Thousands of you are due to wave bye bye to your mortgage tax relief payments but there"s still a bit of confusion over exactly who will keep it and who will lose it.
So, who qualifies? Tax relief is only available to those:
-
Within the first seven years of their mortgage
-
Who have within the past seven years have taken ... out a new mortgage
-
Who have topped up their mortgage to do work on their home
However, dependant on your status i.e. first time buyer, non first time buyer etc different relief rates will apply. For first-time buyers the rate of tax relief is 25% for the first two years, 22.5% for years 3-5 and 20% for the last 2 years of the mortgage. For non first time buyers e.g. those who sold their house & took out a new mortgage to buy a new house, the rate of relief is 15% over the 7 years. If you have topped up your mortgage to do work on your home but have had your mortgage for more than 7 years then you will only get relief on the new portion of the loan.
And who doesn"t qualify? Relief will not apply to anyone who:
-
Has received mortgage relief over the past 7 years on the same loan then, sorry to say, you are no longer entitled to relief
-
Switches lender to benefit from better rates
-
Tops up their mortgage to pay for something not property related
Advertisement
