5 Mortgages one repayment?

P

Pexus1976

Registered User
Messages
189
Hello,

I have 5 mortgages. 3 properties in Ireland and 2 in Spain. Currently living in one and renting other 4. (Living in Ireland)

Can I consolidate these mortgages in to one? And if so which lenders can facilitate this?

All advice appreciated!
 
you should be able to consoildate with your current lender, unless all are with different lenders. if so, do some sums and phoning around to get best deal.
 
Hi there,

No there all with different lenders PTSB, BOS IIB... Do you think it would be possible to consolidate these and if I do will i lose out on the interest relief from my primary home?
 
Not sure if putting them all into one would be a good idea. I would reduce to 2 only. One for investment properties, one for your own home. (own home seperate for tax relief purposes) Some banks are very keen, and offer competitive rates on this type of deal.
 
Munsterdude said:
Not sure if putting them all into one would be a good idea. I would reduce to 2 only. One for investment properties, one for your own home. (own home seperate for tax relief purposes) Some banks are very keen, and offer competitive rates on this type of deal.
Click to expand...

Pexus

Bank I work for looks at deals like this all the time, shouldnt be an issue at all
Wouldnt say Munsterdudes suggestion on two loans is strictly correct(sorry MD!! ) it might be but not necessarily.

Depending on level of mortgage relief you are getting (max c 127 pm or something) and amount of time you have left to recieve this it may make more sense to refinance into 1 loan all your investment properties as the higher level of interest you are paying here can be written off against your rental income.

e.g (rough example)
loan 1m @ 4% = 40k interest which can be written off against first 40k of rental income

loan 800k (less PDH debt) @ 4% = 32k interest, means you have to pay income tax on additional 8k rent @ marginal rate 42%= 3.3k tax

meaning youd need to be recieveing 3.3k mortgage relief to make it worthwhile putting in separate loan..

This is a v v simplified example to be fair, your accountant will put you right anyways (and I am not an accountant so this isnt gospel)!!!

Also benefit of having your PDH unencumbered in doomsday scenario you wont be on street

Pm if you have any other questions
DC
 
Pexus1976 said:
Hello,

I have 5 mortgages. 3 properties in Ireland and 2 in Spain. Currently living in one and renting other 4. (Living in Ireland)

Can I consolidate these mortgages in to one? And if so which lenders can facilitate this?

All advice appreciated!
Click to expand...



Each lender will have a legal charge on the respective property. HOw do you expect the title and legal aspect of combining 5 mortgages would work?
 
New lender will take over the legal charges on all the properties simple as that Ice cool

loans cleared with existing providers deeds returned and charged to new lender
 
dancarter said:
Pexus

Bank I work for looks at deals like this all the time, shouldnt be an issue at all
Wouldnt say Munsterdudes suggestion on two loans is strictly correct(sorry MD!! ) it might be but not necessarily.

Depending on level of mortgage relief you are getting (max c 127 pm or something) and amount of time you have left to recieve this it may make more sense to refinance into 1 loan all your investment properties as the higher level of interest you are paying here can be written off against your rental income.

e.g (rough example)
loan 1m @ 4% = 40k interest which can be written off against first 40k of rental income

loan 800k (less PDH debt) @ 4% = 32k interest, means you have to pay income tax on additional 8k rent @ marginal rate 42%= 3.3k tax

meaning youd need to be recieveing 3.3k mortgage relief to make it worthwhile putting in separate loan..

This is a v v simplified example to be fair, your accountant will put you right anyways (and I am not an accountant so this isnt gospel)!!!

Also benefit of having your PDH unencumbered in doomsday scenario you wont be on street

Pm if you have any other questions
DC
Click to expand...

Refinancing will not make any difference to how much you can claim agains't the rental income and how much you can claim mortgage interest relief on. You can only claim interest on loans made for the purpose of purchasing the rental properties against rental income.

If for example using the figures above you refinanced five loans into one of EUR1m and 200K of this was refinancing the mortgage used to purchase the private home and 800K the mortgages used to purchase the rental properties you are only entitled to claim 80% of the interest paid agains't rental income.

The 20% of interest can I think still be used to claim the mortgage interest relief up to the allowable limits for private homes.

There may also be an issue with the interest on the loans for the foreign properties only being allowable against the foreign rental income but I'm not really sure on that one. See this thread.
 
You must log in or register to reply here.
Back
Top