Credit Union loan -qualify for tax relief

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Paddylast

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Hi,
I am looking at borrowing 75,000 from the credit union to fund my son's training. If I do so can I claim tax relief in the same way as a mortgage or would I be better topping up my mortgage instead. If this is the right route has anyone taken out the NIB LTV mortgage. Looks like the most competitive at the moment. I'm with PTSB but I've no problem moving. Any advice appreciated.
 
You can only claim tax relief on the portion of your mortgage that is used for home improvement AFAIK.

You can claim tax relief on fees paid at your marginal rate, but only if is an approved course/college.

If you have to borrow €75,000, you are almost certainly better remortgaging (without tax relief)-but the cost will still be quite high in absolute terms.

I hope he appreciates you!
 
Thank you CCOVICH. appreciate your reply.
Yeah, I believe he does appreciate this. He didn't ask, we offered and he (hopefully) will be in a position to take over the loan within 2 yrs - at least that's the agreement. He has already saved quite a bit while working for the last 18mths.so he hopes to put that towards the fees.

Have looked at Ulster bank rates and NIB for LTV mortgage and it appears NIB is a lot cheaper. If I go with Ulster I'm locked in for 5 yrs whereas there is no such restriction with NIB. However, I think they insist on you opening a current account. Are there any catches in this new NIB mortgage that are not obvious?

By the way, one bank told me I could apply for a top up mortgage for "building an extension" and that I didn't have to declare what I spent the money on!
 
There's a separate thread on the NIB LTV mortgage that you should read. From what I can gather, anyway, it's not going to suit you because they don't allow you to get a top-up - you are just allowed transfer the mortgage value you already have. So the only way around this is if you got the top-up with PTSB, then transfer the total amount to NIB.
 
Paddylast said:
By the way, one bank told me I could apply for a top up mortgage for "building an extension" and that I didn't have to declare what I spent the money on!
Click to expand...

That's fine from the bank's point if view, but you cannot claim TRS on the interest paid on such borrowings.
 
Thanks for the replies. I'll take a look at that NIB thread. Hope to contact NIB today and will post if anything different turns up.
 
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