Government suspending mortgage relief...

Darragh29

Just listening to the news here, if what I am hearing here is correct and I'm understanding it right, apparently the government have now decided to suspend mortgage relief for anyone but first time buyers who have bought within the last 2 years.

This would appear to mean that if you are not a first time buyer or you did not take out a mortgage on the basis of being a first time buyer within the last two years, then your mortgage relief is being suspended with effect from 1st May until it is "re-evaluated"... Someone please tell me that I have this completely wrong!

I must have this wrong, they can't be going to suspend mortgage relief on anyone except a FTB who bought within the last two years???

Darragh29

I'm listening to this on Q102 and it is true... This is the straw that will break the camels back...

gandalf

No reports online about it yet?

Who is saying this, is it a government source?

Darragh29

gandalf wrote: »

No reports online about it yet?

Who is saying this, is it a government source?

Not yet, but this is it for me, I'm not having it and that's the fu*king end of it as far as I'm concerned.

gazzer

Got this from another website forum

Mortgage holders in for shock on Friday

Most mortgage holders are in for a shock, as even those who are
within the seven-year window will have their mortgage tax relief
cancelled on Friday

That's according to Ciaran Phelan of the Irish Brokers
Association, who said that Minister Lenihan in his Budget three
week's ago said that all qualifying mortgages will receive Tax
Relief at Source (TRS) for the first seven years of the mortgage
only

However, "due to the Government's haste", many first time buyers
and other struggling mortgage holders who are still within the 7
year window, will have their tax relief cancelled on Friday, said
Mr Phelan

"We understand that the Revenue are pulling the Tax Relief at
Source on 1st May from the vast majority of mortgage holders,
except for the very obvious first time buyers i.e. those who are
still in their first home with the original mortgage lender. The
relief is being suspended for all others. Those for example, who
are still within the first 7 years of their mortgage, but heeded
good advice and shopped around for a better mortgage deal are in
for a shock when their mortgage payment shoots up in the very
month that their income will be slashed by increased taxes. Also
those people who have topped-up their mortgage in the first 7
years will be axed for a period of time," he said

Revenue had said that first-time buyers, who have not moved house
or re-mortgaged or re-financed will continue to receive tax relief
at source in the usual way

All borrowers currently receiving TRS are having their relief
suspended immediately, pending a review of their entitlements by
the Revenue under the amended TRS scheme

However while the Revenue say that they are "committed to carrying
out a review of all affected accounts and will at a later date,
reinstate TRS on all accounts that continue to qualify for relief"

They 'aspire' to have this completed by June 09 but say 'this
timeframe is purely indicative at this stage and given the number
of accounts involved across all institutions this review may take
longer to complete'

"Our concern is that many people's financial situation has already
come under serious strain over the last 12months. Some of these
mortgage holders that will be affected are stuck on fixed rates
and haven't even got the benefit of the recent rate reductions,"
said Mr Phelan

"The onus will now fall to each household to ensure that the
Revenue commissioners reinstate their TRS at sometime in the
future. Brokers throughout the country are standing by to give
assistance to all mortgage holders to ensure that they are
claiming and receiving the correct amount of tax relief.

As this is imminent, people who pay the net amount into their
mortgage account will clearly have a shortfall. Their mortgage
direct debt could bounce or the lack of funds may impact other
finance payments and this could affect their credit rating. It is
imperative that people are aware of this and act accordingly

hefty_langer

It was reported on newstalk as the source being the Irish Mortgage Institute or some such body... This is nuts that they try and slip this in AFTER the budget! I can see some serious public backlash on this...

LostinBlanch

Just heard about this on Newstalk now.

It won't be the straw that broke the camels back. People will just mutter and groan and whinge but do nothing about it.

jhegarty

If this doesn't bring down the government , I don't know what will.

http://www.businessworld.ie/livenews.htm?a=2404884 wrote:

Most mortgage holders are in for a shock, as even those who are within the seven-year window will have their mortgage tax relief cancelled on Friday.

That's according to Ciaran Phelan of the Irish Brokers Association, who said that Minister Lenihan in his Budget three week's ago said that all qualifying mortgages will receive Tax Relief at Source (TRS) for the first seven years of the mortgage only.

