Can I offsite interest against rent if I move out of my home (no mortgage) and raise a Buy2Let mortgage on it?

We are looking at moving, and are wondering whether to keep our current house, get a buy to let mortgage on it and rent it out, rather than sell it.

The idea would be to keep it for 2-3 years to take advantage of the capital gains tax exemption (assuming any further property value increase) for the three years following moving out and then sell it.

The question is around interest offset against rental income. We currently have no mortgage on the current property. Is there any way we can raise a buy to let mortgage on it (effectively to release the cash needed for the deposit, etc. on the new place) and offset mortgage interest against the rental income to reduce the income tax bill?

If you are in the UK, you would not be able to off set the mortgage interest against the rental income as the mortgage will not have been used to buy the property which is being rented out.
Maybe you are not in the UK as you are talking about a 2-3 yr CGT exemption which I do not understand.

I assume you are talking about the Sole Main Residence exemption on property which was at some time your SMR (Last three years of occupation).
I remember reading about a scheme which made the interest allowable. I'll get back to you......

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