# Mortgage Tax Relief cancelled due to arrears???



## leemc (7 Sep 2011)

My husband was laid off work last year and I only have a part time job. Like so many others we've been struggling to make ends meet and have fallen into arrears with our mortgage. Just received letter from mortgage company stating that the Revenue have advised them to cancel mortgage tax relief for anyone in arrears and therefore our monthly payment is now increased by €160. Can they do this? Has anyone else had a letter like this? I'm at my wits end and cant cope anymore. I cant even manage the regular payment nevermind another €160. We have our mortgage almost 4 years so thought we'd have it for another 3 years. I dont know what to do. We have been dealing with the Council in relation to the arrears. I'm just wondering has anyone else had their mortgage interest tax relief cancelled? I thought the government were hoping to help people who are struggling and now this government department have made a move like this.


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## rameire (7 Sep 2011)

it is my understanding that as you are not paying the interest on your loan the revenue will cease to pay the trs, this has always been the way but they have never inforced it.
have you applied fpr interest relief from the social.


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## hastalavista (7 Sep 2011)

if u can manage the interest element of the payment should that not sort the problem


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## Brendan Burgess (7 Sep 2011)

The Revenue apparently has written to the banks and told them to strictly enforce the laws. 

You get tax relief on interest paid.

If you don't pay the interest, you don't get the tax relief. 

Brendan


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## MugsGame (7 Sep 2011)

If you are making even partial repayments you must be paying some interest and therefore are entitled to some relief on interest paid. Has your relief been reduced entirely, or just to an amount that covers your actual interest? Or is the issue that are not making any repayments at all? In which case Revenue are unfortunately correct...

Or do Revenue distiguish between "interest" and "penalties" ?


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## Bronte (8 Sep 2011)

This is the first time this issue has been mentioned on AAM.  Revenue are correct if you don't pay interest than you can't get mortgage interest relief.  There are no two ways around this.  

Have you checked with social welfare to see if you are entitled to mortgage interest supplement and have you engaged with your bank?


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