FTB Mortgage interest relief

chump

We all know the limits have increased, doubled in fact.
Now, my question is, I haven't got around to working it out yet,
On an average mortgage of 350k, how much will this person 'save', and how many interest rate rises of .25% does it take to nullify this (ie. what size interest rate increase does this cancel out?).

jimmycrackcorm

Question #2. for two single people on a joint mortgage do they both get the €8000 relief or do they need to be married to get €16000.

podge018

Is this for people who have not yet bought a house, or does it also apply to people who are currently living in their first house?

chump

Anyone who buys a home for the first time is elligible for this relief until 7 years have passed since the date of purchase. This is the case retrospectively also. I believe.

Example:
300k Mortgage
@ 4.25% (ECB 3.25 + 1)
30 year term
12 month interest payment (ignoring 1st month, so months 2-13) = 12,634.33

Person will pay over these 12 months, 12,634.33interest + 5,075.51principle. Average monthly mortgage, interest+principle = 1,475.82 (A)
Single person, 8,000 credit.
This person will save 1600 in a year, or monthly = 133.33 (B)
Monthly payment A-B = 1,342.5

Now increase rate by X%, what will they pay? (including interest relief)
.25 = 1,386.76
.5 = 1,431.64
.75 = 1,477.13 (see A)
1 = 1,523.28

So increasing rates by .75% nullifies the interest relief. Bearing in mind half the relief was available last year... I haven't done this yet, but it looks like it knocks off at least one .25% rate increase (.375% increase). For a single person, not married.

Amazingly we're getting this .25% when the ECB meet tomorrow.

http://www.jeacle.ie/mortgage/

godtabh

Some good sums there.

Maybe the two threads should be merged?

blahblah06

does this apply to ppl that bought there 1st house last yr ?

godtabh

blahblah06 wrote:

does this apply to ppl that bought there 1st house last yr ?

I think it applies to houses bought in the last 7 years