The Collector General with the Revenue Commissioners Gerry Harrahill has moved to clarify some of the issues surrounding the Governments’ changes to homeowners receipt of Mortgage Interest Relief.  

Mr Harrahill confirmed that “Irrespective of whether you have bought your first house, or it’s your second home or you have taken out a mortgage in order to renovate your home or build on an extension, from tomorrow you are only entitled to mortgage interest relief where you are within the first seven years of that particular mortgage.”

The determinating criteria is have you got your new mortgage in the last 7 years. Holders of mortgages over seven years old will no longer be entitled to mortgage interest relief on that particular loan. As such Revenue will be reviewing qualifying mortgages based on information that is currently available or will be made available from the lenders and Revenue has advised unless you receive a letter from Revenue you do not need to do anything.

 Clarifications of the scheme:

- First time buyers will receive Mortgage interest relief for the full 7 years of their mortgage

- Subsequent buyers (non-first time) will qualify for Mortgage Interest Relief from 7 years of the commencement of the mortgage on that property.

- If you have an unaltered mortgage on the property for longer than seven years then you won’t be entitled to mortgage interest relief from May 1.

- Future transference of mortgages (i.e. changing provider for better rate) shall not be seen as a new mortgage and therefore the interest relief will not be extended accordingly

- If after 7 years you remortgage your house you will be entitled to relief only on the difference between the original mortgage value and the new mortgage value

- If a remortgage took place within the first 7 years of the original mortgage and that 7 years has not elapsed, you are only entitled to relief on the full value for 7 years from the commencement of the original mortgage, and on the difference thereafter.

The Revenue will send letters to all those whose relief is due to be cut asking them to provide details of their mortgage and evidence that the money has been used for their main home rather than for other purposes.

Should you receive a letter from Revenue, the letters will seek details of when the homeloan was taken out, the loan account number, details of any switch of mortgage provider or any mortgage top-up and the percentage of the loan that was used to “purchase, repair, develop or improve” their main home. At this stage you may be asked to resubmit any claim you may have.