However, "due to the Government's haste", many first time buyers and other struggling mortgage holders who are still within the 7 year window, will have their tax relief cancelled on Friday, said Mr Phelan.

"We understand that the Revenue are pulling the Tax Relief at Source on 1st May from the vast majority of mortgage holders, except for the very obvious first time buyers i.e. those who are still in their first home with the original mortgage lender. The relief is being suspended for all others. Those for example, who are still within the first 7 years of their mortgage, but heeded good advice and shopped around for a better mortgage deal are in for a shock when their mortgage payment shoots up in the very month that their income will be slashed by increased taxes. Also those people who have topped-up their mortgage in the first 7 years will be axed for a period of time," he said.

Revenue had said that first-time buyers, who have not moved house or re-mortgaged or re-financed will continue to receive tax relief at source in the usual way.

All borrowers currently receiving TRS are having their relief suspended immediately, pending a review of their entitlements by the Revenue under the amended TRS scheme.

However while the Revenue say that they are "committed to carrying out a review of all affected accounts and will at a later date, reinstate TRS on all accounts that continue to qualify for relief".

They 'aspire' to have this completed by June 09 but say 'this timeframe is purely indicative at this stage and given the number of accounts involved across all institutions this review may take longer to complete'.

"Our concern is that many people's financial situation has already come under serious strain over the last 12months. Some of these mortgage holders that will be affected are stuck on fixed rates and haven't even got the benefit of the recent rate reductions," said Mr Phelan.

"The onus will now fall to each household to ensure that the Revenue commissioners reinstate their TRS at sometime in the future. Brokers throughout the country are standing by to give assistance to all mortgage holders to ensure that they are claiming and receiving the correct amount of tax relief. As this is imminent, people who pay the net amount into their mortgage account will clearly have a shortfall. Their mortgage direct debt could bounce or the lack of funds may impact other finance payments and this could affect their credit rating. It is imperative that people are aware of this and act accordingly."

Darragh29

LostinBlanch wrote: »

Just heard about this on Newstalk now.

It won't be the straw that broke the camels back. People will just mutter and groan and whinge but do nothing about it.

I don't think so this time, I reckon this is the thing that will make people finally react in a more realistic fashion to these useless shower of incompetent gits that are running this country.

gazzer

Darragh29 wrote: »

I don't think so this time, I reckon this is the thing that will make people finally react in a more realistic fashion to these useless shower of incompetent gits that are running this country.

I hope you are right. I am fed up with the majority of the population of this country just bending over with a massive tub of vaseline and letting the government shaft them senseless:mad:

Darragh29

gazzer wrote: »

I hope you are right. I am fed up with the majority of the population of this country just bending over with a massive tub of vaseline and letting the government shaft them senseless:mad:

I'm dropping tools and going into town at the first word I hear of a protest about this. Enough is enough, my hole is the width of the Grand Canyon after this government.

NewFrockTuesday

The sneaky bastards :mad: Typical FF sleveen sucker it in under the door theythinkwereallfuggkingidiots tactics.

Im going to fire eggs at the Dial on the way home. Ive had it with this shower of cvnts. They should be run out of it. Someone called them shaved monkeys in suits before and they were bang on the money. Nothing is clear, nothing is put on the table as it should be - we should be told we are about to be financially raped yet again.

Sorry....I ll take myself off to the rant forum as I dont have anything constructive to add and I want to swear alot.

Trotter

Lets be realistic.. No FF government in this country can do anything bad enough to be forced into an election. Theres infinite tolerance and shoulder shrugging. There's a global recession, but we are in a deeper sort of muck than many, due to the idiocy of this government. They'll get away with it, as they always do, and we'll see them being carried shoulder high in count centres around the country, whenever they decide to call a general election.

There is no low which will prompt a general election. I firmly believe that now. People say.. who's the alternative? Even if the alternative is bad, we need to enforce the rule that poor governments are sacked.

The camel will struggle on with yet more straw.

Am I right in saying that because I got my first house and mortgage 3 years ago, I'll now lose my allowance and will have to reapply for it?

