Mortgage interest relief is it gone?

spooky donkey

According to RTE web site " Mortgage interest relief will now only be available for the first seven years on principal private residences."

Does this mean that every one in their house over 7 years is looking this or are they giving 7 years from now.
To me it looks like I am about to loose my Mortage relief.

Does any know know what the story is here?

brian_rbk

from the irish times website:

Anyone who has been receiving interest relief for the past seven years will no longer be eligible after May 1st.

rapture 3

like a candle in the wind

Hooch

Crazy.

Cant we just pack up the whole cabinet into a little rubber dingy and send them out to sea with a banana each.
That'll save a couple of million each year.

Salome

I'm just about to take out a mortgage - does this mean that I'll get 7 years mortage relief?

niceirishfella

Salome wrote: »

I'm just about to take out a mortgage - does this mean that I'll get 7 years mortage relief?

no, cos thery have plans to abolish it altogether......you'd be well dvised to ensure you hav the ability to py the increased monthly payments ahead........anyways, you're simply mad to buy now......you'll regret it as this meausre the gov introduced today will suppress a market already fcuked.

Zzippy

niceirishfella wrote: »

no, cos thery have plans to abolish it altogether......you'd be well dvised to ensure you hav the ability to py the increased monthly payments ahead........anyways, you're simply mad to buy now......you'll regret it as this meausre the gov introduced today will suppress a market already fcuked.

Maybe he/she is building and not buying, still need a mortgage but don't pay over the odds...

dolliemix

niceirishfella wrote: »

no, cos thery have plans to abolish it altogether......you'd be well dvised to ensure you hav the ability to py the increased monthly payments ahead........anyways, you're simply mad to buy now......you'll regret it as this meausre the gov introduced today will suppress a market already fcuked.

how do you know they're planning to abolish it altogether?

My understanding, Salome, is that everyone will still receive mortgage relief for seven years, from the date of purchase.

omahaid

And what I read it is 7 years from when the mortgage is taken out. Does this mean I can sell my house, pay the mortgage, buy another house with a new mortgage and have 7 years of interest relief?

dolliemix

omahaid wrote: »

And what I read it is 7 years from when the mortgage is taken out. Does this mean I can sell my house, pay the mortgage, buy another house with a new mortgage and have 7 years of interest relief?

I hope not!!

Tippex

knowing the shower of pillocks in the Dail they wont have thought about the ins and outs of it.

niceirishfella

dolliemix wrote: »

how do you know they're planning to abolish it altogether?

My understanding, Salome, is that everyone will still receive mortgage relief for seven years, from the date of purchase.

Wrong.
And they are going to phase it out.

spooky donkey

Well Ive spoken to 2 friends in work and one thinks it will be a lot extra I will have to pay and another thinks it will not be a lot.
A guy I asked who knows the ins and outs of the property market said it goes down from 25% to 15% over those 7 years and that I would be at the bottom end of that scale being 9 years in my house, so I will see little difference. I hope he is right.

omahaid

spooky donkey wrote: »

Well Ive spoken to 2 friends in work and one thinks it will be a lot extra I will have to pay and another thinks it will not be a lot.
A guy I asked who knows the ins and outs of the property market said it goes down from 25% to 15% over those 7 years and that I would be at the bottom end of that scale being 9 years in my house, so I will see little difference. I hope he is right.

I'm in the same boat, and he's right, I was reading over the stuff I get and it does decrease for first time buyers over 8 years so I'm on the lowest now. Plus, that long ago house prices weren't too bad so....

BroomBurner

Am I the only one who thought it was only for seven years anyway? At least it went up in the last budget! Enjoy it while it lasts!

Butternutz

Hi all i have had my mortgage for 3 years and im considering to move it does this mean that i will lose my ability to receive the mortgage relief or will it carry on ???????

MickDundee

Butternutz
Hi all i have had my mortgage for 3 years and im considering to move it does this mean that i will lose my ability to receive the mortgage relief or will it carry on ???????

No, you will not lose it - the Mortgage Intertest Relief applies to you not your mortgage.

Say you took out your first mortgage in 2006, you are in Year 4 of you relief (22.5% on the Interest paid - up to €10,000 single - €20,000 married).

It doesn't matter how many times you buy and sell your home over the 7 years, you are still considered a First Time Buyer.

dvpower

Can anyone parse out this scenario.

