Releasing Equity in a Rental Property to fund a PPR

T

Teeley

Registered User
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I'd appreciate some advice please!
I've just sold my PPR and plan to soon buy another. I have large savings and profit from the sale. As it is I will probably need a mortgage of approx €300k for new PPR. I also have a rental property valued at approx €300k with a remaining mortgage of €60k.
If I remortgage the rental property (increase by €150k approx) can I use the new mortgage interest against my rental income tax?
If I remortgage will I be forced to take an investors interest rate on the new mortgage on the rental?
 
No you can't offset the interest on the portion of the mortgage that is for the PPR against the tax on the rental, it is the purpose of the money that determines whether it is eligible for tax relief, to get it the money would have to be for the rental.
 
As you've alluded to yourself, the rate on the rental property would be higher than the rate on the home mortgage...best to borrow against the PPR, no?
 
Monbretia..thanks for the reply. I didn't realise the purpose determines whether or not it is eligible for tax relief. That was the main reason that I was considering remortgaging..thanks again.
 
Gordon Gekko..thanks for the reply. Agree with you now that I know that I know the interest from the remortgaged rental isn't eligible for tax relief. Probably didn't make sense long term anyway..I hadn't worked out the figures. Just wondering if it was an option or not. Thanks.
 
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