What the longest mortgage available?

  • Thread starter spideryartic
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spideryartic

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Hi:
I'm playing aroung with an idea in my head but I need more information to see if it makes any sense at all!

I have a second house on which I have an outstanding bridging loan of €500,000. The house will bring in about €12,000 in rent each summer.

This house was purchased for personal reasons, so selling it is not an option.

My question is:
Instead of paying off the bridging loan, would it be possible to arrange a very long term mortgage with a bank whereby the rent would approach the mortgage repayment?

I guess not! Any other ideas?
Thanks
 
Believe it or not and despite my giving out about Banks, they will accommodate and tailor make loans for borrowers, as long as it can be proved that there is the ability to repay both interest short term and capital long term. Interest only on €500 k would be approx €35k per year, at present interest rates. If you can show that you have enough surplus earnings after your monthly living & mortgage costs, you won't have a problem. Otherwise its back to Plan B.
 
If you have a mortgage on your home, you should always have an interest only mortgage on your investment property. It is important that you pay off your home mortgage first as it attracts much lower tax relief than the tax relief on the rental property.

Brendan
 
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