Darragh29

Deepsense wrote: »

Sorry....I ll take myself off to the rant forum as I dont have anything constructive to add and I want to swear alot.

Stand fast, you're in good company.

Benedict XVI

jhegarty wrote: »

If this doesn't bring down the government , I don't know what will.

There are only three groups that can bring down the Government

1. The Greens

2. The Independents

3. The voters of the two constituencies that are having by-elections

I will take it as read that the govt will loose two Dail votes in the by elections

They will still need the Greens and Independents to pull out to cause a general election.

Will the Greens take the moral high ground on this issue and pull the plug ????

That's the only way you can bring down the Govt.

Darragh29

Trotter wrote: »

Lets be realistic.. No FF government in this country can do anything bad enough to be forced into an election. Theres infinite tolerance and shoulder shrugging. There's a global recession, but we are in a deeper sort of muck than many, due to the idiocy of this government. They'll get away with it, as they always do, and we'll see them being carried shoulder high in voting centres around the country, whenever they decide to call a general election.

There is no low which will prompt a general election. I firmly believe that now. People say.. who's the alternative? Even if the alternative is bad, we need to enforce the rule that poor governments are sacked.

The camel will struggle on with yet more straw.

Am I right in saying that because I got my first house and mortgage 3 years ago, I'll now lose my allowance and will have to reapply for it?

It would seem to be the case that unless you have remained with the same lender since you took your mortgage out, you are fu*ked...

copacetic

jeez, talk about causing a panic OP.


Unless you have moved your mortgage you are fine, and if you have it sounds like it is being suspended until you prove you are still in the same home, then you will get it back?
i.e all the talk of 2 years etc in the OP is purely rubbish.

NewFrockTuesday

Yep...seems to eb the case Darragh - although am I right in saying each will be reviewed? So we'll have to beg for our TRS? IS that what we've come to?

There are only three groups that can bring down the Government

1. The Greens

2. The Independents

3. The voters of the two constituencies that are having by-elections

I will take it as read that the govt will loose two Dail votes in the by elections

They will still need the Greens and Independents to pull out to cause a general election.

Will the Greens take the moral high ground on this issue and pull the plug ????

That's the only way you can bring down the Govt.

I want a pitchfork party outside. I want to ram it up the fat behinds of those sneaky irresponsible bastards. Civility doesnt work here its very clear now.

nuttz

Just a question to put out there:
Considering the benefits the government(this one or the next one) will gain from getting rid of this tax relief, what are the justifications in keeping mortgage tax relief?

snubbleste

Revenue doing their job shocker

gazzer

copacetic wrote: »

jeez, talk about causing a panic OP.


Unless you have moved your mortgage you are fine, and if you have it sounds like it is being suspended until you prove you are still in the same home, then you will get it back?
i.e all the talk of 2 years etc in the OP is purely rubbish.

Hundreds of thousands of people are going to have to proof wheter or not they are entitled to TRS. There are only a small number of staff working in that office. They will be further reduced by staff going on term time who are not going to be replaced. It is going to take forever to go through all of the claims.

Trotter

Darragh29 wrote: »

It would seem to be the case that unless you have remained with the same lender since you took your mortgage out, you are fu*ked...

I'm with the same lender since day 1!

copacetic

gazzer wrote: »

Hundreds of thousands of people are going to have to proof wheter or not they are entitled to TRS. There are only a small number of staff working in that office. They will be further reduced by staff going on term time who are not going to be replaced. It is going to take forever to go through all of the claims.

holy exaggeration batman, where are these hundred of thousands of FTBs from the last 7 years that have all moved their mortgages coming from? Outer space?

gazzer

copacetic wrote: »

holy exaggeration batman, where are these hundred of thousands of FTBs from the last 7 years that have all moved their mortgages coming from? Outer space?

