Hi,
In a nutshell...Late 40's- Living in UK 7 years. Income approx £100k. London flat worth £650 and owe £380(0.99% interest rate) Next year considering buying an investment property here valued at £400k- will need 25% deposit- 100k.
Options are to borrow on my flat- Bank have told me I can borrow up to 80% of the value at about 1.5%
However in Ireland I have a few RIP's and with Euro increasing against £ I wondered should I borrow at home. Total value E1.25 million. Mortgage debt 0.5 million( One property valued at 300k totally mortgage free and others vary from 25% LTV to one which was in negative equity but now prob 95% LTV- this however is on a 1% tracker with rental income of E1300 per month and mortgage payment of E375 monthly) As a rough guide total rental income 2.5 times total mortgage payments.
Questions going through my mind
1) Borrow in UK at 1.5%
2) Borrow in Ireland at I'm not sure- Between 3% and 5%? But big savings on exchange rate.
3) Will an Irish bank lend me money to invest in property in UK and me not a resident?
4) General thoughts? From 2020 HMRC won't allow mortgage interest to be offset against tax- is it worth doing at all? Have I enough on my plate already?
Cheers guys
NBC
In a nutshell...Late 40's- Living in UK 7 years. Income approx £100k. London flat worth £650 and owe £380(0.99% interest rate) Next year considering buying an investment property here valued at £400k- will need 25% deposit- 100k.
Options are to borrow on my flat- Bank have told me I can borrow up to 80% of the value at about 1.5%
However in Ireland I have a few RIP's and with Euro increasing against £ I wondered should I borrow at home. Total value E1.25 million. Mortgage debt 0.5 million( One property valued at 300k totally mortgage free and others vary from 25% LTV to one which was in negative equity but now prob 95% LTV- this however is on a 1% tracker with rental income of E1300 per month and mortgage payment of E375 monthly) As a rough guide total rental income 2.5 times total mortgage payments.
Questions going through my mind
1) Borrow in UK at 1.5%
2) Borrow in Ireland at I'm not sure- Between 3% and 5%? But big savings on exchange rate.
3) Will an Irish bank lend me money to invest in property in UK and me not a resident?
4) General thoughts? From 2020 HMRC won't allow mortgage interest to be offset against tax- is it worth doing at all? Have I enough on my plate already?
Cheers guys
NBC