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Mortgage query

  • 04-07-2021 2:10pm
    #1
    PaidV
    Registered Users Posts: 71 ✭✭


    Hi all,

    Wondering could anyone here clarify something for me. I have a mortgage on my house with circa 150k of a balance, the house is valued at circa 350k. I am looking into the feasibility of buying a second home, living in it and letting out my current property, the rental income would more than offset the existing mortgage on my current home.

    Would i be able to remortgage my existing home to pay for the new one or would I have to apply for a second mortgage completely?

    Mortgage is with BOI

    Thanks
    Paidi


Comments

  • #2
    vrusinov
    Registered Users Posts: 162 ✭✭vrusinov


    Due to COVID banks don't take potential rental income into account at the moment. So you'd have to apply for 2nd mortgage and banks will assume income from existing property will be 0.

    May be possible when/if things get back to normal.


  • #3
    wench
    Registered Users Posts: 1,629 ✭✭✭wench


    Just so as you are aware, even if you add the new borrowing to the existing house, you can still only offset the interest on the current 150K against tax on the rental income.


  • #4
    JCN12
    Registered Users Posts: 165 ✭✭JCN12


    Not answering your question I know, but please keep in mind that rental prices are unlikely to continue at current inflated rates over the term of a mortgage.

    Just be careful when it comes to your home. No offence intended.



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