Revenue suspending Mortgage interest Relief

Haven't seen it anywhere else but from you...so I assume not (I hope!"!!)
 
It's the lead item on Newstalk news for the last 3 hours or so. They are suspending TRS for all people except those "obviously" first time buyers. They need to review eligibility and rates for everyone so are suspending TRS until that happens - they estimate it will take a few months.

I'd imagine there will be uproar.
 
Just got the news on news talk and yes this appears to be the case. Except where the loan is with the original provider, and the property is the same property. In other words if you are recieving the FTB grant and have traded up or moved bank the TRS will temporarily be suspended!
 
From [broken link removed]

Mortgage holders in for shock on Friday

Wednesday, April 29 11:38:07
Most mortgage holders are in for a shock, as even those who are within the seven-year window will have their mortgage tax relief cancelled on Friday.
That's according to Ciaran Phelan of the Irish Brokers Association, who said that Minister Lenihan in his Budget three week's ago said that all qualifying mortgages will receive Tax Relief at Source (TRS) for the first seven years of the mortgage only.
However, "due to the Government's haste", many first time buyers and other struggling mortgage holders who are still within the 7 year window, will have their tax relief cancelled on Friday, said Mr Phelan.
"We understand that the Revenue are pulling the Tax Relief at Source on 1st May from the vast majority of mortgage holders, except for the very obvious first time buyers i.e. those who are still in their first home with the original mortgage lender. The relief is being suspended for all others. Those for example, who are still within the first 7 years of their mortgage, but heeded good advice and shopped around for a better mortgage deal are in for a shock when their mortgage payment shoots up in the very month that their income will be slashed by increased taxes. Also those people who have topped-up their mortgage in the first 7 years will be axed for a period of time," he said.
Revenue had said that first-time buyers, who have not moved house or re-mortgaged or re-financed will continue to receive tax relief at source in the usual way.
All borrowers currently receiving TRS are having their relief suspended immediately, pending a review of their entitlements by the Revenue under the amended TRS scheme.
However while the Revenue say that they are "committed to carrying out a review of all affected accounts and will at a later date, reinstate TRS on all accounts that continue to qualify for relief".
They 'aspire' to have this completed by June 09 but say 'this timeframe is purely indicative at this stage and given the number of accounts involved across all institutions this review may take longer to complete'.
"Our concern is that many people's financial situation has already come under serious strain over the last 12months. Some of these mortgage holders that will be affected are stuck on fixed rates and haven't even got the benefit of the recent rate reductions," said Mr Phelan.
"The onus will now fall to each household to ensure that the Revenue commissioners reinstate their TRS at sometime in the future. Brokers throughout the country are standing by to give assistance to all mortgage holders to ensure that they are claiming and receiving the correct amount of tax relief. As this is imminent, people who pay the net amount into their mortgage account will clearly have a shortfall. Their mortgage direct debt could bounce or the lack of funds may impact other finance payments and this could affect their credit rating. It is imperative that people are aware of this and act accordingly."
Click to expand...
 
With absolutely no notice?
I can't find any information on this outside of the link above.
 
Mortgage Interest Relief should have never been allowed in the first place. The countries that have it are now experiencing the most painful property crashes.
 
There may be a case now for scrapping it or reducing it..however I cant imagine it was the cause of a property crash tbh.
 
Biffo & Co have really done it this time.

This is the latest in a list of revenue-generating / taxation measures introduced since last October that cannot be implemented (removal of medical cards, bicycle tax-credits, car park levies, etc.). The rest of the world must be sitting on the financial sidelines either laughing their legs off or scratching their heads in bemusement at the sheer ineptitude of it all - no-one in Lenihan's office knew enough to make a call to someone in the Revenue offices about implementing this latest cash-cow initiative.

But are they right that's its actually incompetence on a massive scale or is it a bit of the "auld gombeen-man syndrome" in action?

The net effect of removing TRS from people who are entitled to it is to provide the denuded Government coffers with a short-term badly needed windfall - temporary granted but a windfall none the less. No doubt this will make for interesting reading when we report back to Brussels on their budget deficit requirements for the coming quarter.

But what do I know, I'm just an ageing cynic?
 
"Some people don't seem to realise the severity of the situation we are in. Of course cervical cancer screening and mortgage interest relief where good ideas in the hay day, but i have several hundred local councillors out of a job and need about €30million to pay for it (some of them didn't even get to the races this year) so i have had to make yet another tough decision as leader of this county"

your premier, BIFFO
 
It was announced by the Revenue Commissioners that their review of claims for TRS will be completed by June, and anyone who still has an entitlement to TRS will have it re-instated and arrears credited to their mortgage account. (heard it on the RTE 6.01 news)

Regarding notice, I posted on this issue in the Budget 2009 forum on Monday, having seen an announcement on the EBS website - I didn't get anything directly from EBS though.
 
balkanhawk said:
Mortgage Interest Relief should have never been allowed in the first place. The countries that have it are now experiencing the most painful property crashes.
Click to expand...

Is the UK not experiencing property crashes at the moment? They abolished Mortgage Interest Relief back in 2000.
 
im completely lost here with all this as i'm sure everyone else is can someone fill me in
currant situation in process of buying first home with other half i'm ftb and he's not he has investment property so does all this mean i will get interest relief and other half wont?? What if he takes is interest relief off his other house for his new house which he will be resisding in both of us will??
Revenue web site says he has to claim tax relief on the house he lives in but as we are renting still waiting on our new house how do we stand when we do move into our new house in bout 2 months??
 
guys if you are say 5 years a first time buyer but have changed mortgage are you still in that magic 7 year period of mortgage interest relief - its not very clear from the wireless.
 
pennypitstop said:
guys if you are say 5 years a first time buyer but have changed mortgage are you still in that magic 7 year period of mortgage interest relief - its not very clear from the wireless.
Click to expand...

You are still entitled to it but it'll likely be suspended from 1st May until you reapply and Revenue confirm your entitlement. Then you'll get the back-dated amount.
 
WaterSprite said:
You are still entitled to it but it'll likely be suspended from 1st May until you reapply and Revenue confirm your entitlement. Then you'll get the back-dated amount.
Click to expand...

ok here goes.

if you are in the following bands you will continue to get trs.
25%, 22.5%, 20% no matter what.

if you are a 15 percenter, more than likely your trs will stop so no trs for you in may.
if you have not topped up or moved house in the last 7 years, but have had a mortgage for more than 7 years, say bye bye to trs.

if you have moved or topped up in the last 7 years, you will hopefully receive trs again from june.

give it time, relax, you will get the money back if you are due it.
there is no point in complaining to the bank, to the revenue, to joe duffy.
you will just stress yourself out.
if in july it hasnt returned for you.
just ring the revenue on 1890 46 36 26 and talk to them nice and calm.
 
Ah, that top up for renovations and to pay back the original deposit is coming back to haunt me now...

I wonder how revenue are going to handle top ups that were used to repay the original deposit.

Credit union and 'gift' from parents and loans from other siblings for deposit -> graduate loan within year of house purchase -> top up including renovations.

1/3 of the top up was used for renovations...which I thankfully kept 2 envelopes of receipts for. And I have documentation from the graduate loan onwards...

Thankfully, my salary as expected has increased more than 25% since I bought my house; I have ECB tracker + .75% so I can afford to pay the difference regardless. But I know many FTB single buyers who will be in difficulties as this is unexpected and mid year. Another plus, is I bought before the peak but still < 5 years ago.

Many people topped up to pay back the deposit borrowed from family members, which weren't real 'gifts'. Will this be allowed, will it have to proved and in what manner...

Interesting times...
 
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