Mortgage interest rate measures

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Having a look back at my 2015 AIB variable rate mortgage LTV>80% (which they would not allow me to leave) I was paying 4% interest at the time. I'm not sure what interest relief I was getting, circa €850 PA was the average according to the Below article. AIB variable rates went as high as 4.5% in 2013 according to this post. https://www.askaboutmoney.com/threa...d-variable-mortgage-rate.202173/#post-1534416

I fixed my mortgage in august 2022 @2.1% for this I am thankful but why should my taxes be going to tracker holders that could have done the same instead of crying into the soup. Excluding those on vulture fund rates obviously, these guys don't need a leg up.

Why does the government feel the need to give tracker mortgage holders jam on both sides?

www.irishtimes.com

Hundreds of thousands to lose mortgage interest relief

Scheme to be phased out by end of 2017
www.irishtimes.com www.irishtimes.com
 
Reading the Q&A from Deloitte on RTE.ie they are suggesting an Income Tax return needs to be filed to get this relief. Also LPT needs to be up to date.
 
I genuinely think a lot of people won't claim this relief, I'd be very interested to see how much it ends up costing! A lot of folk don't do a tax return and don't even claim their medical expenses, remote working etc. And I would wager that a lot of inertia relates to lack of understanding of interest rates so I can't see people claiming anything on this.
 
Harvard said:
Having a look back at my 2015 AIB variable rate mortgage LTV>80% (which they would not allow me to leave) I was paying 4% interest at the time. I'm not sure what interest relief I was getting, circa €850 PA was the average according to the Below article. AIB variable rates went as high as 4.5% in 2013 according to this post. https://www.askaboutmoney.com/threa...d-variable-mortgage-rate.202173/#post-1534416

I fixed my mortgage in august 2022 @2.1% for this I am thankful but why should my taxes be going to tracker holders that could have done the same instead of crying into the soup. Excluding those on vulture fund rates obviously, these guys don't need a leg up.

Why does the government feel the need to give tracker mortgage holders jam on both sides?

www.irishtimes.com

Hundreds of thousands to lose mortgage interest relief

Scheme to be phased out by end of 2017
www.irishtimes.com www.irishtimes.com
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Most of those on trackers paid high prices for their homes.

Many would bite the hand off for a 2015 price.

An average 3 bed home owner in mid market Dublin bought in 2006 on a 1% tracker and 25 year mortgage, is paying about €2,400 a month.

Someone buying the same home in 2015 is no where near that type of payment.
 
GingerH said:
Me too - I decided - based on advice here a few months back not to fix my tracker but to whack up my payments significantly by 2.5 times (and divert money I was going to save/invest)- in order to pay it off early, as I can afford to do so and in order to finish it out .It looks like I am getting an unexpected bonus for this decision.
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Yup. I personally know of a couple of people who pretty much made the same conscious decision (along with many more I’d say) to stick with their tracker and not fix. Nice little bonus on the way. It’s certainly not ‘targeted relief’ for those struggling.
 
misemoi said:
I genuinely think a lot of people won't claim this relief, I'd be very interested to see how much it ends up costing! A lot of folk don't do a tax return and don't even claim their medical expenses, remote working etc. And I would wager that a lot of inertia relates to lack of understanding of interest rates so I can't see people claiming anything on this.
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You should not have to do a full tax return per say, it should be just like the medical expenses claim, in Revenue My Account, which is just uploading interest cert for the two years, and entering the numbers.

If people are interested in claiming for it, they will organise themselves accordingly,perhaps get whatever help they need.

It is targetted in-terms of, only those who had an increase in interest rates, qualify, but they should have done a lot more for those trapped in vulture fund mortgages, allthough they are in the process, of introducing a scheme, to get them off those expensive mortgages.
 
peemac said:
Most of those on trackers paid high prices for their homes.

Many would bite the hand off for a 2015 price.

An average 3 bed home owner in mid market Dublin bought in 2006 on a 1% tracker and 25 year mortgage, is paying about €2,400 a month.

Someone buying the same home in 2015 is no where near that type of payment.
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Nobody put a gun to their heads that was their choice to buy and if they could afford a tracker repayment in 2006 they had an extremely good run of it apart from the last 12 months or so.
 
I was on a fixed rate in 2022 until we sold the house in July 2023, rate now is close to double. Will we get relief since we drew down the new mortgage?
 
I remortgaged and topped up this year and am on a variable rate now/previously fixed..am I excluded from the relief ?
 
I broke out of a 2.9% rate six months early late last year to fix for 3.0% for five years.

I knew which way the wind was blowing. By the time the six months was up the best I could have got with my provider was 3.5%, now it’s 4.0%

It seems a bit daft to be compensating people who made no effort to fix the roof when the sun was shining.
 
Dr Strangelove said:
I broke out of a 2.9% rate six months early late last year to fix for 3.0% for five years.

I knew which way the wind was blowing. By the time the six months was up the best I could have got with my provider was 3.5%, now it’s 4.0%

It seems a bit daft to be compensating people who made no effort to fix the roof when the sun was shining.
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The issue is that if you are a tracker holder, you lose your tracker if you fix. Hence the better long term view if you think the ECB will move back to 2% or less as the market expects to happen within 2 years, is to keep your tracker.

I'll benefit to the tune of about €650. It's not a huge amount, it's not going to make a big difference and I'd agree, it was not necessary. But I'll take it

Yep, they caved in to SF on it as sf would have made sure the headlines were all about this if nothing was done, so in a way they were covering all the angles.

Watching sf grasp at straws probably made it worth every cent
 
Spoke very well. The only bit of clarity on the show.

This seems to be a case of privatising the wins from tracker mortgages but socialising the risk.

Its also more about supporting people who are seeing a change in there situation that those who are actually in a worse situation. I guess that's politics.
 
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