As I announced in the Budget last Wednesday, the ceiling on mortgage interest relief for first-time buyers is being increased from €4,000 per year in the case of a single person and €8,000 per year in the case of married or widowed persons to €8,000 and €16,000, respectively, with effect from 1 January 2007. This increased support will be available to all those currently in receipt of first-time buyers relief who are in the first seven years of their mortgage. A "first time buyer" is an individual not previously entitled to relief in respect of interest paid on a loan used for the purchase or improvement of a sole or main residence.
Where, within the first seven years, a person switches his or her mortgage to benefit from a lower interest rate, he or she remains a first time buyer in respect of the remainder of the seven-year period which commenced on taking out the original loan. Accordingly, in the question posed by the Deputy, the first time buyer stands to benefit from the increased relief for the remainder of this seven year period. Of course, the extent to which such a person will be in a position to avail of the increased level of relief will depend on the extent to which interest arises on his or her mortgage.
I might also mention to the Deputy that the ceiling on mortgage interest relief for non first-time buyers is also being increased to €3,000 in the case of single person and to €6,000 in the case of married or widowed persons.