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FTB Mortgage interest relief

  • 06-12-2006 7:52pm
    #1
    chump
    Closed Accounts Posts: 3,807 ✭✭✭


    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?).


Comments

  • #2
    jimmycrackcorm
    Registered Users Posts: 14,329 ✭✭✭✭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.


  • #3
    podge018
    Registered Users Posts: 1,815 ✭✭✭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?


  • #4
    chump
    Closed Accounts Posts: 3,807 ✭✭✭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/


  • #5
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,204 Mod ✭✭✭✭godtabh


    Some good sums there.

    Maybe the two threads should be merged?


  • #6
    blahblah06
    Registered Users Posts: 4,306 ✭✭✭blahblah06


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


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  • #7
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,204 Mod ✭✭✭✭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


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