Mortgage Int Relief - taking out 2nd Mortgage

[emily_moss]

I currently have a mortgage in my name only and I am getting Interest Relief of €94 approx.
I am about to draw down on a second mortgage with my partner in the next few weeks. He is a first time buyer so will get the full €133.33 interest relief.
What effect will paying interest on the second mortgage have on my relief?
Or am I no longer a first time buyer and therefore will get no interest relief?

Thanks for you help.

 

[CCOVICH]

Will you own 2 properties? You can only claim tax relief at source (TRS) on your PPR (principle private residence). You can only ever have one PPR.

You can claim TRS on the jointly owned property, but you will have to stop claiming it on the first property.

You can claim a deduction for interest paid against your tax bill if you are renting out the first property.

For TRS purposes, you are classed as a first time buyer for 7 years from the date of your initial claim.

If you rent out your first property within 5 years of buying it, you may be liable for a stamp duty clawback.

 

[Husssy]

i have similar question to above. my partner and i are taking out a mortgage for €250k over 30 yrs at approx 4.5%. i am not a first time buyer(bought first house in 1997), but my partner is ftb, any ideas to what our trs would be monthly

 

[emily_moss]

Yes I will have two properties and the new one will be my PPR.
If I claim only on the jointly owned property (2nd one) will I get the maximum TRS (Mortgage is 350K)?

The first property will be rented and I purchase that in December 2001 and so I am okay regarding stamp duty.

This is all very complicated. How do I go about claiming TRS for the second property and cancelling it from the first - if this is best option for me?

Thank you.

 

[ClubMan]

If I claim only on the jointly owned property (2nd one)

What do you mean "if"? As stated above you can only have a single PPR and you can only claim TRS on loans used to purchase that PPR.

will I get the maximum TRS (Mortgage is 350K)?

You'd need to post the current rate and mortgage term or just enter the details into Karl Jeacle's mortgage calculator to estimate the annual interest bill so you know how much qualifies for TRS. I think that you will continue to qualify for FTB TRS for the remainder of your 7 year FTB period up to but I'm not 100% sure. In any case if you bought your first PPR in 2001 then it is probably the case that 2007 is the last year for preferential FTB TRS if applicable.

This is all very complicated. How do I go about claiming TRS for the second property and cancelling it from the first - if this is best option for me?

There is no option to keep claiming TRS on the original property once it ceases to be your PPR. To switch the TRS to the new PPR loan write to Revenue. There may be a form for this but writing should work just as well.