I’ll be letting a property for 2.5 years whilst abroad. Currently I have a residential mortgage, and I’ve received authorisation from the bank to keep the same type of mortgage even though I’ll be letting the property as I’m planning to return to live in it.
Most landlords have a buy-to-let interest only mortgage, which is what is currently used for the tax credit calculation, but I’m not sure how I’d calculate the interest element of my capital repayments. Should I just apply the interest percentage on the total capital repayment amount? I don’t think I can claim tax credits for all the capital repayments in my case…
I get my mortgage statement the last week in January which isn’t very helpful for my tax return. It’s easy enough to work out the monthly reductions in interest payments from the previous year as long as the interest rate has stayed the same.
Thanks - I can’t see the interest specified anywhere, but the bank was happy to send me a full breakdown with the interest calculation for the whole tax year. Saves me from doing the math
