Thank you for your question.
Firstly, your understanding is correct, you may claim interest paid on a mortgage at the restricted rate of basic rate, so in your case, 20% of the £7,668.00, which you have stated totals £1533.60.
The information inputted into your Tax Return will determine how much relief is given against any property income profits for that given year.
It appears in your case that a large enough profit was not made during the 2022/2023 tax year to use said relief against, for example a loss has been made.
I would advise that you would have to carry forward the unused finance costs to a future year.
The following link gives further information when no tax reduction will be given or it is reduced.
Tax relief for residential landlords: how it's worked out
If you think your calculation should have included a tax reduction in respect of your finance charges then please phone us to discuss.
Self Assessment: general enquiries