A single person buys his first house 10 years ago and receives mortgage interest relief. He gets married two years ago, sells the house and buys a new house jointly with his partner. The partner hasn't had a mortgage before.

So, now that the relief is gone after 7 years, will this couple lose it, lose half of it, or keep it (for up to five more years)?

MickDundee

Dvpower,

Assuming you and your wife married in 2007 and applied for a mortgage together - she would have been classed as a First Time Buyer then and if you took out your first mortgage in 1999 you would have been classed as a Non FTB.

In 2009 your wife is in Year 3 of her relief (22.5%) you being a Non FTB get 15% (on interest paid up to €13,000).

After July you won't receive any more relief on the Interest you pay, but your wife will get 22.5% relief on the half of the Interest she's pays (up to €10,000)

Quack13

Ok, so lets say I get a mortgage within the next month...I will still get mortgage interest relief right?
Well at least until they abolish it.

Saruman

As a previous poster said, I thought it was only for first time buyers and only for 7 years anyway?

I got my house in 2005, I did not get the interest relief automatically so I applied on-line and I get money into my bank account each month.

Fingleberries

omahaid wrote: »

And what I read it is 7 years from when the mortgage is taken out. Does this mean I can sell my house, pay the mortgage, buy another house with a new mortgage and have 7 years of interest relief?

From what I read on the Revenue web site:

• If you have a mortgage starting in 2001 / 2002, then from May 1 you will no longer receive Mortgage Interest Relief
• If you have a mortgage for less than seven years, then you will receive interest relief for the remainder of the seven years then it will stop.
• If you have an existing mortgage, then switch lenders. The interest relief is only provided on the remaining amount of the initial 7 years.
• If you remortgage your property (to consolidate loans, build an extension, etc) then your 7 years relief starts again.

http://www.revenue.ie/en/press/budget/2009/supplementary/mortgage-interest-relief.html

To me that's a bit silly to say the least - it'll depress the existing market, because people will not be willing to pay the (overinflated) asking prices for properties because they'll be screwed seven years down the road. And to me it looks like the government are rewarding people who would continuously remortgage their property and thereby perpetuating the cycle of debt that is at the heart of the global situation.

Or do I have this completely wrong?

astrofool

If either buyer is not an FTB, then first time buyers interest relief does not apply to either.

If you buy/sell a house, you lose your FTB status also, and the increased level of relief.

Saruman

Oh wait are there two interest relief systems? A normal one and a first time buyers extra one?

faceman

I thought I understood this TRS stuff until yesterday. Lenihan sent confusing messages.

Im going to ring the revenue today and ask them.

fricatus

Echoing BroomBurner and Saruman above, I thought it was only for 7 years anyway! That was my understanding in 2006 when I bought my house - that the scheme was there to get FTBs over the first few difficult years.

A few weeks ago I was checking the rates and found the information in point 8 of this document: http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html

That reinforced (or confirmed?) my understanding that TRS applied for 7 years in all cases.

On what basis have people been receiving TRS beyond year 7 up to now?

xt40

nice guy always wrote: »

Crazy.

Cant we just pack up the whole cabinet into a little rubber dingy and send them out to sea with a banana each.
That'll save a couple of million each year.

or just stick the lot of them (and their families so we dont get their offspring ru(i)nning the place in 20 years) up against a wall and shoot the lot of them. itll never happen of course as we would need a spare wall that noone was using or at least someone who could build one.

faceman

there is an 18 minute wait time to speak to someone in the revenue! :eek:

jonski

Sorry , in way over my head here , friend just phoned me and asked .

200,000 euro morgage , 10 years ago , morgage interest going on the 1st of may . About how much worse off will he be in euros per month ??

astrofool

jonski wrote: »

Sorry , in way over my head here , friend just phoned me and asked .

200,000 euro morgage , 10 years ago , morgage interest going on the 1st of may . About how much worse off will he be in euros per month ??

What is left of the principal and what is the interest rate they are paying?

In your account, you should see TRS (mortgage interest relief) get put into the account before the mortgage payment comes out. The money put into the account is the amount he will be worse off by.

Lpfsox

wouldn't that depend on the rate of interest, and the type of mortgage being paid? How much of what's left is interest and how much is capital? Maybe (and I'm not trying to be smart here at all) his broker would be the best person to ask?