Are mortgage arrangement fees off-settable against tax?

Are mortgage arrangement fees off-settable against tax?

10:44 AM, 13th August 2014, About 9 years ago 24

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Are mortgage arrangement fees off-settable against tax?

I was inspired to ask this question based on the article that Mark Alexander wrote this morning about one very arrogant member thinks he who knows it all. The article was entitled “Naive Question From Landlords” [link]

Perhaps he can enlighten me?

The most recent arrangement fee quoted to me for an interest only BTL mortgage was at the top end of the range – £4,000 for a £160,000 mortgage.

I know that interest is off-settable against rental profits but what about arrangement fees?

Many thanks

Ian


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Comments

CristinaB

15:49 PM, 6th April 2020, About 3 years ago

Thank you Mark, super clear

CristinaB

8:52 AM, 7th April 2020, About 3 years ago

Reply to the comment left by Mark Alexander at 07/04/2020 - 03:45
Thank you, very useful. Can I assume if I build the remortgage fee in the mortgage total value (interest only), then I will claim as tax relief the 20% as an overall (including the fee)?

Mark Alexander - Founder of Property118

12:56 PM, 7th April 2020, About 3 years ago

Reply to the comment left by CristinaB at 07/04/2020 - 08:52
The 20% tax credit is applied to both the interest and the fee.

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