AS PART OF Budget 2012, the Government has decided to boost mortgage interest relief for first-time buyers getting into the market next year.
Finance Minister Michael Noonan also announced changes to mortgage interest relief offered to existing homeowners.
However, some have expressed reservations about the scheme. Economist Ronan Lyons told TheJournal.ie that it could risk causing further problems within the country’s banking system by making the cost of borrowing “incredibly cheap” when the root problem was not the cost of credit – but the lack of it.
And, while the move will be a bonus for struggling homeowners and an incentive for first-time buyers alike, Noonan has also warned that all mortgage interest relief will be phased out by 2018.
Today we’d like to know – do you think it’s a wise move to encourage new buyers onto the Irish property ladder?