FG's pledge to increase mortgage interest relief for first time buyers

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Paulk

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During their election campaign, Fine Gael vowed that if they were elected to Government, they would help mortgage customers in difficulty. Part of their pledge was to increase mortgage interst relief to 30% for first time buyers who bought during the boom (2004 -2008).

Now that they are in power, do you think that the party will honour their promise?

If so, how long before mortgage interest relief for first time buyers is increased?

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I would imagine it won't happen until the next budget and the promise was to increase it to a maximum of 166 a month. I know most people who bought at the peak of the market almost get this amount of relief anyway so it will only mean a few euro difference a month. Hardly groundbreaking. I know quite a few people who voted FG on foot of this though.
 

I thought that the maximum amount of mortgage interest relief was already €188?
 
they said the issue would be examined, but that doesnt necessarily mean extra relief. they might move on it quickly enough as they mentioned 1st time buyers mortgage interest relief abolition in june 2011
 
Max mortgage interest relief for an individual was €2500 p.a. or €208.33 p.m.

Anyone from 2007/2008 would by now be on max of €2250 p.a. (€187.50 p.m.)
Anyone from 2005/2006 would by now be on max of €2000 p.a. (€166.66 p.m.)
Anyone from 2004 would by now be on max of €1500 p.a. (€125.00 p.m.)

The FG proposal would be to bring all of this group up to €3000 p.a. (€250.00 p.m.)

Double all of the above for a couple

I haven't seen detail on this though. They say the 30% rate will replace the sliding scale of 25% to 20%. 2004 FTBs receive only 15%, however. The 15% rate is supposed to apply until 2017 currently, it's not clear wheter this would now become 30%.

If implemented in 2012, this has the potential to benefit only those who bought from 2006 - 2008 and would only be a very temporary benefit (in 2012 only for 2006 purchasers, in 2012 & 2013 for 2007 purchasers and in 2012, 2013 & 2014 for 2008 purchasers). It's not very clear what's being promised.

As an aside, if you're on a tracker +1%, you'd need a loan of 500k to be getting the max, but that amount would be more modest for higher fixed and variable rates (and tracker rates when the ECB raises its rates)
 
Well it looks like that none of this will happen until 2012.

FG had initially said that they would abolish mortgage interest relief for first time buyers from this june onwards. Now this has been pushed back to 2012.
 
I noticed a large increase in my TSR today, up to €170 from €105, was thinking it was the new higher first time buyers rate but obviously not. Any idea what the increase could be?? Thanks,
 
Was their an interest rate increase by your mortgage provider maybe?
 
ok, this is probably a really stupid question regarding trs BUT here it goes anyway!! i changed from a fixed rate of 3.25 which was due to expire next month to a fixed rate of 4.39 and my confirmation letter from the bank stated the amount of trs and it had increased by about 70euro or so. if the interest rates increase, does the trs increase?? i thought it was just a set amount?!
also, as a couple (not married), does this affect the amount? Just looking at an above post that says "double all of above for a couple" We're currently receiving about 208/month on the new fixed rate
 
Instead of increasing mortgage interest relief for first time buyers how about them scapping it altogther as a tax saving measure and if need be using some of the savings to increase the relief for those who bought at the height of the market who are struggling.
 
How about the look at people who have 10 years or less on their mortgage left. They have received years and years of TRS already. Bought when prices were more normal and have small mortgages left and smaller monthly repayments.
I know they would have little interest within payments at this stage but a levy on the last 10 years of mortgages could be introduced, as Like I said they received more TRS than anyone over a long period, so would have been more equitable to hit them than FTB's now who may only get TRS for a few years.
This group can afford it more than anyone. Those who extracted equity could be looked at separately if needed.
In a climate where the country desparately needs measures to find monies for other measures why not? The fact that this would effect typical FG voters and those in their 50's more than anyone else means probably not. But these are the largest group of savers at the moment and probably have more disposable income than others also.
 
First time buyers TRS ramped up massively in 2007, so I don't think people who bought their first home more than 20 years ago have benefited as much from it as those who bought their first homes in the last decade.

Personally I'd abolish TRS for everyone within a year or two and target the savings towards partially funding the massive increase in mortgage interest supplement for those in genuine difficulty
 

2007 is within the years the government is going to increase further 04-08.
I simply cant see how someone who got TRS for 20 years can have got less than someone who got it for 4. TRS is been abolished over a wind down period which is more needed for these people than the 'grey' pound who can afford to give more.
 
As details of the 2012 Budget will shortly be announced, what changes do you think the Government will make to mortgage interest relief?

Will Fine Gael honour their pledge to increase mortgage interst relief to 30% for first time buyers who bought during the boom (2004 -2008)?
 
Paulk said:
Will Fine Gael honour their pledge to increase mortgage interst relief to 30% for first time buyers who bought during the boom (2004 -2008)?
Click to expand...

As they have failed to honour most of their pre-election pledges, I expect that this will be no different.
 
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