A
Anchorman1
Guest
Hi Guys,
My wife and I are currently in the process of purchasing a new home and I need a little advice.
We currently have a three bed home with an outstanding mortgage of approx 170k with a realistic value of 290k in this market. The interest rate on this is .6% above the ECB rate(Currently 2.1%). We have the house 7 years plus, but we would like to keep this house as a 2nd home for the moment as it's in a good rental area.
The home we are purchasing is 370k though we need another 110k to complete renovations. We have 95k in savings. It looks like we will go with AIB fixed rate for 2 years of 2.8% and we have been approved for 90% of the purchase price. So we need 37K for the 10% deposit, 18k for stamp which eats into our savings to do the renovation.
I know it's been mentioned before that your investment home should have most of the debt associated to claim interest relief on your investment property and to reduce the debt on your primary property. I asked the bank about a re-mortgage for my initial property close to it's value but the rate I'm been quoted is 4.65% since it's seen as Buy to Let property.
I don't think it makes sense to re-mortgage my existing home as the advantages of claiming relief is been out weighted by the cost of the new mortgage rate. 2.55% increase in the rate. Is there any advantages to remortaging my intial propery which I'm missing.
thx.
My wife and I are currently in the process of purchasing a new home and I need a little advice.
We currently have a three bed home with an outstanding mortgage of approx 170k with a realistic value of 290k in this market. The interest rate on this is .6% above the ECB rate(Currently 2.1%). We have the house 7 years plus, but we would like to keep this house as a 2nd home for the moment as it's in a good rental area.
The home we are purchasing is 370k though we need another 110k to complete renovations. We have 95k in savings. It looks like we will go with AIB fixed rate for 2 years of 2.8% and we have been approved for 90% of the purchase price. So we need 37K for the 10% deposit, 18k for stamp which eats into our savings to do the renovation.
I know it's been mentioned before that your investment home should have most of the debt associated to claim interest relief on your investment property and to reduce the debt on your primary property. I asked the bank about a re-mortgage for my initial property close to it's value but the rate I'm been quoted is 4.65% since it's seen as Buy to Let property.
I don't think it makes sense to re-mortgage my existing home as the advantages of claiming relief is been out weighted by the cost of the new mortgage rate. 2.55% increase in the rate. Is there any advantages to remortaging my intial propery which I'm missing.
thx.