Interest rate relief to end for some

[Ringo]

http://www.rte.ie/news/2009/0430/mortgage.html

http://www.rte.ie/news/2009/0429/revenuestatement.html

According to the Revenue Commissioners, the move means mortgage interest relief will be suspended for 321,000 of the 562,000 people currently receiving the entitlement.

Of those, Revenue says 57,000 people will definitely no longer be entitled to it.

It says it is in the process of working with mortgage lenders in establishing who is and who is not entitled to the relief.

Mortgage holders who have the relief suspended but are entitled to continue to receive it will have it reactivated in June, all arrears included.

220,000 first time buyers will not be affected by tomorrow's move and will continue to receive the entitlement.

Another balls up by the government. They didn't think this one through.

[pete]

We have gone from a system where you applied to the Revenue for relief, then it was deducted at source & now back to what seems like a combination of both.

First Time Buyers who are within the first seven years of their mortgage will continue to get the relief automatically until the end of the 7th year of their mortgage.

Non-First Time Buyers are only entitled to the relief after 1 May where they are in the first seven years of the mortgage on a qualifying loan.

Revenue has been working with the lenders to identify those accounts where there will be an entitlement to mortgage relief under the new rule. Until that entitlement can be established mortgage interest relief is not being paid from 1 May.

[Wolfie]

Will I lose the TRS lads?

I took out my first mortgage in 2001.

On moving house in 2006 - the first mortgage ended and I took out a new mortgage with the same lending agency.

In other words, will Revenue consider me 8 years into mortgage repayments regardless of how many I've had or will I be considered as 3 years into my "new" mortgage and still reckonable for Mortgage Interest Relief?

[Ringo]

You appear to have to be able to prove that all the mortgage is for the house & not a credit card pay off or car loan pay off etc.

[pete]

In other words, will Revenue consider me 8 years into mortgage repayments regardless of how many I've had or will I be considered as 3 years into my "new" mortgage and still reckonable for Mortgage Interest Relief?

I doesn't seem very clear. Not sure if you get interest releif for first 7 years as a FTB or is it the first 7 years of every house you buy. If it was the later is that some way of getting people to move homes & pay stamp duty.

[Wolfie]

From Revenue Website.

"Switching lender or mortgage type to achieve a better interest rate does not equate to a new loan. However, moving home and taking out a new mortgage for this home with a new or existing lender is eligible for relief for 7 years from the date of first payment on the new home loan".

[pete]

"Switching lender or mortgage type to achieve a better interest rate does not equate to a new loan. However, moving home and taking out a new mortgage for this home with a new or existing lender is eligible for relief for 7 years from the date of first payment on the new home loan".

What an idiotic system. If you move house every & years you get interest relief indefinitely. TBH they should just give it to FTB for 7 years & nothing after that. Property incentives like this have contributed to the current situation.

[Longfordian]

What an idiotic system. If you move house every & years you get interest relief indefinitely. TBH they should just give it to FTB for 7 years & nothing after that. Property incentives like this have contributed to the current situation.

Who would be likely to benefit from such a system?. Builders and the Government..quelle surprise as they say in Spain.

[dahamsta]

I thought the new system applied only to FTB.

[anto1208]

Will I lose the TRS lads?

I took out my first mortgage in 2001.

On moving house in 2006 - the first mortgage ended and I took out a new mortgage with the same lending agency.

In other words, will Revenue consider me 8 years into mortgage repayments regardless of how many I've had or will I be considered as 3 years into my "new" mortgage and still reckonable for Mortgage Interest Relief?

TRS only applies to first time buyers in the first 7 years of their mortgage since your in your 8th year and on your 2nd house i wouldnt think you'll keep on getting it.

Ive moved from one bank to another so they will cut me off and ive to reapply.