mortgage relief

flower tattoo

I've just heard that mortage relief is to be scrapped - how much does this cost a month (obviously i know it depends on the mortgage)

I also heard that it might not apply to first time buyer with original lender - although i owned and sold a couple of properties in england, i got my first irish mortgage in 2006 so am i classed as first time buyer??

Mr Freeze

It will cost be 177 a month if its true.

GerardKeating

flower tattoo wrote: »

I've just heard that mortage relief is to be scrapped - how much does this cost a month (obviously i know it depends on the mortgage)

I also heard that it might not apply to first time buyer with original lender - although i owned and sold a couple of properties in england, i got my first irish mortgage in 2006 so am i classed as first time buyer??

Yes, it was announced in the Emergency Budget about three weeks ago, it did actualy get a lot of media coverage at the time.

Basically, After May 1st, mortgage interest relief is only available to first time buyers for the first 7 years of their morgage.

"First time buyer" means exactly what it says on the tin, if you owned property before you bought your current house, you are not a first time buyer.

dotsman

There was another change to Mortgage interest Relief that did not get the media attention needed and will cause a lot of confusion.

Basically, anybody who has changed their home, or renegotiated their mortgage will have their relief suspended from this Friday (May 1st), even if they are still within the 7 years and will need to reapply if they are to get it back.

Most people who are in this demographic are not aware of the change. For those who get the relief applied directly to their loan could end up in arrears as their standard repayment will no longer cover the full amount.

To me, it just seems like a ploy by the government who hope that people will not notice or will not bother reapplying

Thoie

dotsman wrote: »

Basically, anybody who has changed their home, or renegotiated their mortgage will have their relief suspended from this Friday (May 1st), even if they are still within the 7 years and will need to reapply if they are to get it back.

Do you have any links or further details on that? I'm still a FTB, and still in the first home, but switched mortgage after only 2 months when I originally bought.

Chunkylover

Im a 2nd time buyer, had mortgages for about 3 years but as its my 2nd house Im not classed as a ftb so it looks like my mortgage is going up from 850 to around 1100, will I have to give the revenue a shout in the morning to reapply or will they automatically look at each case

A piece on rtes aertel mentioned that a govt source said that only a small number of cases would be affected.

Ogham

More information here http://mortgages.blogs.ie/2009/04/29/possible-suspension-of-mortgage-interest-relief/

anotherlostie

According to that link more than FTB's are entitled:

Non-First Time Buyers are only entitled to the relief after 1st May 2009 where they are in the first seven years of the mortgage on a qualifying loan.

But it does not say what a qualifying loan is.

I bought my first home in 2001, sold it in 2006 and moved into my current home a couple of months later. I have no other property. So I'm wondering do I still qualify for TRS? If I was still a FTB, I would have exceeded the 7 years, but now I am only in Year 3 of my loan.

rameire

if you are in the following bands you will continue to get trs.
25%, 22.5%, 20% no matter what.

if you are a 15 percenter, more than likely your trs will stop so no trs for you in may.
if you have not topped up or moved house in the last 7 years, but have had a mortgage for more than 7 years, say bye bye to trs.

if you have moved or topped up in the last 7 years, you will hopefully receive trs again from june.

dotsman

anotherlostie wrote: »

According to that link more than FTB's are entitled:


But it does not say what a qualifying loan is.

I bought my first home in 2001, sold it in 2006 and moved into my current home a couple of months later. I have no other property. So I'm wondering do I still qualify for TRS? If I was still a FTB, I would have exceeded the 7 years, but now I am only in Year 3 of my loan.

It's not very clear, but my interpretation is that you don't qualify as it is more than 7 years since you bought your first home. My understanding of a "qualifying loan" is that it is "a loan used to purchase your permanent place of residence and it has been less than 7 years since you first purchased a home". I could be wrong on that, so hopefully someone will be able to clarify.

rameire

anotherlostie wrote: »

According to that link more than FTB's are entitled:


But it does not say what a qualifying loan is.

I bought my first home in 2001, sold it in 2006 and moved into my current home a couple of months later. I have no other property. So I'm wondering do I still qualify for TRS? If I was still a FTB, I would have exceeded the 7 years, but now I am only in Year 3 of my loan.

you are in year 4
so you will receive trs at 15% up to the ceiling of 3000 per person until 2012.
more than likely your trs will suspend in may but return in june.

cheerspal

I have a house with my girlfriend, I am a first time buyer but she is not a first time buyer and still has her apartment. I applied for the mortgage relief in my name and have been getting it for the past 2 years. I have not remortgaged, moved house or changed provider.

Does this mean that we will lose our mortgage relief this Friday?

Its quicker getting an answer here than trying to ring the Revenue.

Thoie

cheerspal wrote: »

Its quicker getting an answer here than trying to ring the Revenue.

:pac:

True, but do bear in mind that this is the internet, and everything should be taken with a pinch of salt

MickDundee

cheerspal wrote: »

I have a house with my girlfriend, I am a first time buyer but she is not a first time buyer and still has her apartment. I applied for the mortgage relief in my name and have been getting it for the past 2 years. I have not remortgaged, moved house or changed provider.

Does this mean that we will lose our mortgage relief this Friday?

If you took out your mortgage 2years ago, 2007 - you are in year 3 of your mortgage getting Mortgage Interest Relief at 22.5% up to a max of €10,000. You therefore are classed as a FTB and will receive Relief until 2013.

Your girlfriend, on the other hand, if she is claiming Mortgage Interest Relief on her apartment for over 7 years (before 2003) she will be cut off from May 1st.
Would it not be in your girlsfriends interest to put the house as her PPR? Is the apartment an investment property?

poindexter

i got onto the property ladder in 2005, and re-mortgaged in 2007. am i still a first time buyer or will i lose the relief due to re-mortgaging????

ferga_com

If you're first property purchase was 2005, you're still a First Time Buyer for tax relief purposes.

That said, you will shortly lose the TRS and have to re-apply for it.

MickDundee

ferga_com wrote: »

That said, you will shortly lose the TRS and have to re-apply for it.

That's not correct - if he is classed as a FTB (start year 2005) he will not be affected by the changes of the 1st of May. That only applies if you are outside the 7 year mark (NonFTB).

Also, Revenue haven't announced that anyone will have to reapply. They have said they will do the investigating and then recommence the eligible mortgage loans.

Ludo

Another fine mess by FF with this one. Talk about confusing!

Wife purchased an appt about 15 years ago. We sold that and bought a house in 1999. Had to move again so sold up in 2007 and purchased a new one. I am guessing our Mortgage Interest Relief will be gone but not sure really.

Why is nothing simple with this government. Just look at that 200 euro parking levy they were going to bring in...made a complete mess of that also.

Why on earth do people vote for these idiots who are obviously way too incompetent to run a corner shop never mind a country.

MickDundee

Ludo wrote: »

Had to move again so sold up in 2007 and purchased a new one. I am guessing our Mortgage Interest Relief will be gone but not sure really

You'll be cut off from tomorrow, temporarily, but should have your 2007 Mortgage reinstated for Relief for 7 years until the end of 2013 at the 15% rate.

ferga_com

MickDundee wrote: »

That's not correct - if he is classed as a FTB (start year 2005) he will not be affected by the changes of the 1st of May. That only applies if you are outside the 7 year mark (NonFTB).

Also, Revenue haven't announced that anyone will have to reapply. They have said they will do the investigating and then recommence the eligible mortgage loans.

Apologies - still trying to get my head around this.