How does a mortgage work ?

mickman

Hi everyone

I am in year 6 of my mortgage and im fairly sure that TRS lasts for 7 years so that means one more year.

So lets say my mortgage is 1500 pm and its 1250 after TRS.

What happens after year 7 when TRS is removed, will mortgage be 1500 all of a sudden or is the scheme designed in such a way as to be removed when the actual mortgage payments are coming down anyway so it kind of stays the same ?

murphaph

mickman wrote: »

Hi everyone

I am in year 6 of my mortgage and im fairly sure that TRS lasts for 7 years so that means one more year.

So lets say my mortgage is 1500 pm and its 1250 after TRS.

What happens after year 7 when TRS is removed, will mortgage be 1500 all of a sudden or is the scheme designed in such a way as to be removed when the actual mortgage payments are coming down anyway so it kind of stays the same ?

Your mortgage payments won't decrease in amount unless there's an interest rate cut and you're on a variable rate mortgage. Your payment will instantly jump to its real level when your trs runs out.

mickman

murphaph wrote: »

Your mortgage payments won't decrease in amount unless there's an interest rate cut and you're on a variable rate mortgage. Your payment will instantly jump to its real level when your trs runs out.

so TRS is only a scam - there are lots of people in our situation, will they all be able to absorb this increase ? will it kill house prices again ?

bee06

mickman wrote: »

so TRS is only a scam - there are lots of people in our situation, will they all be able to absorb this increase ? will it kill house prices again ?

How is it a scam? You've had 7 years of reduced mortgage payment and 7 years notice that you would need to pay the full amount when it ends so you can plan accordingly. When you took your mortgage out it was also based on your capacity to pay the full amount not the mortgage payment including TRS.

jameshayes

a scam that has saved you probably in and around 12 -15 grand over the last 7 years, yip.

mickman

jameshayes wrote: »

a scam that has saved you probably in and around 12 -15 grand over the last 7 years, yip.

As Trs undoubtedly led to the housing boom , the 12 grand was well swallowed up by the loss on the house

rameire

if it was a scam why dont you contact revenue on 1890 463626
and ask them to take the money back.
how dare they give you money to assist you to pay off your mortgage

chris85

mickman wrote: »

As Trs undoubtedly led to the housing boom , the 12 grand was well swallowed up by the loss on the house

Yes that must be it then. Case solved. Or it could have been the loose lending criteria, sub prime lending, peoples greed to rely on credit for too much, widespread media that people needed to get on the "property ladder". But no it must be the government initiative to provide some type of tax relief against the interest you pay on the mortgage. I am looking to buy and would love to have TRS for my mortgage,

Also, how did you not understand this when you got your mortgage?

mickman

chris85 wrote: »

Yes that must be it then. Case solved. Or it could have been the loose lending criteria, sub prime lending, peoples greed to rely on credit for too much, widespread media that people needed to get on the "property ladder". But no it must be the government initiative to provide some type of tax relief against the interest you pay on the mortgage. I am looking to buy and would love to have TRS for my mortgage,

Also, how did you not understand this when you got your mortgage?

cos it wasnt explained.

Im also looking to get a second mortgage and not once did they ask about TRS on the original and when it expires, even though it will jack my payments up by 250 PM. still loose in my opinion

murphaph

mickman wrote: »

cos it wasnt explained.

Im also looking to get a second mortgage and not once did they ask about TRS on the original and when it expires, even though it will jack my payments up by 250 PM. still loose in my opinion

No offence but someone who obviously has no idea how repayment mortgages even work has no business taking yet another one out!

rameire

murphaph wrote: »

No offence but someone who obviously has no idea how repayment mortgages even work has no business taking yet another one out!

Amazingly and unfortunately half the populace don't know how a mortgage works. And most people don't know how trs works.

xalot

mickman wrote: »

Hi everyone

I am in year 6 of my mortgage and im fairly sure that TRS lasts for 7 years so that means one more year.

So lets say my mortgage is 1500 pm and its 1250 after TRS.

What happens after year 7 when TRS is removed, will mortgage be 1500 all of a sudden or is the scheme designed in such a way as to be removed when the actual mortgage payments are coming down anyway so it kind of stays the same ?

I'm no expert on these matters but according to the citizens advise website:
For a mortgage taken out between 1 January 2004 and 31 December 2012, your entitlement to relief will continue until the end of 2017.

chris85

mickman wrote: »

cos it wasnt explained.

Im also looking to get a second mortgage and not once did they ask about TRS on the original and when it expires, even though it will jack my payments up by 250 PM. still loose in my opinion

Explained? The internet and mortgage documents have info on this readily available. Educate yourself on the ins and outs of the biggest debt you most likely have.

mickman

murphaph wrote: »

No offence but someone who obviously has no idea how repayment mortgages even work has no business taking yet another one out!

Why not ? They are throwing another 300k at me so may as well

phormium

Grand, but don't come back complaining about the bold banks if it all goes wrong.

I would be surprised if it wasn't explained, in my experience people who want to buy a house don't listen to a word they are told about the mortgage or read any of the info on it, they want the house, the mortgage is just an annoying irritation in the way and there is a bit of the hands over the ears la la la with lots of customers, they WANT the house, nothing else matters.

DMcL1971

mickman wrote: »

Why not ? They are throwing another 300k at me so may as well

You are a troll.

mickman

DMcL1971 wrote: »

You are a troll.

Excuse me

mickman

phormium wrote: »

Grand, but don't come back complaining about the bold banks if it all goes wrong.

I would be surprised if it wasn't explained, in my experience people who want to buy a house don't listen to a word they are told about the mortgage or read any of the info on it, they want the house, the mortgage is just an annoying irritation in the way and there is a bit of the hands over the ears la la la with lots of customers, they WANT the house, nothing else matters.

Speaking to someone yesterday who thought Trs lasted forever abd said if its removed then they won't be able to afford the repayments

I'm sure there are thousands like this

murphaph

mickman wrote: »

Speaking to someone yesterday who thought Trs lasted forever abd said if its removed then they won't be able to afford the repayments

I'm sure there are thousands like this

No sympathy from me for being so ignorant of the workings of the largest transaction of your life.

mickman

murphaph wrote: »

No sympathy from me for being so ignorant of the workings of the largest transaction of your life.

well sure you and the other citizens will pay for our mess with taxes

murphaph

mickman wrote: »

well sure you and the other citizens will pay for our mess with taxes

Ah, so the poster above was correct. Ok I'll leave it there. Don't feed the ...

Toots

I think we're done here.