Mortgage interest relief/ TRS increased for FTBs from 2004 to 2008

Discussion in 'Mortgages and buying and selling homes' started by Brendan Burgess, Dec 6, 2011.

  1. Brendan Burgess

    Brendan Burgess New Member

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    Mortgage Interest Relief

    The Government is committed to helping address the particular problems faced by those that bought homes at the height of the property boom between 2004 and 2008. Therefore, I am going to fulfil the commitment in the Programme for Government to increase the rate of mortgage interest relief to 30 per cent for first time buyers who took out their first mortgage in that period.


    I am also confirming the decision made by my predecessor that mortgage interest relief will no longer be available to house purchasers who purchase after the end of 2012 and will be fully abolished from 2018.



    For those who wish to buy a home in 2012, I am providing today that:

    • First time buyers will get mortgage interest relief at a rate of 25 per cent rather than the 15 per cent proposed by the previous Government; and
    • Non-first time buyers will benefit from relief at 15 per cent instead of the reduced rate of 10 per cent proposed by the last Government.
     
  2. AnnQuinn

    AnnQuinn Guest

    How can I calculate what this will mean to my monthly mortgage repayments?
     
  3. Declan_M

    Declan_M Guest

    i bought house as an FTB in 2004, relief was reduced to 36pm at start of year, what does this mean for me? any examples i heard on radio where for someone who bought in 2007 and is still getting full relief,,
     
  4. rameire

    rameire Frequent Poster

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    The Below details are from the old budgets which were in play and will be until 31/12/2011.
    Year 1 & 2 at 25% Ceiling 10,000
    Year 2 & 3 & 4 at 22.5% Ceiling 10,000
    year 6 & 7 at 20% Ceiling 10,000
    all years thereafter at 15% Ceiling 3,000 Ending 31/12/2017
    If you topped up or purchased in the last 6 years and were receiving TRS at the rate of 15%, you will continue to receive TRS at the rate of 15%.
     
  5. rameire

    rameire Frequent Poster

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    so, all first time buyers since 2004 will see an increase
    my rate will be going from 20% to 30% woo hoo.
     
  6. djh

    djh Frequent Poster

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    Am I right in thinking that that for a single person the new 30% with a ceiling of 10,000 euro translates to a max relief of 3000 per year?

    (figures double for a married couple?)
     
  7. rameire

    rameire Frequent Poster

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    yes
     
  8. djh

    djh Frequent Poster

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    Does anyone know if the new 30% relief will have a 10,000 ceiling for each year up until 2017?
     
  9. NorfBank

    NorfBank Frequent Poster

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    Yes.
     
  10. deeheg

    deeheg Frequent Poster

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    Declan, I did also but the reason i get full relief I think is that I was interest only, therefore capital not going down? maybe that reason?
     
  11. djh

    djh Frequent Poster

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    This is great news.

    Have you come accross anything from Revenue/Finance confirming it?
    Only thing I was able to find was not clear and seemed to say that the ceiling would drop after a person's 7th year and run at a reduced ceiling until 2017.

    Thanks.
     
  12. NorfBank

    NorfBank Frequent Poster

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  13. djh

    djh Frequent Poster

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    Hmmm, taking a look at that link, but it says
    "After years 7, the rates and thresholds for relief are as for non-first time buyers."
    Which would indicate that the ceiling ill drop to 3000 from 10000 in year7 and beyond.
     
  14. rameire

    rameire Frequent Poster

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    this revenue.ie page
    this page on the revenue is good.
    some one else found it, but it explains all
     
  15. DerKaiser

    DerKaiser Frequent Poster

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  16. djh

    djh Frequent Poster

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    Cool, thanks DerKaiser.
    That clears it up.
    30% of a 10k up to your 7th year. Then 30% of 3k until 2017.
    Double for married/civil partners.
     
  17. munchy

    munchy Frequent Poster

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    I posted elswhere asking about the logistics of this - how do we avail of this - do we approach our mortgage lender or do we contact revenue?
    The EBS adjusted my repayments when it learned that I was no longer living in the apartment and renting it out, but wonder if I should write to them to reinstate my status as a primary ftb? I bought in 2005
     
  18. rameire

    rameire Frequent Poster

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    if you are not residing in your property you are not eligible for the trs.
     
  19. Emma1980

    Emma1980 Frequent Poster

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    Has anyone got this yet??
     
  20. peteb

    peteb Frequent Poster

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    No. With Ulster Bank and can't see it happeneing for at least another 2 months.