This was part house mortgage (where we live) and part buy-to-let (apartment). We were advised that, for tax reasons on the rental income of the apartment, we should have part of the mortgage set against the apartment. The split was roughly €200k/€100k. The mortgages are SVR.
I'm asking this because, with 10 years to run, we don't owe AIB €150k (half of what we borrowed, after half the term) we owe them €195k.
the piece of the puzzle you are missing is that you pay the same amount back every month of the mortgage. It is the portion of this amount that changes between interest and capital. Another way of looking at it is if your bank said that you would pay the capital in equal parts over the life of the loan, so that you owed half of the capital after half the time, you would pay very large monthly repayments at the start of the loan.
Am just left wondering why I can't avail of LTV a second time.
Ten years ago, we borrowed €300k from AIB to be repaid over 20 years.
This was part house mortgage (where we live) and part buy-to-let (apartment). We were advised that, for tax reasons on the rental income of the apartment, we should have part of the mortgage set against the apartment. The split was roughly €200k/€100k. The mortgages are SVR.
AIB allows customers on SVRs to switch to an LTV rate.
They don't allow customers on 90% LTV to switch to a 50% LtV rate.
EBS don't allow either.
Presumably to protect their profits?
Brendan
Let's be absolutely clear here so that you don't end up with a massive tax bill and penalties.
If you borrowed money to buy a house which you subsequently let, it's ok to claim tax relief on that interest.
If you borrowed money to buy your home, which is secured on a buy to let, then you cannot claim tax relief.
Brendan
2. If we're not on any LTV rate, why can't we move to the 3.85% one?
Hi Dinarius
AIB makes the rules not I. They don't allow it. End of story.
UB is the only lender which officially allows it.
Brendan
We used to live in the apartment. When we moved to the house, we were told that we should leave the mortgage we had on it for tax reasons. i.e. rental income.
Now you've totally lost me.
When did you buy the apartment, when did you buy the house. How did you fund each purchase.
(I understand the tax advantage of leaving a mortgage on that apartment that you subsequently let)
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