Mortgage Interest Relief extended for those in negative equity in budget

veryangryman

Ive looked through internet etc for information on this with no joy.

About to begin year 4 of mortgage and (surprise surprise) in negative equity.

The finance page mentions that it will continue till 2017. Is this just indicative of the fact that it no longer is being provided thereafter? Or can someone gain from it for more than the 7 years?

RebelRebel

It seems like it is being abolished completely in 2017 so you won't be able to benefit from it any longer than that. It's hard to get any info on this though.

How will negative equity be determined? It's also unclear will this apply to anyone who is in negative equity whose mortgage interest relief is is due to expire in 2010 or later?

seamus

RebelRebel wrote: »

It seems like it is being abolished completely in 2017 so you won't be able to benefit from it any longer than that. It's hard to get any info on this though.

How will negative equity be determined? It's also unclear will this apply to anyone who is in negative equity whose mortgage interest relief is is due to expire in 2010 or later?

This extension will apply to everyone whose mortgage interest relief is due to expire in 2010 or after. The wording in the document was confusing because he said the measure was to help those in negative equity, however the document published by the dept of finance clearly states that it will apply to everyone, not just those in negative equity.

The plan here is to abolish mortgage interest relief by 2017. What you will find is that as the years go by, the length and amount of the relief will drop such that your relief will end in 2017. So if you take out a mortgage in mid-2015, you will get interest relief until 31st December 2016.

I imagine this is what it will look like:

Blackjack

How do they intend to determine if someone is in Negative equity?

Ste.phen

Blackjack wrote: »

How do they intend to determine if someone is in Negative equity?

They don't, it's not relevant to the relief, everyone gets it. What he said was it would help those in Negative Equity. (and everyone else, i guess)

Westwood

ok so happy days. mine was due to run out next year and now ive another 7 years left allbeit getting smaller every year. tis grand this fine country of ours their shall be drink tonight!!!

Blackjack

Ste.phen wrote: »

They don't, it's not relevant to the relief, everyone gets it. What he said was it would help those in Negative Equity. (and everyone else, i guess)

Cool, thanks

veryangryman

Westwood wrote: »

ok so happy days. mine was due to run out next year and now ive another 7 years left allbeit getting smaller every year. tis grand this fine country of ours their shall be drink tonight!!!

Sounds too good to be true. Thats like an extra 4 years on mine. Swings and roundabouts these budgets i guess...