Mortgage Interest Relief - 2nd mortgage - still PPR

H

HomersCash

Registered User
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48
Hi all,

Please clarify.
I understand the rates for Mortgage Interest Relief is different for First Time Buyer than for 2nd etc.

[broken link removed]

However, a mortgage broker recently told me that your PPR - even if 2nd house - should still apply for the same relief as the first time buyer from 2007 on.
Is this wrong information?

i.e. I thought we would get 20% of our interest back as relief, but now understand the max we can is 1,200 per annum => 100 per month - no matter the amount of interest as this is our second mortgage (second PPR due to moving county)
 
Once you first qualify for the FTB rate of SD on a mortgage you can claim it for the full 7 years (even with gaps) even if you switch mortgages or buy another PPR. The use of the terms FTB and first mortgage in stuff relating to this relief is a little misleading!

Note that you won't necessarily get 20% of your total interest back - just 20% of a maximum of €8K interest per mortgage holder for FTBs in the first 7 year period.
 
Excellent stuff Clubman - thanks for the clarification.

So - FTB - in this instance really means first 7 years.
First house - 3 years PPR - now sold, just started building, no mortgage for past 6 months.
Does the 7 years keep ticking along, or is it "paused" until the new mortgage commences?

In our case - married couple, we are entitled to 20% of 16,000 per annum?
 
HomersCash said:
Does the 7 years keep ticking along, or is it "paused" until the new mortgage commences?
Click to expand...

I was wondering this too. I sold my first home after 17 months but did not drawdown second mortgage until 9 months after clearing the first one.
So on the date of the second drawdown was I 17 or 26 months into my 7 years???

Thanks
 
HomersCash said:
So - FTB - in this instance really means first 7 years.
First house - 3 years PPR - now sold, just started building, no mortgage for past 6 months.
Does the 7 years keep ticking along, or is it "paused" until the new mortgage commences?
Click to expand...
"Paused".
In our case - married couple, we are entitled to 20% of 16,000 per annum?
Click to expand...
Yes.

Auntie said:
I was wondering this too. I sold my first home after 17 months but did not drawdown second mortgage until 9 months after clearing the first one.
So on the date of the second drawdown was I 17 or 26 months into my 7 years???

Thanks
Click to expand...
The former. See above.
 
In our case - married couple, we are entitled to 20% of 16,000 per annum?

that is if your interest payments are that much. if your interest payments during the year are, say €10,000, then you would only qualify for that amount.
 
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