Mortgage for investment - think it's set up incorrectly?

L

lizabeth

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Hi

Originally, planned to sell house - 250K, and use funds to do self-build, so mortgage setup didnt really matter at time.

Now, am considering holding house 1 and rent. But problem now is that only 45K mortgage top-up exists on house 1 (total mortgage is 67K). Facility to borrow 260K on self-build house. So realise error now that house 2, which we will occupy has bulk of mortgage while rental house - house 1 has smaller mortgage. Any way to change this, firstly? Have accepted loan offer and chq on the way.

Secondly, will this make a difference - the lender in processing new mortgage for 260K processed it as a "buy-to-let" mortgage. So according to revenue can this be the rental mortgage, even if we are using this house to live in?
 
No - you can claim interest against your rental income, only on a loan used to buy the investment property. So if you have a mortgage of €45k left, convert it into interest only.

You should not get a "buy to let" mortgage on your home. The lender might subsequently argue that it is not a residential mortgage. Residential mortgages have better treatment under the Consumer Credit Act.

Brendan
 
The lender set up the buy to let, knowing we were gonna occupy this house - is there a catch for me now, even in trying to claim mort interest relief on home mortgage, which is larger of 2 loans? Who do I clarify my situation with - ought I go back to lender or check with revenue?
 
The Revenue position doesn't change.

What does your lender mean by a "buy to let" mortgage? A higher interest rate? Who is the lender?

Brendan
 
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