Interest only mortgages for invstment property

[modestus]

It seems that for an investment prooperty the greatest efficiency lies in paying an intrest only mortgage as you cannot sell the property for 10 years and the higher the interest repayments the more you claim for income tax purposes while preseving and lengthening the tax allowance against rental income under the Section 23 property.
Obviously this means a larger capital repayment when the 10 year period of the Section property is at and end.Is my understanding correct here ?

 

[ClubMan]

Have you seen this topic?

 

[modestus]

Thanks for that Clubman-I opted for capital repayment mortgage on the nvestment property-I will change to intrest only now -does that mean that I haved lost the benefit of the tax write off forever or can I now claw some of it back?

 

[Brendan Burgess]

Hi modestus

You can continue to claim the interest as a deduction against your rental income when calculating your tax liability. It does not have to be an interest only mortgage.

Brendan

 

[modestus]

Thanks for that Brendan -obviously I am right in saying an interest only mortgage is more efficient for an investment property in that the higher the intrest paid the more you can claim back from the Revenue?