Mortgage Interest Relief (MIR) is currently available for mortgage loans taken out between 1 January 2004 and 31 December 2012, which were used for the purchase, repair or improvement of a principal private residence. The rate of relief depends on whether the loan was taken out by a first-time buyer, the date of purchase and the length of time the loan has been held. The rate of relief is also subject to a maximum annual cap. MIR was due to cease at the end of 2017 but was extended in Finance Act 2017 to 31 December 2020 on a tapered basis for the remaining recipients of the relief. The effect of the measure was to provide for 75% of the 2017 relief in 2018, 50% in 2019 and 25% in 2020, before expiring on 1 January 2021.
The cost of the introduction of a new scheme of MIR would depend on the uptake, as well as the eligibility criteria and rate(s) of relief involved. It is therefore not currently possible to estimate the cost of the Deputy’s proposal.