Lay My Hat

We are exploring the idea of buying a holiday let property and have a couple of basic financial questions:

Is the interest on the mortgage still a fully deductible expense?

If yes does the government have any current plans to change this?

It makes sense for us to raise the mortgage required on our main house, rather than the holiday let, so we would in effect be cash buyers. Can we still claim the mortgage interest on the loan as an allowable expense? I read on the web somewhere that HMRC doesn't care where the loan/finance was obtained?

Thanks for any help.

You can claim interest on commercial lets which includes furnished holiday lets. I would be amazed if any government took it away as it would effect a hell of a lot of businesses.

I also believe that it doesn't matter how you secure your loan (I.e. By using your own house) as long as the value of the loan does not exceed the original purchase price.

Obviously you should take this advice from your accountant and consider other things like should you purchase through a limited co?

When we were looking at our place we couldn't get a normal mortgage on it. They would only do it on a commercial basis which was more hassle.

I part-financed my holiday home by increasing the mortgage on my main property. As long as you can readily distinguish the "old" and "new" parts, there shouldn't be any difficulty. Your accountant will advise how best to proceed with this in mind.

Mols