Claiming of interest payments
An article in the Daily Telegraph dated 8th April 2008 states that you can remortgage your buy-to-let (if you have scope to) and use that extra money to pay off the mortgage on your primary residance. It then states 'This way, you'll get more relief and have less to pay on your main property'. I interpret this as being able to claim the tax relief on extra interest payments on your buy-to-let.
Is this correct, that you can set off the extra interest payments against tax on a buy-to-let even though it is being used against your primary residence. My understanding was that you can only offset extra borrowing if it is used against another buy-to-let not your primary residence.
Could you please clarify. Thank you.
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