Remortage on BTL

My current BTL fixed deal on my mortgage is coming to an end. I am trying to decide if I should sell or go to a new fixed deal. I have a possibility to refinance with a private source at the same rate as market but with no penalty early repayment. Would the interest payable to a foreign private source be eligible for 20% mortgage relief and what would be required by HMRC as proof/etc in a an investigation? What documentation would I need to set up?

Hi,

The residence status of a lender does not affect your right to an interest deduction in calculating the profit of your rental business. But where you pay interest to a lender whose usual place of abode is outside the UK, you should normally deduct Income Tax at the basis rate from the payments you make and account for it to HMRC. You can see guidance here:

PIM2064 - Deductions: interest: interest paid abroad

Thank you.