Mortgage interest supplement

[A_Random_Walk]

New figures show that on June 6, 5,023 people were getting the benefit known as a mortgage interest supplement, compared with 4,111 in December 2007 and 3,524 in June last year.

The cost of the scheme, which was €12m last year, is also likely to spiral as more homeowners get into difficulties.

Independent. Sorry, lost the link.

[provost]

here:
independent.ie/national-news … 10443.html

[verbatim]

The new figures are corroborated by the Society of St Vincent De Paul, who say middle-class couples mortgaged up to the hilt have become the fastest growing group seeking charity help and advice.

Someday I’ll wake up and all this will have been a bad dream.

[daltonr]

The new figures are corroborated by the Society of St Vincent De Paul, who say middle-class couples mortgaged up to the hilt have become the fastest growing group seeking charity help and advice.

Naturally when these Middle Class folk get back on their feet, they’ll all remember SVdeP and will contribute as much as they can to help others who get into trouble.

-Rd

[jake76]

Naturally when these Middle Class folk get back on their feet…

In about 2028…

[xman]

“The cost of the scheme to the tax payer has also jumped from €7.8 million in 2006 to €12 million last year and, judging from the 42 per cent increase in applicants this year, the cost is set to rise dramatically again for 2008. Last year, the householders on mortgage assistance received an average of €30,000.”

Thirty fucking grand from the government to pay my mortgage interest!!

That’s more than most people take home after tax in a year!

Sounds like these 5,023 people have won the lottery and I bought the ticket for them.

Now, what’ll 30 grand a year in interest get me? A nice red brick in Phibsboro or Glasnevin? Then I’ll get “into trouble” with my mortgage payments and Government Mortgage Bailout Scheme - here I come!!

I might even buy something in Howth or Portmarnock with water views. The best property 30 grand a year of taxpayer’s money can afford. None of your luxury eggboxes either, mind you. For that kind of money I’m gonna be living in a lovely house.

And there I was thinking that housing had become unaffordable in Ireland. I never knew you just take out a massive loan, stop paying it, and then the government steps in. Gift.

[Blindjustice]

I want thirty fuckin grand?!

[2Pack]

"The cost of the scheme to the tax payer has also jumped from €7.8 million in 2006 to €12 million last year and, judging from the 42 per cent increase in applicants this year, the cost is set to rise dramatically again for 2008. Last year, the householders on mortgage assistance received an average of €30,000.

"

€30k in Interest Only

Tells us the average household on an average 300k mortgage is paying 10% interest . Do I detect a whiff of sub prime about all this ???

[igy]

Will they check I have a mortgage, or just sign over the cheque?

[spqr64]

How long will the dole pay this money for?
Is it indefinite and will it have to be paid back?
Surely there is a time limit on this otherwise this WILL become a serious drain on the public purse as interest rates increase and the economy slows?

[2Pack]

No limits, for now .

Remember they only pay interest on a mortgage not principal but if its taken out with a sub prime lender who mainly lends to self employed tradesmen you can guess the damage it will do to the public purse.

[Blindjustice]

this is nuts? am I to believe that they are givin these people huge amounts of money so that they can hold onto properties thus keepin the cost of living artificially high?
WTF WTF WTF WTF WTF

[jake76]

It’s all very vague. There is a max of 12 months but this is Ireland they might stop for a month and start again for another 12 months, who knows.

". MORTGAGE INTEREST SUPPLEMENT
2.1 Purpose of Mortgage Interest Supplement

The purpose of mortgage interest supplement is to provide short-term income support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only. The capital element of the repayment is not taken into account in calculating the amount of supplement payable as it is not considered appropriate that the Exchequer should repay part of the initial loan and thereby provide assistance towards the accumulation of a capital asset on the part of the individual concerned.

2.2 Qualifying Conditions

A person may be entitled to a supplement towards the amount of mortgage interest payable by him or her in respect of his or her residence provided that:

he or she is habitually resident in the State (effective 1 May 2004).
the loan agreement was entered into at a time when, in the opinion of the Health Service Executive, the person was in a position to meet the repayments.
the residence in respect of which the loan is payable, is not offered for sale.
The Health Service Executive must be satisfied in all cases that:

the amount of the mortgage interest payable by the claimant does not exceed such amount as the Health Service Executive considers reasonable to meet his or her residential and other needs.
it is reasonable to award a supplement having regard to the amount of any arrears outstanding on the loan.
In exceptional circumstances, the Health Service Executive may award a supplement where the amount of mortgage interest payable by a person exceeds such amount as the Health Service Executive considers reasonable to meet his or her residential and other needs. Such supplement is payable for a maximum of 12 months from the date of the claim."

