New Repayment Amount due to the changes in Tax Relief

Discussion in 'The Fair Mortgage Rates Campaign' started by Paul Reilly, Jan 9, 2018.

  1. Paul Reilly

    Paul Reilly Frequent Poster

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    Our mortgage with PTSB has increased by 43 euro a month from today. Im sure other Variable Rate Customers who are unable to switch due to negative equity or go on to any lower rate are in for a similar shock this week.

    This is Governmrnt policy though and next year it will go up by at least 43 euro a month again with a similar further increase in 2020.

    Then when the economy crashes again more and more homeless.
     
  2. elcato

    elcato Moderator

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    I'm confused. Are you saying that the TRS relief has gone down so therefor your effective mortgage monthly amount has increased ?
     
  3. renter45

    renter45 Frequent Poster

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    TRS was meant to end Dec'17, its been extended but at a reducing amount. Nearly 12 years since the crash and house prices have recovered well since 2012, hopefully you'll be out of negative equity soon.
     
  4. Sarenco

    Sarenco Frequent Poster

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  5. Paul Reilly

    Paul Reilly Frequent Poster

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    Yes in Dublin , most of the commuter belt and places like Galway and Cork. Negative equity is fast dissappearing.

    In most of Connaught (Sligo, Roscommon, lots of Mayo, Leitrim and even some of Galway County), Donegal, Cavan, Longford there are many properties that will never be out of Negative Equity.

    In 2 years time we will be paying another 70 euro on our mortgage along with any further increases due to the amount the bank has lost on trackers....punish the Variables.. so anyone who thinks negative equity is disappearing outside the populated areas is delluded....hence increased homelessness will certainly be an issue with this, upward rents and vacant unusable houses in the rural West as a result.

    Many people in Dublin think that outside Dublin there is no country since they rarely venture out only to go abroad. Well theres a different economy altogether the further West you go. Peoples lives are being destroyed.

    In Sligo for example business after business is Closing....still!!
     
  6. Sarenco

    Sarenco Frequent Poster

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    House prices, excluding Dublin, have increased by 62% from their trough in early 2013 (per the CSO).

    I personally didn't agree with the extension of the taxpayer subsidy to mortgage borrowers that was put in place last year but I'm sure you are delighted with the extra dig out. No?

    Incidentally, why haven't you switched to PTSB's applicable managed variable rate?
     
    jim and Dauhee like this.
  7. Protocol

    Protocol Frequent Poster

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    Paul,

    You may be confusing negative equity with capital losses.

    Negative equity will always disappear, as the mortgage is repaid.

    But yes, in regional Ireland, many house prices will never recover to the original selling price, so a capital loss.
     
    galwaypat likes this.
  8. RETIRED2017

    RETIRED2017 Frequent Poster

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    Last edited: Jan 11, 2018
    I have come across a friend who had no problem paying there mortgage until house prices dropped they did not suffer any wage drop there biggest problem is accepting capital loss. once the accepted there house may never recover to the original price . and instead looked at how much they had paid off there original mortgage , Once the accepted the past should be left in the past and not allowed to destroy there future they are now in a happier place ,
     
    Last edited: Jan 11, 2018
    galwaypat likes this.
  9. cliqueentour

    cliqueentour Registered User

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    If you think the variable rate people are being punished, why don't u fix your rate and avail of cheaper rates. From your initial posting it seems you are complaining that Joe Taxpayer isn't subsidising your mortgage repayment forever.
     
    Dauhee likes this.
  10. renter45

    renter45 Frequent Poster

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    Paul
    What bank are you with, what rate are you paying, whats outstanding on your mortgage and whats the approx. value on your home? Red onion & sarenco know this stuff inside out & may be able to suggest a solution.
     
  11. Paul Reilly

    Paul Reilly Frequent Poster

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    Incidentally, why haven't you switched to PTSB's applicable managed variable rate?

    We have at the instance of its availability.

    I disagree with variable mortgage holders having to "dig" out tracker holders

    As soon as negative equity is gone on our house we will switch have no fear. Im already booked in with a solicitor.

    Its this governments fear of the banks and inaction on variable rates that irks me.

    And of course the mortgage interest relief "dig" out disappearing fast.

    Nothing will ever be done to punish the banks for high rates and once boom increases in Dublin and the EU the trackers are in for a major shock. As next year I can see an increase in the base rate starting again.
     
  12. renter45

    renter45 Frequent Poster

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    Whats the EU inflation rate at now vs their 2% target? what factors do you see coming into play to influence a rate increase?
     
  13. deltrotter

    deltrotter Registered User

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    I'm in the same boat as yourself Paul - negative equity and variable rate and the TRS has reduced. Very annoying. I'm still about 78k in negative equity :(
     
  14. RedOnion

    RedOnion Frequent Poster

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    Hi Del,
    I thought you were with EBS, or is this a different Mortgage?
     
    RETIRED2017 likes this.
  15. WorstPigeon

    WorstPigeon Frequent Poster

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    Fast? It’s been in place for up to 14 years! As I understand it, it was never supposed to last this long in the first place, was it?

    I seriously think that it should be means tested, at this point. Most recipients don’t need it.
     
    rob oyle, Sarenco and Dauhee like this.
  16. Donnie

    Donnie Registered User

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    I would just like to revisit this point.

    I am still receiving TRS and was due to expire in Dec 2017 but luckily for me as agreed in the budget this benefit was being phased out. Therefore I am still in receipt of TRS but at a discounted rate.

    However I am seeing a significant change in my TRS amounts and also in my monthly repayments - see the below for further details

    Dec 17
    -€1,323.58 monthly repayment
    +€168.84 TRS

    Jan 18
    -€1,4274.11 monthly repayment
    +€56.25 TRS

    Discounted lifetime variable rate with Ulster Bank
    Variable rate of 3%
    Loan amount remaining of €387,500
    Years remaining 28

    I would have expected the TRS amounts to change but was unaware that there would also be an impact on the monthly repayments

    Any advice would be helpful.

    Thank you
     
  17. RedOnion

    RedOnion Frequent Poster

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    @Donnie there's something off with your numbers. Repayment on 387.5k over 28 years would be over 1700 per month.
    Can you also clarify new monthly payment? There's an extra digit in there somewhere.
     
    noproblem likes this.
  18. shweeney

    shweeney Frequent Poster

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    my monthly payment didn't change in January, just the TRS reimbursement was reduced.
    (Fortunately AIB reduced their rates in December, so it's more or less the same - can't complain.)
     
  19. Donnie

    Donnie Registered User

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    Sorry that was a typo. New repayment is €1474.11
     
  20. RedOnion

    RedOnion Frequent Poster

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    Hi @Donnie
    That repayment change doesn't make any sense.

    Are you sure they haven't increased your interest rate or something (they've been removing loyalty discount from customers that don't actually have a UB current account).