RIP funding

A

Apollo

Registered User
Messages
121
Hi guys,

I'm just about to buy an investment property in D8 off plan for €390k.

The mortgage on my current home is 126k and its value is 900k.

Are there issues that I should be aware of if i fund the RIP through refinancing my ppr?

would i loose trs on my ppr were i to do this?

Its just that RIP rates appear to be pricier that ppr and i reckon if i put both loans into the ppr i will obtain a better rate overall assuming of course that i can actually put 2 properties into 1 mortgage!

Any suggestions?
 

You wouldn't lose TRS...but you only get it on the % of the mortgage pertaining to your PPR. Essentially the house itself and permanent fixtures.
You're on the right track
 
You can continue to claim owner occupier mortgage interest relief on the outstanding €126K of your mortgage. You can offset interest on the amount borrowed to purchase the rental property against rental income.

Bear in mind that using an interest only loan to purchase a rental property maximises the amount of interest that you can set against rental income in case that's of use to you:

Interest only mortgage
 
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