Extension of mortgage interest relief to 2020 will help hard pressed families – Connolly

Fianna Fáil General Election candidate for Galway West John Connolly has described the party’s proposal to extend mortgage interest relief for owner occupiers to 2020 as a major boost for hard pressed families.

Mortgage interest for home loans is currently available to people who bought their home between 2004 and 2012. 310,400 mortgage holders are in receipt of mortgage interest relief on their home.

The vast bulk of these bought between 2004 and 2008. These families are set to lose tax relief on their monthly repayment when mortgage interest relief is phased out by the end of 2017 — the loss of an average of €747 in the year.

John Connolly said, “This payment is a very important financial support for families, particularly those struggling with sky high variable mortgage rates. The process of withdrawing it from existing homeowners will be 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 are committed to helping families in Galway struggling to meet the cost of their mortgage. In this context Fianna Fáil believes now is not the right time to remove this very important financial support.

“That is why Fianna Fáil will retain the Mortgage Interest Relief scheme for existing mortgage holders to 2020. This will cost €166 million and this is provided for in our fully costed manifesto. Combined with our First Time Buyers Savings Scheme this will secure home ownership for an entire generation of young families in Galway and across the country.”

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