Combining two mortgages

F

Fintobelli

Guest
HI, I have moved from Dublin in the last few years and have purchased a new house while being able to manage the repayments on first house in Dublin. My question is whether I can now combine the 2 mortgages.
I would like to put all of the 'new' mortgage on the Dublin property, as I am now renting it.
There are 12yrs left on the Dublin mortgage and 18 on present.
Any help appreciated.
 
Why are you looking to put all of the mortgage on the Dublin property? For tax purposes you can only offset the interest on monies used to "buy improve or renovate" the investment property against the rental income so there's no advantage there. If you could post with the values of both properties, the outstanding mortgage balances and your earned and rental income I could advise you further.

Sarah

www.rea.ie
 
Yes, but also some of the interest on the mortgage can be written off against the rental income.
 
Ignore previous.

Value approx: Dublin €350,000 outstanding €58,000
Here, 350,000 - outstanding 128,000

I am only looking for a rework in order to offset as mmuch of the mortgage interest against rent as possible.

Finto
 
You can only offset the interest on the original €58,000; none of the €128,000 can be offset because it was used to purchase your main residence - not the investment property.

Sarah

www.rea.ie
 
Thanks Sarah,

is there any advantage to having one mortgage at all then? Or is it better to leave them as is.?
 
No advantage, unless you can negotiate a better rate on the whole lot. For example you could remortgage with Ulster Bank's free switcher service and secure the entire amount against your main residence at 3.2% (ECB + 0.95% for the life of the mortgage) and you could still offset the interest on €58,000 against the rent even though the mortgage is not secured against the investment property. NIB also offer a tracker rate of ECB + 0.79% but don't cover the fees (or not all of them - I think they pay €600 towards them).

Sarah

www.rea.ie
 
Thanks again Sarah, it has all been prompted by the UB switcher info.
Will leave good enough alone 'til new year.

F
 
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