Self Assesment - "Interest" figure of repayment mortgage

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    Self Assesment - "Interest" figure of repayment mortgage

    Hi,

    I'm looking at renting my flat starting sometime over the next few months ... I've been looking at self assessments and tax (trying to get my head around it).

    Quick question on what figure to give as the "interest" portion of a repayment mortgage.

    Obviously when filling in your self assessment your allowance includes the mortgage interest which has been paid over the year ...

    As the mortgage interest is calculated on an ongoing basis and is 'compound interest' it's hard to know what set figure to say you pay monthly or over the full year.

    What's the best/usual way of working out exactly how much you have paid in interest over the year?

    If I'm missing something obvious here or barking up the wrong tree please say

    Thanks!

    #2
    Your lender should be able to tell you how much principle and how much interest you've paid shouldn't they?

    Alternatively I guess you could plug your figures into this calculator:

    http://www.searchlawrence.com/mortga...4.5&months=300

    Comment


      #3
      Contact your mortgage company and ask them to send you a "Statememt of Debit Interest" for the relevant tax year.

      My bank sends me a statement at the end of every tax year.

      Comment


        #4
        Thanks, that calculator is quite useful.

        I also over pay, ad-hoc, so that makes it more messy. I guess the best way would be to phone your lender and ask them to give you exact figure paid in interest between two dates.

        Comment


          #5
          Ask them to confirm in writing - in case HMRC want proof
          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

          Comment

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