Switching Mortgage - Interest Relief

Benny Cake

I am just coming to the end of a 2 year fixed rate mortgage and will be hit by a siginficant hike in repayments. As this is my first mortgage I currently qualify for the first time buyers rate of interest relief, my question is this; if i switch mortgage companys to get the best deal will i lose my first time buyers status and as a result have my interest relief reduced to the standard rate???

Victor

D_Red_Army wrote:

if i switch mortgage companys to get the best deal will i lose my first time buyers status and as a result have my interest relief reduced to the standard rate???

To my knowledge, no you won't lose your FTB status, but check with your solicitor.

bbbbb

If you mean TRS, then no. It's for 7 years (I think), irrespective of whether you change properties and/or mortgage provider.
Note that you'll have to resubmit the TRS1 forms. When I did this there was a bit of a delay with processing, so a couple of months without TRS, which I then got back with the first payment.

The_Conductor

bbbbb wrote:

If you mean TRS, then no. It's for 7 years (I think), irrespective of whether you change properties and/or mortgage provider.
Note that you'll have to resubmit the TRS1 forms. When I did this there was a bit of a delay with processing, so a couple of months without TRS, which I then got back with the first payment.

You can change mortgage supplier. You cannot however change properties (as you would by virtue of the change in property no longer be classified as a First Time Buyer). Often when switching, the new lender may provide a sum (often a flat 1000) towards the legal costs incurred with the change, and may submit all the TRS paperwork on your behalf.

Shane

Benny Cake

thanks, much appreciated:D

PMC999

smccarrick wrote:

You can change mortgage supplier. You cannot however change properties (as you would by virtue of the change in property no longer be classified as a First Time Buyer). Often when switching, the new lender may provide a sum (often a flat 1000) towards the legal costs incurred with the change, and may submit all the TRS paperwork on your behalf.

Shane

Actually you can change property and still be classified as a first time buyer for Mortgage TRS relief. I can't find the relevant link on the Revenue website but did find this from the Irish Independent "You retain your first-time buyer status even if you change house or change mortgage provider within seven years. And you retain that status if you re-mortgage and as long as the extra money is used for work on your private residence, according to tax director with Ernst & Young, Aileen Downes"

http://www.unison.ie/business/personalfinance/stories.php?ca=259&si=1743961