Investment / Taxation Advice

shej

Registered User
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I'm looking for advice for my sibling.

She and her husband are selling her PPR and moving to a bigger property - approximately €150k or equity left on PPR, new property €500k. Intend to sell PPR and leave them with a €350k mortgage on PPR.
Her husband has a RIP, which he's had for over 15 years and is now mortgage free (value c. €200k). Located in a very good rental area, generating a good income etc. which they intend to keep.
My query is could they draw down a new mortgage on the RIP for say €150k and use this money to take €150k off the PPR mortgage leaving them obviously with two mortgages (i.e. €150k on RIP and €200k on PPR.)
If this were possible they would then get the benefit of the interest relief on the RIP mortgage to offset against their rental income. I'd understand the RIP mortgage interest rate would be higher than the PPR interest rate but the RIP mortgage interest relief would be a greater saving I think
Is the above possible?
 
Tks Red Onion;
If they were to sell the RIP and put that against the new PPR mortgage and convert their original PPR into a RIP, there is about 100k left on that mortgage,
Would this be tax compliant?
 
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