mortgage interest relief for a first time buyer

[legallady]

Hi
Can anyone explain to me how mortgage interest relief works? I am a first time buyer with a morgage of 410k over 35 years, interest only for the first two years...

 

[Blinder]

Have you had a look at the revenue site?
[broken link removed]

It is all explained there, including how to claim it

 

[ClubMan]

Hi
Can anyone explain to me how mortgage interest relief works? I am a first time buyer with a morgage of 410k over 35 years, interest only for the first two years...

Presumably you are an owner occupier? If not then owner occupier mortgage interest relief does not apply although investors can write off mortgage interest as an allowable expense against rental income.

You don't say what your rate is but say it was 6% then your annual interest bill would be c. €24K as long as the capital was not reducing (i.e. interest only) and up to €8K of that per first time buyer mortgage holder would qualify for relief at 20% - i.e. €8K p.a. @ 20% = €1,600 p.a. or €133.33 p.m. reduction in your interest bill. Once you apply for the relief the lender will grant it at source.