mortgage interest relief

L

legallady

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I am a first time buyer. I have a mortgage of 410,000k and i am single. My interest rate is 4.9% APR and its a 35 year mortgage. How much will I get back each month in mortgage interest relief?
thanks!
 
Maximum interest relief in your situation is €8K @ 20% = €1,600 p.a. or €133.33 per month credit for the first 7 years. Thereafter the maximum relief will be €3K @ 20% = €600 p.a. or €50 p.m. As long as you pay more than the relevant amount in interest each year (€8K or €1.6K) then you get the full relief amount. Otherwise you get relief on the actual amount of interest that you pay. See Karl Jeacle's mortgage calculator (Annual Table option one you enter the mortgage amount, term and rate) to estimate how much interest you will pay each year over the lifetime of the mortgage based on an assumed interest rate - e.g. columns left to right are year, interest paid, capital repaid, balance - this is just an estimate and assumes that the rate of 4.9% never changes over the lifetime of the mortgage.
Code: 
Year      Interest          Capital           Balance
2007      €13,350.80        €2,994.32         €407,005.68
2008      €19,839.13        €4,678.55         €402,327.13
2009      €19,604.67        €4,913.01         €397,414.12
2010      €19,358.43        €5,159.25         €392,254.87
2011      €19,099.88        €5,417.80         €386,837.07
2012      €18,828.35        €5,689.33         €381,147.74
2013      €18,543.25        €5,974.43         €375,173.31
2014      €18,243.85        €6,273.83         €368,899.48
2015      €17,929.43        €6,588.25         €362,311.23
2016      €17,599.24        €6,918.44         €355,392.79
2017      €17,252.53        €7,265.15         €348,127.64
2018      €16,888.43        €7,629.25         €340,498.39
2019      €16,506.08        €8,011.60         €332,486.79
2020      €16,104.57        €8,413.11         €324,073.68
2021      €15,682.94        €8,834.74         €315,238.94
2022      €15,240.21        €9,277.47         €305,961.47
2023      €14,775.25        €9,742.43         €296,219.04
2024      €14,287.00        €10,230.68        €285,988.36
2025      €13,774.30        €10,743.38        €275,244.98
2026      €13,235.87        €11,281.81        €263,963.17
2027      €12,670.49        €11,847.19        €252,115.98
2028      €12,076.74        €12,440.94        €239,675.04
2029      €11,453.26        €13,064.42        €226,610.62
2030      €10,798.54        €13,719.14        €212,891.48
2031      €10,110.98        €14,406.70        €198,484.78
2032      €9,388.99         €15,128.69        €183,356.09
2033      €8,630.80         €15,886.88        €167,469.21
2034      €7,834.62         €16,683.06        €150,786.15
2035      €6,998.55         €17,519.13        €133,267.02
2036      €6,120.56         €18,397.12        €114,869.90
2037      €5,198.56         €19,319.12        €95,550.78
2038      €4,230.41         €20,287.27        €75,263.51
2039      €3,213.70         €21,303.98        €53,959.53
2040      €2,146.01         €22,371.67        €31,587.86
2041      €1,024.86         €23,492.82        €8,095.04
2042      €82.84            €8,089.72         €5.32
 
thanks for that clubman.
Im so dumb when it comes to these things, so can you confirm that I will get €133 back each month so?
 
You don't get €133 "back" - you get a deduction of €133 on your normal repayments at source (i.e. the lender deducts this amount). You must apply for this tax credit though - it does not happen automatically and don't assume that somebody else (Revenue, lender, broker etc.) will sort it out for you. For the first 7 years of the mortgage you should qualify for the full relief of €133 per month according the the above table. Thereafter you should qualify for the full €50 rate until very near the end of your mortgage.
 
thanks for clearing that up Clubman, as I said, I am such a dummy when it comes to these things! I actually got the Revenue form from the bank so I am going to fill it up and send it back today!
thanks again
 
ClubMan said:
You don't get €133 "back" - you get a deduction of €133 on your normal repayments at source (i.e. the lender deducts this amount).
Click to expand...

I don't think this is always the case. OP may see €2043 debit per month on her statement, followed by a credit line for €133, hence "getting back" the relief. This is at least how it appears on my statement.
 
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