Interest Relief For New Mortgage

lollymob

Hi all, I'm wondering if anyone can give me some information. We are hoping to stsrt a self build by the end of the year. There is a delay with the planning permission at the minute but it will hopefully be granted in the next couple of weeks. I'm aware that the mortagage interest relief will be gone by the end of December and I am very eager to get a mortgage sorted before that. I'm just wondering how long does it take to be approved or rejected in general? Do we automatically qualify for the relief if our mortgage is approved before the end of December or do we have to make a drawdow before the end of December to qualify?
Thank you in advance for any help.
Lollymob

howamidifferent

lollymob wrote: »

Hi all, I'm wondering if anyone can give me some information. We are hoping to stsrt a self build by the end of the year. There is a delay with the planning permission at the minute but it will hopefully be granted in the next couple of weeks. I'm aware that the mortagage interest relief will be gone by the end of December and I am very eager to get a mortgage sorted before that. I'm just wondering how long does it take to be approved or rejected in general? Do we automatically qualify for the relief if our mortgage is approved before the end of December or do we have to make a drawdow before the end of December to qualify?
Thank you in advance for any help.
Lollymob

It would be based on drawdown.

zenbuffy

The last advice I received from my bank was that it was on payment, not drawdown - i.e. if you were to avail of a moratorium for the first few months of payment (as offered to first time buyers by some banks), even if drawdown was in 2012, if your first payment was in 2013, it wouldn't count.

Citizens information also seems to state this: "Your entitlement to mortgage interest relief begins in the first year in which you make a payment of qualifying interest" (http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_interest_relief.html)

lollymob

zenbuffy wrote: »

The last advice I received from my bank was that it was on payment, not drawdown - i.e. if you were to avail of a moratorium for the first few months of payment (as offered to first time buyers by some banks), even if drawdown was in 2012, if your first payment was in 2013, it wouldn't count.

Citizens information also seems to state this: "Your entitlement to mortgage interest relief begins in the first year in which you make a payment of qualifying interest" (http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_interest_relief.html)

Thanks a mil for that info zenbuffy! Do you know how long the whole drawdown business takes? Could we start making payments as soon as we draw down 1st stage payment! If we are able to do so do we qualify for interest relief for entire mortgage or just the 1st draw down? Sorry for all the questions!

zenbuffy

I think you can start making payments pretty much as soon as you drawdown, so for most people, drawdown and first payment are much the same - I just thought it might help to point out that it's the payment they look at, not the drawdown

How long it all takes depends on lots of things - how quickly you can get all the required information to the bank, how quickly your solicitors pursue it, etc. Worth telling your solicitors that you are eager to close before the end of the year because you want to ensure that you get the relief, and hopefully they can advise you on the best way to get that done.

lollymob

zenbuffy wrote: »

I think you can start making payments pretty much as soon as you drawdown, so for most people, drawdown and first payment are much the same - I just thought it might help to point out that it's the payment they look at, not the drawdown

How long it all takes depends on lots of things - how quickly you can get all the required information to the bank, how quickly your solicitors pursue it, etc. Worth telling your solicitors that you are eager to close before the end of the year because you want to ensure that you get the relief, and hopefully they can advise you on the best way to get that done.

Thanks so much for that, you've been more helpful than my bank!!:)