Suspension of mortgage interest relief from Friday 01 May 2009?

darkskol

Bad news regarding mortgage interest relief taken from newstalk

"Bad news for mortgage holders - 29/04/2009 15:08:46

There's a warning that mortgage holders are in for a massive shock this Friday over changes to mortgage interest relief.

It follows the announcement in the budget earlier this month that mortgage interest relief would only be applied for the first seven years of the loan.

The Irish Brokers Association claims that the Revenue Commissioners will unilaterally "suspend" mortgage interest relief at source from virtually all mortgage holders on Friday next.

The only exception will be very obvious first time buyers - in other words those still in their first home and with the original lender.

The Brokers Association say many holders who are still within the seven year window, but shopped around and switched their mortgage, and those who topped up their mortgage will have the relief at source suspended.

This could see mortgage repayments immediately increase substantially.

The Revenue Commissioners then plan to review all mortgage holders entitlements under the ammended scheme from the budget, but this could take monmths to complete.

But it will fall to each mortgage holder to ensure that if they are entitled to the relief that it is reinstated."

http://newstalk.ie/newstalk/news/19003/bad-news-for-mortgage-holders.html

red dave

This is nuts

darkskol

Also



Quote:
Mortgage holders in for shock on Friday

Wednesday, April 29 11:38:07
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."

tommmy1979

If that actually happens and this isn't a piss take then it's time for us to stop taking it up the jacksy from the gubernment.. i've had enough:mad:

Borzoi

tommmy1979 wrote: »

If that actually happens and this isn't a piss take then it's time for us to stop taking it up the jacksy from the gubernment.. i've had enough:mad:

Agreed. It may be time to riot.

uncanny

darkskol wrote: »

Bad news regarding mortgage interest relief taken from newstalk

There's no bad news here.

Hopefully this will catch out a lot of canny spongers.

Genuine FTBs still living in their PPR have nothing to fear, their relief will be re-instated if they are entitled to it.

mathie

Guilty until proven innocent.

I for one welcome our incompetent government overlords.

ntlbell

About time they got the finger out.

Fully endorse this service/product

loyatemu

he said during the Budget speech that in the long term they are going to get rid of it altogether, something a number of economists were calling for during the housing boom.

its slightly strange what they've done here - if you bought a house over 7 years ago, your relief is gone. However if you've bought another house in the intervening time and taken out a new mortgage, then you still get relief. I'm surprised they haven't just scrapped it for everyone who isn't a FTB.

ntlbell

loyatemu wrote: »

I'm surprised they haven't just scrapped it for everyone who isn't a FTB.

I thought this was the new plan?

twanda

I wonder just how many people availing of the mortgage interest relief scheme are genuine? Of course there are people who genuinely need the help, but according to RTE news, there are currently 562,000 people receiving the entitlement. Only 57,000 of those will definitely have it cancelled.
By the way, what way does this work for people on interest-only mortgages? Do they get their entire mortgage paid for ?

loyatemu

twanda wrote: »

I wonder just how many people availing of the mortgage interest relief scheme are genuine? Of course there are people who genuinely need the help, but according to RTE news, there are currently 562,000 people receiving the entitlement. Only 57,000 of those will definitely have it cancelled.
By the way, what way does this work for people on interest-only mortgages? Do they get their entire mortgage paid for ?

you're mixing up Mortgage Interest Relief with the social welfare mortgage assistance. Currently everyone who has a mortgage on their home gets tax relief on the interest - there are different maximum levels of relief available depending on whether you're a "first-time buyer" or not. Its given at source by the lender so there's no real question as to whether recipients are "genuine".

The social welfare scheme pays the entire interest on your mortgage (for a certain period, a year I think) and is aimed at people who have lost their jobs.

twanda

ah, ok. Sorry for the confusion!

Tazzer

darkskol 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.
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.

Just checked my bank account, and I have recieved TRS for this months payment...

Payment Date is 2nd of each month.
Im with IIB by the way.

Has anyone else checked to see if their TRS has been suspended.