Mortgage Interest Relief

H

Husssy

Registered User
Messages
48
Hi All,
My partner and I are taking out a €190000 mortgage over 30 yrs at 4.84% tracker. My partner is FTB, I am not(bought first house in 1997). What would our mortgage interest relief be every month/year. Have looked at Karl Jeacle calculator could see interest per year but just couldnt work out relief. Appreciation in advance.
 
The annual table from Karl's calculator is (assuming the mortgage starts this month - i.e. mid year 2007):
Code: 
Year      Interest          Principal         Balance
2007      €5,344.28         €1,665.94         €188,334.06
2008      €9,050.12         €2,967.40         €185,366.66
2009      €8,903.26         €3,114.26         €182,252.40
2010      €8,749.14         €3,268.38         €178,984.02
2011      €8,587.39         €3,430.13         €175,553.89
2012      €8,417.65         €3,599.87         €171,954.02
2013      €8,239.51         €3,778.01         €168,176.01
2014      €8,052.53         €3,964.99         €164,211.02
2015      €7,856.32         €4,161.20         €160,049.82
2016      €7,650.38         €4,367.14         €155,682.68
2017      €7,434.27         €4,583.25         €151,099.43
2018      €7,207.42         €4,810.10         €146,289.33
2019      €6,969.42         €5,048.10         €141,241.23
2020      €6,719.55         €5,297.97         €135,943.26
2021      €6,457.38         €5,560.14         €130,383.12
2022      €6,182.21         €5,835.31         €124,547.81
2023      €5,893.45         €6,124.07         €118,423.74
2024      €5,590.38         €6,427.14         €111,996.60
2025      €5,272.31         €6,745.21         €105,251.39
2026      €4,938.49         €7,079.03         €98,172.36
2027      €4,588.17         €7,429.35         €90,743.01
2028      €4,220.51         €7,797.01         €82,946.00
2029      €3,834.66         €8,182.86         €74,763.14
2030      €3,429.68         €8,587.84         €66,175.30
2031      €3,004.69         €9,012.83         €57,162.47
2032      €2,558.66         €9,458.86         €47,703.61
2033      €2,090.56         €9,926.96         €37,776.65
2034      €1,599.29         €10,418.23        €27,358.42
2035      €1,083.70         €10,933.82        €16,424.60
2036      €542.61           €11,474.91        €4,949.69
2037      €60.07            €4,947.23         €2.46
Your partner (as a FTB) would be entitled to relief on a maximum of €8K p.a. in the first 7 years. You (as a non FTB) would be entitled to relief on a maximum of €3K p.a. This means relief on a maximum of €8K + €3K = €11K p.a. jointly. However since the annual interest (at the current rate) for the first 7 years is below this you get relief on lower amount actually paid. For example in 2008 you would get relief on €9K @ 20% = €1,800 p.a. or €150 p.m. off your mortgage repayment at source. In year 7 your partner's relief limit will also fall to €3K so you would get relief on a maximum of €6K total or whatever you actually pay if less. Obviously if interest rates and owner occupier mortgage interest relief rates change (as I believe they are supposed to in Budget 2008) then the precise figures will also change.

By the way you should use Karl's calculator to check the total cost difference between taking the mortgage over 30 years and repaying it over a shorter term (either by arranging the short term at the outset or by accelerating capital repayments and reducing the effective term) - if you can afford it!
 
Much appreciated Clubman. We are signing contracts tomorrow so nerves are tingling, herself is very nervous first home and all that, so she needed to know what our nett payments would be(our lives have ended she joked last night!!)
 
So your net repayment (at current rates) should be c. €1K minus relief of c. €150 =~ €850 excluding mortgage protection life assurance, home insurance (if not payable annually) etc. Good luck.
 
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