It is confirmed that mortgage interest relief is set to be extended in 2018. Mortgage interest relief for home loans is currently available to people who bought their home between 2004 and 2012 with nearly 300,000 mortgage holders currently in receipt of relief.
In the course of the negotiations with Fine Gael on the Confidence and Supply Arrangement that underpins the current Dáil, Fianna Fáil insisted on an extension of the mortgage interest relief scheme which was due to end completely at the end of 2017.
The Government has now confirmed that mortgage interest relief is set to be extended beyond 2018. This is a positive development for the nearly 300,000 mortgage holder’s right across the country, many of whom are based in Kildare. Until Fianna Fáil secured the extension of the scheme, these families were set to lose tax relief on their monthly repayments by the end of 2017. This would mean the loss of an average of €600 per annum per household.
This tax relief is an important financial support for families, particularly those strolling with high variable mortgage rates. The sudden withdrawal of this relief from existing homeowners would have represented a severe blow to families who bought their home when prices were at their highest. Many of these families are now juggling huge outgoings including their monthly mortgage, childcare costs and medical bills.
We will insist that Fine Gael live up to the commitments it made through the Confidence and Supply Arrangement. Securing an extension of mortgage interest relief will provide further breathing space for hard-pressed families. This is particularly important in the context of recent comments by the ECB and Federal Reserve which both indicated that interest rate rises could be on the cards within the next couple of years.