It's not the mortgage repayment amount but the interest portion that matters here. You are getting tax relief on the interest not on the overall repayment. If an individual pays less than €4K interest in the year then they only get 20% relief on whatever interest they do pay.I assume if you didn't have mortgage repayments of 8,000 in that year then you would only get relief on 20% of what you payed that year?
I'm fairly sure but not certain that you are wrong.If I am correct then the original poster would seem to be correct that you could lose out slightly by starting near the end of the year.
Good point - and perhaps an indication that I am wrong! Obviously you don't get mortgage interest relief on interest that you have not paid. I guess that you get the full year's worth of relief in year one if for the part year your interest bill will be at least the threshold amount (e.g. €4K for a sole FTB). For people starting in, say, July this is quite possible. For those starting later in the year perhaps not. But if this is the case the late starter does not lose out since while they do not get additional relief neither do they pay the interest in the first place! I think I'm confusing myself now...I'm sure you're right about people getting lump sums... Do they get that lump sum and continue to get relief from then on? Does that not mean they could be getting relief on interest they haven't paid?!?
. For those starting later in the year perhaps not. But if this is the case the late starter does not lose out since while they do not get additional relief neither do they pay the interest in the first place! I think I'm confusing myself now...
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