First-time home buyers benefit ‘could be wiped out’

FIRST-TIME buyers face lower mortgage repayments as a result of the changes in yesterday’s Budget.

But Fine Gael warned the gains could effectively be wiped out if the European Central Bank raises interest rates today as expected.

Finance Minister Brian Cowen had signalled in the weeks leading up to the Budget that he would not cut stamp duty, even though Fianna Fáil’s coalition partners, the PDs, were seeking reductions.