onelife

[andrea]

Have a house, want to trade up but keep my current house as an investment. Am looking for an interest only mortgage for my investment property and a capital+interest mort for my PPR and have rang half a dozen brokers and mort. providors.
I got the best rates from a co. called onelife on pearse st. where I was offered a tracker rate on both mortgages.
Whilst the rates on both were the best I was given, the next closest offer that I was happy with, which was very close to the tracker offer, was an offset mortgage with ulsterbank on my PPR. Can anyone suggest why I would go with one over the other if the repayment figures were close enough so there isnt a difference and also has anyone had dealings with onelife and give opinion?


Also can someone say whether the following is true. As I understand it, if I owner occupy my house for the last 10 years, sell and make a profit of 100k, Im not liable for CGT, but if I rent it out for 1 year more(11 yrs in total) then if I sell and still make 100k Im liable for tax on 1/11th of the profit?

many thanks and hope Ive been clear.

 

[ClubMan]

Can anyone suggest why I would go with one over the other if the repayment figures were close enough so there isnt a difference and also has anyone had dealings with onelife and give opinion?

Well, with an offset mortgage the effective rate charged could work out lower if you can keep some of your savings in the offset account. If the choice was between trackers in or around the same rate but one is an offset mortgage then I personally would look seriously at taking the latter. Bear in mind that seemingly small differeces in rates can have a big bearing on overall interest costs. Use Karl Jeacle's mortgage calculator to model different scenarios paying close attention to the total interest bill over the lifetime of the mortgage.

Also can someone say whether the following is true. As I understand it, if I owner occupy my house for the last 10 years, sell and make a profit of 100k, Im not liable for CGT, but if I rent it out for 1 year more(11 yrs in total) then if I sell and still make 100k Im liable for tax on 1/11th of the profit?

The sale of one's principal private residence is exempt from CGT. If you sell it within one year of vacating it then this exemption still applies. Even if you rent it for that year it still applies. If you continue to rent it thereafter and sell it later then some portion of the eventual resale gain will be assessable for CGT. For example if you live in it for 10 years then rent it for 5 years then 4/15ths of any resale gain will be assessable for CGT.
many thanks and hope Ive been clear.