Im with you on this toshsmith but i still dont understand the point your trying to make re the trackers. Thats more of a speculative statement you are making.
With regards to MIR on Trackers -v- Variable Rate Mortgages remember when trackers were all the rage house prices were much much higher. So Interest on a 200k Varable Rate Mortgage @ 4.50% same as 600k 1.5% Tracker ... so only fair that MIR is provided to the Tracker Mortgage holder as costs are the same.
One key point about the Government extending MIR in the 2017 Budget is that because Interest Rates are so low and because most of the mortgage holders in the relevant allowable time frame would have had tracker mortgages and the fact that future Interest rate forecast are expected to remain low beyond 2020 ... this all means that the Government knew when they were extending MIR to 2020 that it would in all likelihood cost them very little.
i'm one of those 2008 buyers on a (now) SVR (was fixed at start) so i'm happy about this as it saves me €150pm, but, tbh, still think it would've been better spent elsewhere.
also, it will be a year before we get any clarity on it, i would suspect that after 2017 the ceilings will reduce again
I was talking to somebody recently that has been in receipt of MIR for almost 19 years!
She bought her first home back in 1997 and traded up to a larger house in 2004. She's pretty well off and thinks it's absolutely crazy that she is now going to receive MIR until the end of 2020 - that will be 23 years in total!
Can someone just confirm for me.
I built my house in 2010, took out mortgage and have been getting MIR since then and this was due to be finished with in 7 years, ie Dec 17. Is it true now this will continue after Dec 17 depending on what conditions etc. are announced and will it be at the same rate?
if bought in 2012 that would be close enough to the trough alright but if bought in 2014 or 2015 as I did then prices were well bounced back. I paid more than double for my house in 2015 compared to what the previous owners paid for it in 2011!
In fairness if MIR is there it should be extended to those that bought after 2012 up to a point. Otherwise its discriminatory.
How can the government justify either:
a) keeping this relief, or;
b) not extending it outside of the timeframe 2004 - 2012?
aren't we talking about 2 different, although related, things here. The tracker was a product offered by banks completely independent of this relief. if someone is on a tracker and therefore a low interest rate then this relief would be less beneficial. If someone was on a high svr then the relief would be more beneficial....unless I am missing something....for the purpose of this thread aren't we discussing the merits of the extension of this relief?
I think its unfair that this relief is extended for those that drew down a mortgage between 2004 and 2012 - what about those that drewdown after 2012? How are they different? whilst there are many families that are grateful for this relief there are probably many more that don't actually need it. The taxpayers money should have been spent elsewhere IMHO.
as said before, the details of the extension will be released next year in October 2017 budget, we dont know what is to be done or how, they could have a huge overhaul, but we dont know.