Mr Curious
Registered User
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- 4
I'm not sure this is correct. Which seems to be the driver behind all this.The additional benefit is that the mortgage interest can be offset against the rental income of the other rooms I plan to rent out when we are not living there.
If I got this right, you're looking to clear the mortgage on the house outside Dublin now. In the near future, you will both move into the Dublin property and rent out the house outside Dublin. With no mortgage on the house outside Dublin, you cannot claim interest relief there.
After ~5 years, you propose moving out of Dublin and into the other house. At that point you will still have an outstanding mortgage on the Dublin property and can then avail of interest relief, but that's dependent on such reliefs still being available at the time.
Note that after the ~5 years, if you keep a room in the Dublin property to stay in mid-week after moving to the house outside Dublin, you are likely not eligible for any interest relief.
Would you not be better off retaining a mortgage on the property you plan to rent for the foreseeable future so that you can claim the relief? You seem to be going about this in a manner that would eliminate any option for ever claiming interest relief.
It's not really something the banks are actively looking to do. However, they don't have a specific policy against it as far as I'm aware.I guess my question more broadly, for whatever purpose, is that if I move mortgage provider to another bank, is there one that would be willing to let me use the equity in the Dublin property to clear the second mortgage?
They used to. Called the Celtic Tiger equity release, I know one person did it three times.If banks were open to it, everyone in the country with a holiday home mortgage should be doing it.
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