Remortgaging help - first time buyer

[aine77]

I have been trying to find out about remortgaging. I am a first time buyer and have my house 2 years so therefor have 5 years left of the increased mortgage relief for first time buyers under the 2007 budget. What I want to know is if I remortgage am I still classed as a first time buyer?? Also I have read that you need to remortgage for home improvements to still be classed as a first time buyer, is this true?? Also if I am still classed as a first time buyer is the increased interest relief just on the original mortgage or does this include the new amount. I know there are a lot of questions here, any answers would be greatly apreciated.

 

[ClubMan]

What I want to know is if I remortgage am I still classed as a first time buyer??

I'm pretty sure that you are.

Also I have read that you need to remortgage for home improvements to still be classed as a first time buyer, is this true??

No - but you can only claim owner occupier interest relief on the amount of the loan actually used to purchase or renovate your home. If you remortgage and use the money for some other purpose then you cannot claim relief on the interest on the additional topup amount.

Also if I am still classed as a first time buyer is the increased interest relief just on the original mortgage or does this include the new amount.

The full amount if the money is used for home improvements etc. The original amount if the money is used for some other purpose.

 

[aine77]

Ah ok thanks a million that clears alot up for me, another quick question: if i'm remortgaging to pay off a loan that was used to pay the deposit on the house then will the total amount be included in the lower interest???

 

[ClubMan]

The interest on the original loan actually qualifies for tax relief anyway but you would have to claim it manually rather than at source. Interest on any loan(s) (secured or unsecured) used to purchase a PPR qualifies for relief. Not just mortgage loans! In any case if you replace the presumably higher cost existing loan with lower cost mortgage debt through a topup then the additional mortgage interest should qualify for relief. You might also want to inquire with Revenue about claiming back relief on the deposit loan if possible. You should write to them with details and see what they say.

 

[sullyman]

If I remortgaged my current property and availed of 40K to buy furnishings etc. for a new PPR, would i avail of any tax relief for the new PPR

 

[PM1234]

If I remortgaged my current property and availed of 40K to buy furnishings etc. for a new PPR, would i avail of any tax relief for the new PPR

This is not a good idea. 40K on decorating added on to the term of your mortgage plus interest is not cost effective.

 

[ClubMan]

If I remortgaged my current property and availed of 40K to buy furnishings etc. for a new PPR, would i avail of any tax relief for the new PPR

I very much doubt it. If the money was spent on renovating or extending it then the interest would qualify for relief. However redecorating or just refitting non structural elements would not. That's as far as I know.