Indo: IMF recommending that government abolish interest relief for those on trackers.

Article in today's Irish Independent, refers to the IMF recommending that the government abolish interest relief for those on trackers. What do people think of this?

Also (not recommended by the IMF, of course), but what would views be on the government increasing interest relief on mortgages where banks have been raising SVR rates? The government (FG) have continually maintained that they can't interfere in the operations of the banks (with particular reference to AIB following last month's rate rise), but increasing relief would not be interfering in the operations. Could this be a way for the government to balance the needs of the banks and cusomers (voters)?

How very dare they would be my opinion.

Considerable numbers of those benefiting from both a tracker and interest relief would be people who paid the worst peak prices. For the IMF to suggest hitting them in the pocket even though they are paying 'jumbo' mortgages is enraging.
Also never in Ireland's history has interest relief been discriminatory- has it?

Mrmr said:

Considerable numbers of those benefiting from both a tracker and interest relief would be people who paid the worst peak prices. For the IMF to suggest hitting them in the pocket even though they are paying 'jumbo' mortgages is enraging.

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True, but in this context the affordability of the 'jumbo' mortgages at tracker rates can be cheaper than more recent mortgages at high rates but lower capital borrowings. I'm not making the argument for this story but it must be considered that way I'd suggest.

I think its important to point out that not everybody who bought at peak prices was offered a tracker. I have a standard variable and bought in 2007 the very height of the boom. I was told I did not qualify for a tracker mortgage. It is without question that something needs to be put in place for homeowners who are left vulnerable with expensive variable mortgages.One group of mortgage holders should not be left with the burden of bailing out the banks.

Sounds like a divide and conker strategy, always thought interest relief was bananas but making out someone who purchased a home in 2004-07 is lucky is way off the wall

thunder said:

I think its important to point out that not everybody who bought at peak prices was offered a tracker.

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Agree another here without a tracker. We bought in 2005 and were considered not eligible for one as in order to secure our home which was an end of phase house we borrowed a small amount of our deposit. Despite the fact the money was paid back before we even moved in and was only a small portion of it (mind you it saved us money as there was a price jump for the next phase) it was given as grounds for not getting one.

I would happily trade my interest relief if they would change me from variable to tracker. Dreaming I know.

potnoodler said:

Sounds like a divide and conker strategy, always thought interest relief was bananas but making out someone who purchased a home in 2004-07 is lucky is way off the wall

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Not that old chestnut again...

gianni said:

Not that old chestnut again...

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Classic