Two mortgages - worth switching?

[Unregistered]

Hi,

I have two mortgages, one on my main residence and the other on an investment property. Both small - main residence -48,000euro and investment = 65,000 euro. Would it be worth my while switching these from PTSB to either Bank of Scotland or UB? Also I am paying two mortgage protection policies at present, is it possible to put the two homes, PPR and Rental property on one policy?

 

[tonka]

yes, look at it, also look at NIB if €48k + €65k (€103k total) = 2.5 times x main income or less for tracker at 2.8% or so.

tax may be awkward if any is a section 23 or 50 investment

 

[ClubMan]

You can estimate the savings achievable by switching from one mortgage package or provider to another using Karl Jeacle's mortgage calculator. See the Compilation of useful links section in the area.

What do you mean by mortgage protection? Mortgage protection life assurance or mortgage repayment protection insurance? Mortgage protection life assurance is only mandatory (in most cases) for owner occupier properties and not for rental/investment properties (unless the lender insists). See this topic for more info.

In my personal opinion anybody who is in the rental property investment business (and a business it is even if it's not the source of your main income) should retain the services of a knowledgeable and trustworthy accountant/tax advisor to assist with stuff like this.

 

[Unregistered]

HI Tonka,
Can I put the two mortgages together even though one is for a rental property. How would I claim the relevant amount as tax relief when making a tax return on the rental property.

Clubman you ask:

What do you mean by mortgage protection? Mortgage protection life assurance or mortgage repaymen t protection insurance?


I was forced to take out a new mortgage protection policy by PTSB when they gave me the loan for the rental property. In other words I had not choice. Having said that if anything happens to me or my wife at least the mortgage would be paid off.
What I would like to do though is put the two properties on the one policy as the cost would be considerable lower that way - I hope!! My question was is there any reason why I couldn't do this.

Thanks for the links - very useful.

 

[ClubMan]

I was forced to take out a new mortgage protection policy by PTSB when they gave me the loan for the rental property. In other words I had not choice.

Thanks for the clarification. From what I've read here on AAM it looks like some (many?) lenders insist on mortgage protection life assurance for investment mortgages alright which seems a bit odd to me.

What I would like to do though is put the two properties on the one policy as the cost would be considerable lower that way - I hope!! My question was is there any reason why I couldn't do this.

I can't see any obvious reason why this would not be possible as long as you keep your lender(s) informed since they have a vested interest in the mortgage properties. I'm not sure how it works if the outstanding term on the mortgages are different and/or you want to opt for decreasing term cover but I presume that you get cover for the full amount (and maybe level term?) for the length of the longest outstanding term?