Tax relief

H

Haille

Registered User
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I intend to purchase a 2nd.property.I have no mortgage on my main residence.I intend to let the 2nd.property.I understand I can offset the interest repayments against taxable rental income from a mortgage.
Does this apply if I go down the re-mortgage route,will I be able to claim tax relief for interest repayments on a remortgage of my main residence.Is it better just to take out a mortgage on the 2nd.property only? I contacted 2 building societies,1 said I could not,the other was not sure.Any advice would be greatly accepted.
 
Don't expect independent, professional tax advice from a lender. You can offset interest on any loan(s)used to purchase/renovate a rental property against rental income from that property no matter what (if any) assets the loan(s) is(are) secured on. So you could remortgage your PPR to buy an investment property and offset interest against rental income. Obviously you cannot also claim owner occupier mortgage interest relief on the same interest and can only claim against interest on a loan used to purchase/renovate your PPR.

This thread might also be of interest to you:

Interest only mortgage
 

It doesn't matter how you raise the money or what property the loan is secured on. Tax relief will be available depending on how the money was used. For example if you top up the mortgage on your main residence by €200,000 and use half the money to buy an investment property and the other half to renovate your main residence then 50% of the interest payable on this top up can be offset against your rental income and you can claim Tax relief at source on the balance as it was used on your main residence.
 
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