Mortgage Interest Relief to be tapered from Jan 2018?

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Paul Reilly

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What this effectively means is that people on Variable Rates and other rateswho bought from 2004 to 2012 their repayment will increase by 50euro a month in 2018, 100euro a month in 2019 and 150 euro a month from 2020.

With TSB our repayment is 740 a month which we struggle to pay.

Next year this will be 790 euro.

My God.

FF lobbied for tapered rates but FG wanted to increase it by 150 euro straight off.
 
How do you know that?

The press speculation is that MIR will be continued at 75% of the current rate for the next three years but we won't know for sure until tomorrow.

IMO it's an un-targeted relief that should have been abolished years ago but the continuation of the relief was a condition of FF's support of the current government.
 
Your entitled to your opinion Sarenco but while the Variable Rates come down slowly at some banks this will mean an even further increase in January.

What do you mean an untargeted Relief?

I guess all Im saying is that with Mortgage Interest Relief I can oay my mortgage just but without it Ill be going into arrears and Im sure theres a good few in the same boat.

I know youll say switch lender but im in Negative equity.

Then you may say does your bank not have an alternative rate?

Im on the lowest.

I can wait 3 or 4 years and switch.

Just think Government should be more forceful in driving down rates and not just for new customers.

Thats my opinion. Ok.
 
I think its the least the state can do for people on variables considering the way these people have been screwed by the banks in the last number of years so as they could shore up their profits at our expense. It might be business but these people have made an inordinately excessive contribution towards returning the banks to proitability and thus making the state ownex banks more attractive for sale back to the private sector.
 
Paul Reilly said:
What do you mean an untargeted Relief?
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By "untargeted" I mean that MIR does not discriminate between borrowers on the basis of need.

Let me explain by way of an example:-

I know somebody that first took out a mortgage in 1999, subsequently got married and 7 years later traded up to a larger home. So far he has received MIR for nearly 18 years (!) and will now, apparently, receive MIR for a further 3 years. IMO it's a terrible waste of taxpayers' money - this chap no more needs 3 more years of MIR than the man on the moon. Trust me - he's loaded.

Wouldn't it be much better to use that money to reduce USC? Or to improve our health services?

We're not talking about small beans here - MIR costs the State a lot of money.
 
Well if they abolish the MIR Variable Rates should be capped OR charge the bank levy based on Highest Variable Rate charged by the individual bank.

Therefore the banks with the lowest rates will pay least and the other banks who have deliberately done nothing or very little to reduce Variables be punished fairly.

I was offered a fixed rate of 4.2 percent instead of 4.3 percent. Should I wait and see if Variable rate goes down or assime it will rise. Who knows. But again if a bank was your boss and was pressurised into giving you a pay rise theyd give you 1c.
 
Paul Reilly said:
Well if they abolish the MIR Variable Rates should be capped OR charge the bank levy based on Highest Variable Rate charged by the individual bank.
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All the indications are that the Minister is going to honour the Supply and Confidence Agreement with FF and will extend MIR tomorrow for three additional years on a tapered basis.

I don't think that is a targeted use of taxpayers' money but I don't make the rules.
 
pguyo said:
I thought MIR was for your first house only.
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First time buyers got a bigger percentage reduction than non first time buyers.

Although I suspect if Sarencos mate bought his second house during that period he had to pay a big chunk in stamp duty. Then a couple of years later this was abolished and replaced with LPT. I don't remember many people at that time saying that was unfair.
 
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Paul Reilly said:
What this effectively means is that people on Variable Rates and other rateswho bought from 2004 to 2012 their repayment will increase by 50euro a month in 2018, 100euro a month in 2019 and 150 euro a month from 2020.
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it was always due to taper after 7 years for FTBs, so only people who bought in 2012 would have still been on the higher rates in 2018.

At the lower rate its currently worth max €75 a month for a couple, so presumably this will reduce to €56.25?
 
shweeney said:
it was always due to taper after 7 years for FTBs, so only people who bought in 2012 would have still been on the higher rates in 2018.
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That should have been the case but FTBs that purchased between 1 January 2004 and 31 December 2008 got MIR at an enhanced rate of 30% for 2012 to 2017 with no step down.
 
You should be delighted - the relief was due to end this year for current beneficiaries and has now been extended, albeit on a tapered basis, for a further three years.

Some people are never happy.
 
I am delighted.

Im not affiliated to any party but thank God Michael McGrath lobbied for it to be maintained.

Maybe Ill be rich in 3 years like your mate Sarenco.
 
AIB rate reductions more or less cancel out the MIR reductions for the next couple of year, so can't grumble I guess...
 
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