Alex is a non-first time buyer who purchased his home to live in, back in January 2006. In 2019, mortgage interest relief is at what percentage?

• A. Zero percent
• B. 30%
• C. 15%
• D. 25%

Answer: (C)

Mortgage interest relief on a principal private residence lets you reduce your tax by a portion of the mortgage interest you pay on your main home. The rate of this relief has been reduced in steps over the years, with transitional rules applying to older loans. For someone who bought their home before 2006 and still lives in it, the relief available in 2019 was 15%. So you can offset 15% of the mortgage interest paid that year against your tax bill, subject to any caps and conditions that apply to the principal private residence. The other percentages would reflect different years or different circumstances (e.g., newer loans or rental properties), but for this scenario in 2019, 15% is the applicable relief.