Serious landlords are always looking for deals, especially in the current market
When one comes their way, it is sometimes not feasible to apply for finance. This is because the administration and paperwork will take too long, and this is likely to result in the investor losing out on the deal.
In such scenarios the landlord will end up buying the property using their cash reserves, and they will then re-mortgage the property to release the invested funds.
The question then arises as to whether the interest charged on the re-mortgage is tax deductible.
In Arthur Weller’s opinion, the mortgage interest is tax deductible in such scenarios. This is because the property was bought with the intention to take out the mortgage soon afterward.
