The short answer
Arrangement, broker and valuation fees for a buy-to-let mortgage are finance costs. They go in box 44 with your interest and get the basic-rate credit, not a full deduction.
Since Section 24, finance costs on residential lets aren't deducted from profit. They give a tax credit at the basic rate instead.
What you can and can't claim
| You can claim | You can't claim |
|---|---|
| Lender arrangement and product fees | Mortgage capital repayments |
| Broker fees and valuation fees for the mortgage | Fees for a loan used for something other than the rental business |
| Fees for remortgaging an existing buy-to-let loan |
Worked example
A £1,000 product fee goes in box 44. It gives a tax credit of £200 at 20% (£240 from 2027/28), whatever your tax band.
| Tax year | Credit for any taxpayer |
|---|---|
| 2026/27 | £200 |
| 2027/28 | £240 |
Where it goes on your tax return
On the UK property pages (SA105), enter it in box 44 (residential property finance costs). Online, it's the matching question in the property section. Our SA105 helper sorts all your costs into the right boxes.
Repair or improvement: how HMRC decides
A repair restores something to its previous condition, even if modern materials make it a bit better. An improvement adds something new or makes it significantly better, and is capital. Timing also matters from 2027: a cost paid before 6 April 2027 saves tax at 20%/40%/45%, after that at 24%/44%/49%. See all landlord expenses A to Z.
Frequently asked questions
Can I deduct mortgage fees from rental income?
Not as an expense. Like interest, they're finance costs with a basic-rate credit, entered in box 44.
Can I claim the fee if it was added to the loan?
Yes, the fee is a finance cost when incurred; the interest on it is also a finance cost.
Sources
- GOV.UK: Work out your rental income when you let property
- HMRC: UK property notes (SA105 Notes 2025)
- HMRC Property Income Manual: repairs, replacements and allowable costs
Sources last checked 10 November 2026. See all our sources and how we keep pages up to date.