FTB and Mortgage Interest Relief

[Herb]

I read in the Independent during the week (Tuesday's Money I think) that for the purposes of Mortgage Interest Relief, that a First time buyer is still a First time buyer even if they sell their first PPR to upgrade to a new PPR as long as it falls within the first 7 years. So will continue to benefit to a max relief of €3,200 as opposed to €1,200.
Is this accurate? Thanks.

 

[Satanta]

They will continue to be eligible for the max relief for the seven year period, yes. Covered lots here on AAM.

Whether or not they recieve €3200 (or €1200) depends on the specific mortgage and the interest being paid, but yes, chances are (given the mortgage is less than 7 years into its term and will still have high interest) they will recieve the €3200.

 

[davidoco]

they will recieve the €3200.

Remember folks that it's €3200 @ 20% tax rate so €640 pa or €53 per month in real savings.

 

[ronaldo]

After changes in Budget 2007, the relief is available on up to €8000 for FTB's

 

[Satanta]

Remember folks that it's €3200 @ 20% tax rate so €640 pa or €53 per month in real savings.

Given reference to €3200 I presume they are commenting on the combined relief (married couple), so €16000 (€8000 x 2) @ 20% = €3200

 

[jrewing]

I came into a lump sum and paid off my FTB mortgage after 1 yr in 2006.

If I trade up in 2007 and get a new mortgage, will I have mortgage relief for the balance of the 7 year term which I didn't use, or is the clock still running on my 7 years ?

 

[Satanta]

If I trade up in 2007 and get a new mortgage, will I have mortgage relief for the balance of the 7 year term which I didn't use, or is the clock still running on my 7 years ?

The clock is still running.

It's seven years from the date of the initial purchase. Doesn't matter how many times you change PPR, if you sell and rent for a few years... it's still seven years from the first purchase that the FTB rate is available.