1eyeonthefuture
Registered User
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Currently doing plans for small refurbishment /extension of current PDH. Will get a mortgage top up for same.
Am toying with the idea of getting enough in the top up to act as a deposit for purchase of a BTL apartment.
Current mortgage @2.99 with mortgage of 90k and value circa 430k.
Also have an existing BTL @ 4.3% /90k mortgage, value circa 160k. Rental income covers the mortgage.
A guy I know is looking at selling a 1 bed apartment close by which generates €900 pm..there is a very strong demand for such units in my area
At 4.8% I've calculated a mortgage monthly repayment of €780pm over 15 years, although my own PDH mortgage will be cleared in 7 years so will be able to attack both rentals at that point, although granted this will be lengthened somewhat by the top up.
Has anyone took value out of their PDH of late to finance a BTL? Any regrets, advice etc.??
Would it make more sense to refinance the entire amount and therefore obtain better rate although there would be a tradeoff against not being able to reduce rental income tax by mortgage interest relief I would have thought?
Also would the bank I'm approaching for the BTL mortgage look to see where the funds for the deposit came from and look with disapproval at this method as essentially I'll be telling the PDH bank the entire top up is for the extension.
It's always been in the back of my mind to purchase an additional BTL when the main mortgage is paid up in order to aid pension income however this would accelerate the plan so to speak.
Thanks all
Am toying with the idea of getting enough in the top up to act as a deposit for purchase of a BTL apartment.
Current mortgage @2.99 with mortgage of 90k and value circa 430k.
Also have an existing BTL @ 4.3% /90k mortgage, value circa 160k. Rental income covers the mortgage.
A guy I know is looking at selling a 1 bed apartment close by which generates €900 pm..there is a very strong demand for such units in my area
At 4.8% I've calculated a mortgage monthly repayment of €780pm over 15 years, although my own PDH mortgage will be cleared in 7 years so will be able to attack both rentals at that point, although granted this will be lengthened somewhat by the top up.
Has anyone took value out of their PDH of late to finance a BTL? Any regrets, advice etc.??
Would it make more sense to refinance the entire amount and therefore obtain better rate although there would be a tradeoff against not being able to reduce rental income tax by mortgage interest relief I would have thought?
Also would the bank I'm approaching for the BTL mortgage look to see where the funds for the deposit came from and look with disapproval at this method as essentially I'll be telling the PDH bank the entire top up is for the extension.
It's always been in the back of my mind to purchase an additional BTL when the main mortgage is paid up in order to aid pension income however this would accelerate the plan so to speak.
Thanks all
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