Well every person I know that has a mortgage moved to another bank over the last year of so to avail of a better rate. Now obviously I dont know hundreds of thousands of them but I would hazzard a guess that the majority of people that took out mortgages over the last 7 years moved to another provider in that time. There would be a couple of hundred thousand people who bought houses in the last 7 years imo.

copacetic

gazzer wrote: »

Well every person I know that has a mortgage moved to another bank over the last year of so to avail of a better rate. Now obviously I dont know hundreds of thousands of them but I would hazzard a guess that the majority of people that took out mortgages over the last 7 years moved to another provider in that time. There would be a couple of hundred thousand people who bought houses in the last 7 years imo.

Well I would agree that about 200k bought in last 7 years, but very much doubt the majority moved. I don't know anyone who moved in last year, the offers available are nothing like they were tracker wise. Most people I know took out trackers in 04/05/06 and there has been nothing like the same offers since.

The revenue have just also said that most peoples relief will start back up in June automatically with arrears paid. The thread title and OP is simply wrong.

gazzer

copacetic wrote: »

Well I would agree that about 200k bought in last 7 years, but very much doubt the majority moved. I don't know anyone who moved in last year, the offers available are nothing like they were tracker wise. Most people I know took out trackers in 04/05/06 and there has been nothing like the same offers since.

The revenue have just also said that most peoples relief will start back up in June automatically with arrears paid. The thread title and OP is simply wrong.

Well according to http://www.environ.ie/en/Publications/StatisticsandRegularPublications/HousingStatistics/FileDownLoad,18371,en.pdf Over half a million houses were built in the 7 years up to end of 2007. I would say there is going to be huge problems over this. I cant see relief starting back automatically in June but then I could be wrong

Darragh29

Trotter wrote: »

I'm with the same lender since day 1!

Well my OP bought her apartment with her sister and they both lived in the apartment without an issue. She bought her sister's half of the property off her as the sister wanted to move on and buy a house with her boyfriend.

That decision will cause her to have the mortgage interest relief suspended and she will have to re-apply for it while being hit for it in the meantime... It's just another exercise in beaurocratic bullsh*t from this government of blubbering useless f*ckmeisters.

Darragh29

copacetic wrote: »

Well I would agree that about 200k bought in last 7 years, but very much doubt the majority moved. I don't know anyone who moved in last year, the offers available are nothing like they were tracker wise. Most people I know took out trackers in 04/05/06 and there has been nothing like the same offers since.

The revenue have just also said that most peoples relief will start back up in June automatically with arrears paid. The thread title and OP is simply wrong.

If I am wrong, I said in the OP that I didn't have the full facts, I said it was basically breaking news and I was just saying it as I was hearing it on Q102... I doubt very much that the same government that takes a couple of months to process someone for the dole will have this all sorted out within 4 weeks by June. If they could do that, sure why bother suspending it at all???

Sleipnir

The moron Lenihan justified it by saying that people could afford to do without it because interest rates have dropped so low.
He also said that although mortgage interest relief is being suspended for now, it's likely that it will be abolished in the future.

So, justification was that interest rates have dropped but will we get it back if interest rates go up again? Will we hell, is pretty much his response.

Darragh29

Sleipnir wrote: »

The moron Lenihan justified it by saying that people could afford to do without it because interest rates have dropped so low.
He also said that although mortgage interest relief is being suspended for now, it's likely that it will be abolished in the future.

So, justification was that interest rates have dropped but will we get it back if interest rates go up again? Will we hell, is pretty much his response.

And of course he conveniently forgot about the small little matter of our INSANELY PRICED PROPERTY MARKET, which Fianna Fail encouraged though tax reliefs for builders and developers, against the best advice of everyone. Low interest rates are only worth something if you didn't have to pay over the odds for a roof over your head in this country if you bought during the last ten years.

is_that_so

Trotter wrote: »

Am I right in saying that because I got my first house and mortgage 3 years ago, I'll now lose my allowance and will have to reapply for it?

Not quite. First time buyers or people who can be identified as first time buyers will continue to receive it. The trouble is determining whether that house extension top-up, new mortgage from another provider or the deposit for the apartment in Bulgaria still qualify so Revenue, and it is Revenue doing this, have cancelled all of it for everyone else from Friday to figure it out. From what I understand once they sift through various types of loans it will be reinstated. It makes sense to me, but yet again we have a political decision that no-one saw fit to think through.