200,000 mortgage holders to benefit from temporary interest rate relief 

From Wednesday onwards, qualifying taxpayers can submit claims in respect of the Mortgage Interest Relief for the previous tax year through Revenue. Picture: Denis Minihane.

More than 200,000 mortgage holders are set to benefit from an interest rate relief which comes into effect today as a result of Budget 2024.

From Wednesday onwards, qualifying taxpayers can submit claims in respect of the Mortgage Interest Relief for the previous tax year through Revenue. 

The relief will be equal to 20% of the increased interest paid in 2023 compared to 2022, or €1,250 - whichever is the lesser.

The relief is a temporary one-year scheme and it is estimated that approximately 208,000 mortgages are eligible for it. 

Those who qualify for the scheme must have an outstanding mortgage balance of between €80,000 and €500,000 on December 31, 2022, and interest on the loan must have been paid in both 2022 and 2023. 

The interest on the mortgage must also have increased from 2022 to 2023. 

Announcing the scheme, Finance Minister Michael McGrath said the Government is "acutely conscious of the impact increases in interest rates have had on many mortgage holders". 

"In light of this, I introduced a temporary one-year, targeted Mortgage Interest Tax Relief scheme as part of Budget 2024," he said. 

"This forms a further element of a comprehensive package of cost of living supports in Budget 2024 which include energy credits, income tax and USC reductions, and welfare increases which are helping households throughout the country."