accidental landlord tax query

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Ket1
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On my tax return for my rental property is it possible to deduct a proportion of the interest on my residential mortgage as this was taken out to fund the buy to let property?
From various research I understand that the interest for almost any loan can be offset against tax as long as the purpose of the loan was to fund the rental property. Here is the full back ground.
We bought a house back in 1994 for 70K, as the value increased we upped the mortgage to fund investments to 150K. In 2009 we decided to move and buy a larger house. The original house was valued at 400K and we agreed a sale at 375K so we could move quickly. The proceeds from this sale (225K) were due to fund the purchase of our new home. At the last minute the buyer pulled out leaving us with a 225K shortfall to buy our new home. We decided to rent our original property out and plug the shortfall by taking out a buy to let mortgage out for 75% ltv at 275K and increase the residential mortgage we were taking out on our new home by 100K; The total loan of 375K covered the origin 150K mortgage and 225K shortfall. For the last 5 years on our tax returns we have been offsetting the interest on the buy to let mortgage of 275K but I suspect we could have also been claiming the 100K proportion of the interest on the residential mortgage that enabled us to keep the rental property.
Please can you confirm we can get a tax deduction for the extended proportion of our residential mortgage that enabled us to keep our original property and rent it out?
21/01/2015 07:02

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