I recently inherited a property in Wexford. However, I live and work in Dublin and have been looking to buy a house there as my home. My current mortgage approval is about to expire.

I was thinking of keeping the property in Wexford as a holiday home as it would not make a big difference to my house-buying budget if I sold it. I was wondering what would be the stance of bank in relation to this property when I renew my mortgage approval? Would they insist on me pledging the house in Wexford as security? Would I be charged an higher mortgage rate?

Mr J.K., Dublin

In my experience, the banks take everything into account when measuring you up for credit – a mortgage or otherwise.

You say you already have mortgage approval but that it is about to expire. As a bank gave you such approval recently, it clearly considered you a good risk for the money at that point. So what has changed since?

Well, on the basis of your letter, nothing – at least nothing that should reflect adversely on your position. Your income and outgoings are essentially the same.

What you do have is an additional asset which you did not own before. That, if anything, strengthens your position. The only way it can impinge on your position is any additional costs you will now incur in insuring, maintaining and securing it.

The bank will want to know that any such costs do not fundamentally change your ability to repay a mortgage compared with the last time you sat down with them.

On the flip side, depending on your work and position, the improving economic outlook means the bank should feel more secure about your earning capacity.

Will the bank look to include the house as security on any new mortgage approval? It is very possible that they will try but I would resist.

Unless you are applying for a far higher loan than that in the current mortgage approval, there is no reason why you should be pledging additional security and it would be, in my view, unreasonable of the bank to seek it.

Will they charge you a higher rate under any new mortgage approval? Again, you don’t tell me the rate prevailing on the existing agreement but, in general, variable rates have inched down in recent months so it is hard to see how you should be paying a higher rate. I would expect the rate on offer to be much the same as the original approval, if not necessarily identical.

The Wexford property should have no impact on the interest rate. Your existing mortgage approval is for the purchase of a principal private residence – ie a main home – and you still intend purchasing that in Dublin.

New UK rules on nonresident property sales confuse me I came across your email address while googling info on selling my UK property. I am completely confused.

I bought my property in Edinburgh in 1994. I moved to Ireland in 2004 and had been renting the flat out until June last year. The flat went on sale in August 2014. It was valued at £90,000. I have just agreed a sale for £80,000. There is an outstanding mortgage and legal fees.

What I really need to know is, am I paying capital gains tax on the profit or is it any gain in the value of the flat as at the 5th of April to date? Obviously I am selling below the valuation so there has been no gain since April.

Ms A.K., Sligo

There has been a fundamental change in how the UK taxman treats the sale of property in the UK by people who are not resident in the country for tax.

Essentially, up to April this year, a nonresident could sell a property in the UK and not face any claim for capital gains tax. UK residents could be taxed for the same sort of property sale.

The chancellor of the exchequer, with one eye on fairness and the other on a possible source of income for the UK revenue, decided to end this anomaly.

It can be very complicated, involving the calculation of net gains after allowable expenses, the computing of capital gains tax relief and its amendment to allow for periods of rental and owner occupation.

The good news, for you, is that none of this matters – for two reasons.

First the new rules only come into force on April 6th last – the new tax year in the UK – and, as is usual, it is not retrospective, so there is no looking back to assess any gain since you bought the property in 1994.

Second, it appears you have made no gain. As you say, the property was valued at £90,000. Now, I understand this was back in August last year when it first went on the market, but as you sold it for £80,000, it is likely that any pick-up in price since this April was negligible, if it existed at all.

However, even if there is no gain and no tax owing, you are obliged to notify the UK revenue of the sale once it has been finalised, and you may have to file a tax return.

Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2, or email dcoyle@irishtimes.com. This column is a reader service and is not intended to replace professional advice