Mortgage Interest Relief Stopped..??

az2wp0sye65487

I don't think this will affect me as I'm within the first 7 years of my first mortgage... but it scared me when I first heard it on the radio today...

Wednesday, 29 April 2009 19:44
The Revenue Commissioners has moved to clarify the situation regarding the ending of mortgage interest relief.

Opposition parties had accused the Government of creating confusion over the issue.

It is understood some taxpayers will have their relief stopped until the Revenue Commissioners establish if they are entitled to continued relief.

However, Government sources have indicated that this will not affect first time buyers, and claimed that it will only apply to a minority of other home owners.

In his Budget speech, Minister for Finance Brian Lenihan said mortgage interest relief would be restricted to the first seven years of a mortgage.

Since then, the Revenue Commissioners have been in discussion with the banks about how that can be done.

The situation is clear for first time buyers, but it is more confused for people on their second or third mortgages - and it is likely that at least some of them will have their relief stopped until Revenue can establish if they are entitled to continued relief.

In a statement this evening, the Revenue Commissioners said that the relief at source would be reactivated in June where an entitlement is established, and that any arrears will be credited to their accounts automatically.

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

gerrycollins

News this evening said they just need time to look at all the account but the ones flagged first time buyer got a get out of jail card.

If your mortage for your second/third so on house is in its first 7 years then you quailify. However it will be june/july when you will get it back and they will back date it

If you top up your mortage within the 7 years so long as its to make significant improvements to your house,not buy a car etc, then the 7 years is reset and you have the relif for another 7 years. Dunno how they are going to police this one aspect of it.

az2wp0sye65487

gerrycollins wrote: »

News this evening said they just need time to look at all the account but the ones flagged first time buyer got a get out of jail card.

If your mortage for your second/third so on house is in its first 7 years then you quailify. However it will be june/july when you will get it back and they will back date it

If you top up your mortage within the 7 years so long as its to make significant improvements to your house,not buy a car etc, then the 7 years is reset and you have the relif for another 7 years. Dunno how they are going to police this one aspect of it.

Appreciate the info. They were fairly vague in the news reports!

KingJo

I am in the first seven yrs of my mortgage but took out a top up loan this yr (different mortgage number) and am not claiming tax relief on this smaller loan. Does anyone know if the tax relief will be taken off me??

az2wp0sye65487

KingJo wrote: »

I am in the first seven yrs of my mortgage but took out a top up loan this yr (different mortgage number) and am not claiming tax relief on this smaller loan. Does anyone know if the tax relief will be taken off me??

If you're not taking tax relief on it already then it can't be taken from you as there is nothing to take...

Did I take this up the wrong way?

KingJo

Myla Swift Lumbar wrote: »

If you're not taking tax relief on it already then it can't be taken from you as there is nothing to take...

Did I take this up the wrong way?

APOLOGIES FOR CONFUSING YOU-IT SAID ON THE RTE WEBSITE PEOPLE WHO TOPPED UP THEIR MORTGAGE WOULD LOSE THE RELIEF. I MEANT WOULD THEY TAKE THE RELIEF FROM ME TOTALLY DUE TO THE FACT I HAD A TOP UP.

dubdub123

Bought our current home in 2006, we were non-ftb.. I think we should be entitled to TRS still but got the letter today to say it's being suspended. The house we bought was second hand - does that matter?
Within the letter it stated
"If you did not take out a new loan for a new house [not your first home] or a top up qualifying loan on your existing home since 1st January 2003, you are no longer entitled to mortgage interest relief."

So, does it need to be a new house?? (as in not secondhand), or do they just mean a new house to us, as in we made a new purchase of a house.. Very confused. Doesn't ask that on the form online, and I'm worried about submitting it. Can't find anything online to indicate if the house had to be new but the letter has confused me now.. Any help ??

Kinetic^

dubdub123 wrote: »

Bought our current home in 2006, we were non-ftb

I think is the key here. Afaik it's for first time buyers on their first home from now on, whether you buy new on 2nd hand.

javaboy

This isn't really an After Hours topic.

Try:
Irish Economy
or Taxation maybe: http://www.boards.ie/vbulletin/forumdisplay.php?f=1208