I'm considering buying another house in an area not reasonably commutable to Dublin, but would like to rent my existing family home in Dublin and use that to cover the cost of the mortgage. The mortgage is about €1600/month and the rent in the area for a 4bed in Dublin is in the €2.5k to €3k range.
I've tried to get a 2nd mortgage with UB but they won't accept the rental income as a means to pay of the mortgage on that property. The person who done the application said the policy is
"Potential/Projected rental income must not be included when a customer is retaining their existing PDH as a potential BTL"
As a result I don't qualify for enough to allow me to buy or build the type of house I would like.
Have a few questions here.
1) What banks will allow rental income to be accepted as an income pay the mortgage on the rental property?
2) If I was to fix my existing family home with Avant now for 7 years at 1.95% or even longer at a higher rate, would this cause me any issues with getting a homeowner rate with a different bank on the new home?
3) Let's say I remortgage my own home with Avant, have €310k outstanding, home value is in the €650-700k range, I'd be paying €1306/month over a 25 year term. The interest in the first year is about €6k, let's say I get €2,500/month or €30k a year in rent. When it comes to paying the tax-man, do I pay 40% tax on the €30k or can you get mortgage interest relief and just pay 40% tax on the €24k? Is it just 40% you pay, as in you don't pay USC or other taxes?
I've tried to get a 2nd mortgage with UB but they won't accept the rental income as a means to pay of the mortgage on that property. The person who done the application said the policy is
"Potential/Projected rental income must not be included when a customer is retaining their existing PDH as a potential BTL"
As a result I don't qualify for enough to allow me to buy or build the type of house I would like.
Have a few questions here.
1) What banks will allow rental income to be accepted as an income pay the mortgage on the rental property?
2) If I was to fix my existing family home with Avant now for 7 years at 1.95% or even longer at a higher rate, would this cause me any issues with getting a homeowner rate with a different bank on the new home?
3) Let's say I remortgage my own home with Avant, have €310k outstanding, home value is in the €650-700k range, I'd be paying €1306/month over a 25 year term. The interest in the first year is about €6k, let's say I get €2,500/month or €30k a year in rent. When it comes to paying the tax-man, do I pay 40% tax on the €30k or can you get mortgage interest relief and just pay 40% tax on the €24k? Is it just 40% you pay, as in you don't pay USC or other taxes?