Mortgage Loan Interest after Remortgaging the original loan

[peterd67]

I have a £50k interest only mtg on a property that used to be my main residence that has been rented out for the last 3 years. I also have a £100k repayment mtg on my main residence. A mortgage adviser recently told me that I could re-mortgage my main residence, borrowing £150k onto a split mtg at a discounted rate of 4.75% and use the extra £50k to pay off the mortgage on the rented property which is at 6.69%. He said that I could still claim the loan interest on the £50k element of the new mortgage as an expense although it is now secured on my main residence rather than the rented property.

I am wondering if the interest on the £50k element of the new mortgage can still be claimed as an expense against my rent?

[Lambs]

Yes, you are entitled to re-mortgage your property and still to claim interest relief, in respect of the amount of the original loan. It shouldn't matter, against which property the loan is secured.

You are right to claim interest on only that proportion of the new mortgage which relates to the former loan in respect of the let property.