Mortgage burden on homeowners targeted

AMONG the measures introduced by Britain’s chancellor of the exchequer Alistair Darling aimed at limiting the mortgage burden on homeowners includes a limit on the mortgage interest scheme which was raised to £200,000 (€235,350) from £100,000.

The mortgage rescue scheme, which involves the council, association, or lender purchasing a person’s property and allowing them to live there in exchange for rent is to be extended to cover those with second homes.

The government has also made available an additional £775 million for new homes and modernisation programmes to be directed towards social housing units was also made available.

FIRST-TIME homeowners in the republic were the big winners in the budget and they will see a 5% increase in their mortgage interest relief which will be funded by a 5% cut in the relief for those in their second or subsequent home.

In the first two years, the tax credit is calculated at 25% of the interest paid and in years three to five, the tax credit is calculated at 22.5% of the interest paid, both subject to the maximum interest available for relief.

Subsequently, the tax credit is computed at 20%.