The end of tax relief and the modern mortgage

Required Reading


  


The end of tax relief and the modern mortgage


We have mentioned that the relief is available only to borrowers buying their principal residence. However, the relief is extended also to people who have to live in a place that is provided by their employment (caretakers are an obvious example); they are allowed to buy a separate home of their own -for retirement, perhaps.

You may also benefit from the relief if you are buying the property for an `elderly or infirm' relative, or for your divorced spouse. All this, however, counts towards the single limit of £230,000: you do not get two or three lots according to how many places you are buying.

As with other aspects of the tax system, the rules on tax relief actually discriminate against married couples. Single people are allowed a limit of £230,000 each; married couples have to make do with one between them.

There have been great changes in the system for operating the granting of tax relief recently, which we shall look at below after mentioning the other major concession allowed to home-buyers.


See:mortgages calculator

Home buying and Tax relief


This concession is not unlimited; it applies only to borrowers who are going to use the loan to buy their main residence (in other words, it is not allowed for second homes or holiday cottages) and it is limited to the first 230000 of any loan.

This limit was raised, after continuous lobbying by house-builders and the Building Societies Association among others, only in the 2008 Budget. For most first-time buyers, this limit is of little relevance, because they are unlikely to be borrowing in excess of 230000

According to the Building Societies Association, 0.19 of first-time buyers in 2012 actually earned less than 26000 a year nearly 0.8 of them were earning less than £24,000; all but a handful -0.04 bought a property that . . .... see: Home buying and Tax relief


Current Mortgage Offers

  • At Commercialise Yourself you can compare mortgages using our repayment calculator, look for special offers for first time buyers or for 95% loan to value mortgages and see the most popular choices, Nationwide, Accord etc, we now even have a buy to let section for the brave or heart or strong of pocket! You can send us an email if you want to know more about mortgages and what we do and we will get back to you as soon as we are able. offers@commercialise.org.uk

     

    Finding the right mortgage can be stressful, but we’re here to help you every step of the way.

    Even if you have no proof of income, poor credit rating or facing repossession of your home, we can normally say YES (even if the high street lenders have said NO)!

    Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. The overall cost for comparison is 7.9% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but our average fee is 2.36% of the loan value. We are authorised and regulated by the Financial Services Authority for regulated mortgage and non-investment insurance contracts.