[jcsmith]

Last year, the householders on mortgage assistance received an average of €30,000…

The State-backed mortgage interest supplement – designed to help householders to meet the interest on their mortgages – is paid by the Department of Social Welfare. Homeowners are means tested and most are already on some form of social welfare benefit.

So just how much are these punters getting?

Joan Burton, the Labour Party’s finance spokesperson, said the figures were further evidence of how the economic slow down is already seriously affecting homeowners. She said that some families already struggling with higher mortgage repayments were doubly caught because their houses were now worth less than what they paid for them, forcing them into a poverty trap.

“People are also facing the phenomenon that the houses in the estate next to them are selling for €50,000 to €100,00 cheaper than what they bought for,” she said. She said banks had to bear some responsibility for offering 100 per cent mortgages.

“I actually think that banks should step up to the table and be part of the solution. There are a variety of solutions. They could give some degree of interest holidays. They could cut some of the charges. I think there are things they could do,” she said.

And why would they give an interest holiday as long as there are suckers like us willing to bail them out?

[jcsmith]

It’s all very vague. There is a max of 12 months but this is Ireland they might stop for a month and start again for another 12 months, who knows.
…
In exceptional circumstances, the Health Service Executive may award a supplement where the amount of mortgage interest payable by a person exceeds such amount as the Health Service Executive considers reasonable to meet his or her residential and other needs. Such supplement is payable for a maximum of 12 months from the date of the claim."

I read this as meaning that an excess supplement is only payable for a maximum of 12 months. Looks like a regular supplement can be paid indefinitely. This seems to be confirmed by this document:

How long does it last?

Payment will continue as long as your circumstances remain the same. You may continue to receive payment for up thirty days after you start work or until you are first paid whichever is the sooner. Your claim will be reviewed every three months. To assist with this review, a form will be sent to you, which the lending agent must sign to confirm the amount of your repayments. If your situation changes in any way before a review, you must tell the Community Welfare Officer straight away.

[spqr64]

No limits, for now .

Remember they only pay interest on a mortgage not principal but if its taken out with a sub prime lender who mainly lends to self employed tradesmen you can guess the damage it will do to the public purse.

I cant help thinking of the subbies from the construction industry who took on huge mortgages when the money was flying in and are now using the state to dig them out as their work dries up. I think we will be seeing the old tricks coming out of the bag as things get worse. E.G.she says he left her while hes in the UK or abroad earning. Its like the late 80s early 90s are coming back to haunt us for our recklessness.

[Edenmore_AOK]

Thirty fucking grand from the government to pay my mortgage interest!!

That’s more than most people take home after tax in a year!

I take home €31,068 per annum. I’ve read this thread and - hey presto - I’m twice as well off!! And to think I couldn’t afford a gaff!!

Here’s what’s worse. I make €47k. I pay the maximum allowable for my age (15%) into my DC pension. (Yes, I am guilty of planning for my own future. Perhaps I need not bother). This leaves €40k taxable so I pay €9k in combined PAYE and PRSI.

What this means, folks, is that there are 3 or 4 ordinary people like me working for the whole year paying tax JUST to cover their mortgage interest.

I feel sick.

[sorehead]

These figures sound wrong, 12m paid out to around 5000 people and the average payout is 30,000???

Huh? That average should work out at around 2400 euro.

[A_Random_Walk]

These figures sound wrong, 12m paid out to around 5000 people and the average payout is 30,000???

Huh? That average should work out at around 2400 euro.

He has a point you know

If the figure was really 30,000 and I’m guessing that the average interest bill for a FTB is about 10,000 , then there must be a lot of recipients living in plush areas of Dublin. I doubt that’s the case.

Personally I’m less concerned about the €12m, there will always be hard cases where some helpout is justified. I’m more worried about the rise in claimants and whether it continues to increase going forward.

[yoganmahew]

Having tried to get it when I was unemployed after 9/11, I can tell you:

• you can have no savings, shares, bonds etc.
• your spouse/partner/anyone else in the house can’t earn anything either
• you can’t have been self-employed

Whether these things are ‘in the rules’ or they were just saying they were is another question!

They are mad reluctant to pay it out, although it probably helps if you have children.