Mortgage interest supplement

Independent. Sorry, lost the link.

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

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

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

In about 2028…

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. :imp:

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.

I want thirty fuckin grand?!

:open_mouth: €30k in Interest Only :open_mouth:

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 ???

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

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?

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.

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

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."

So just how much are these punters getting?

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

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:

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.

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.

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 :slight_smile:

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.

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.