Posted by
john5023
19 yrs ago
I am thinking about buying the flat I am currently renting. At the moment, part of my salary is classified as housing allowance against the rent I pay.
If I take out a mortgage to buy a flat, can I apply the housing allowance against it?
If so, is it applied against the entire monthly mortgage payment or only the principal (excluding interest) portion?
Thank you.
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hkkm
19 yrs ago
My friends who are academics (those who still receive a housing allowance) ARE allowed to use it to pay a mortgage, for up to (I think) 10 years. So it obviously varies between employers, and you definitely need to consult your HR.
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tggb
19 yrs ago
It depends on your employer. They may allow you to just take the allowance each month and then you put it towards a mortgage. If that's the case, you'll need to pay tax on the housing allowance at the full amount as if it was added to your salary. Interest payments on the mortgage are deductable but there are limitations.
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