Following the announcement in Budget 2014 of the new Home Renovation Tax Incentive Scheme, Bank of Ireland announced today (30 October 2013) that it has launched a new €75million fund to support homeowners seeking to make improvements to their home.
The new tax incentive scheme allows consumers claim back the VAT paid on qualifying work costing over €5,000 and up to a maximum of €30,000, completed by a registered builder. This will result in a tax credit of up to €4,050 which will be granted in the two years after the year in which the work was carried out.
Gavin Kelly, Director Consumer Banking, Bank of Ireland, said “We welcome the Home Renovation Tax Incentive Scheme and believe it will support economic growth and employment in the Irish construction sector in the coming years. Bank of Ireland is delighted to play its part by providing this new €75million fund. Homeowners can choose a borrowing option that best suits their requirements and circumstances – a personal loan over a term of up to ten years or, for Bank of Ireland Mortgage customers, a mortgage top-up spread over the longer term.
The mortgage top-up for example, means that a customer can improve their home to the tune of €20,000 and spread the repayments over say 20 years for about €125 per month. And homeowners can also get a tax credit back into their pocket under the Government scheme for qualifying improvement works.”
Bank of Ireland currently provides circa four out of every ten mortgages and this new fund launched today is in addition to their €2 billion fund for first time buyers and people seeking to move home announced in July.
“This new €75million fund further confirms Bank of Ireland’s commitment to supporting homeowners whether they are buying, moving or improving. Together with our extensive branch network, our Mobile Mortgage Manager service and our phone and online services, it clearly demonstrates that Bank of Ireland wants to meet customers’ needs, anytime, anywhere” Kelly concluded.