house). I currently own an apartment which I am letting. I also have my PPR.
The apt is worth approx 190k with 80k mortgage. I am releasing 50k equity to purchase the new property. I will then have
Apt:
Mortgage 130k
House:
Mortgage 165k
Am I correct in assuming that I will be able to deduct mortgage interest from both properties from the rental income for the year. ie. can I increase the borrowing on one rental property and then claim mortgage interest on the increase borrowings?