Will I lose my mortgage interest relief?

D

decbuck

Registered User
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I had a mortgage from November 2003 with tsb, then traded up and got a new mortgage from November 2007. I understand that I am eligible for mortgage interest relief from November 2007 for 7 years.

If I get a top up for house rennovation on my mortgage next month, would that affect my mortgage interest relief?

Thanks.
 
As far as I know, a top up isnt a new mortgage , so your 7 years is running from November 2007...

Its not the first purchase, but relief on a mortgage.

S.
 
Your interest relief started on the first mortgage in 2003 and is available for 7 years from that date assuming for some reason you stopped it. Under current rules you would cease to get MIR at the end of this year as 2003 would be deemed as year one. (Actually as you are finished this year any budget changes in decreasing it wont affect you)
 
Just to clarify I meant that the TRS starts from the date one applies for it. This normally is close to the time when one is drawn down. I'm assuming that the OP started getting TRS about the time or within a year of getting the mortgage.
 
decbuck said:
I had a mortgage from November 2003 with tsb, then traded up and got a new mortgage from November 2007. I understand that I am eligible for mortgage interest relief from November 2007 for 7 years.

If I get a top up for house rennovation on my mortgage next month, would that affect my mortgage interest relief?

Thanks.
Click to expand...

Mortgage Interest Relief (TRS) falls into two categories - First Time Buy (FTB) status and non First Time Buyer status.
FTB status applies to anyone who applied for their first mortgage in the last 7 years (2009 - 2003)
Non FTB status applies to anyone who applied for their first mortgage over 7 years ago (pre 2003)

By taking out your mortgage in Nov 2003 - your TRS commenced from that year, 2003, giving you a First Time Buyer status for 2003 - 2009.

Mortgage 1 TRS 2003 - 2007
Mortgage 2 (Trade Up) TRS 2007 - 2013
Mortgage 3 (Top Up) TRS 2009 - 2015

Mortgage 1 - You used 5 of your 7 years First Time Buyer status

Mortgage 2 - You used the last 2 of your 7 years FTB status
Since the last Budget, because you have taken out NEW loan (not a Switcher Loan) or Top Up, you are entitled to mortgage interest relief for 7 years from the date of first repayment on that loan, (2007 - 2013)
From Jan 2010 you will be considered a NonFTB and will get relief at 15% with a €3000 ceiling (single)

Mortgage 3 - If you take out a top up loan the same applies to this loan as with Mortgage 2 above.
You will 7 years on the top up from 2009 - 2015
From Jan 2010 you will be considered a NonFTB and will get relief at 15% with a €3000 ceiling (single)

I hope this makes some sense.

It's all on the Revenue site
http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html
 
+1

of course the mortgage top up has to be either for a house purchase, renovation or extension - you cannot release equity to buy a 50k BMW and then claim mortgage interest releif on that loan!!!
 
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