There has been alot of confusion over Mortgage Interest Relief since the budget but even more so in the last few days. Confusion has increased because it has now come to light that some who do qualify for the interest relief will loose it temporarily. The reason for this is that it is going to be hard for the revenue to clarify whether or not certain customers qualify for the relief.
The change in the budget is not that confusing in itself. Basically anyone who has had a mortgage for longer than seven years will no longer qualify for tax relief. The Revenue has clarified the Mortgage Interest Relief Budget changes on their website.
Haven Mortgages (EBS Group) have also clarified how some people who will still qualify for the relief might loose it temporarily while the changes are introduced.
Haven Mortgages Statement
"As you may be aware, the recent Budget introduced changes to Tax Relief at Source (TRS) which will affect some mortgage cusotmers. From the 1st May 2009 all qualifying mortgages will receive TRS for the first seven years of the mortgage only.
Consequently, to allow the Revenue to administer this change in the TRS rules, TRS has been temporarily ceased for all non-first time buyers with immediate effect. The Revenue has committed to carry out a review of all affected accounts and will, at a later date, reinstate TRS on all accounts that continue to qualify for relief.
For example, customers who may have switched lenders in the early years of their mortgage or purchased a second property are no longer considered first time buyers by the Revenue - but will retain the balance of TRS still available to them until the seven year period has expired - this category of customer will have TRS reinstated as part of the Revenue's review at a later date (to be notified)."
Haven Mortgages clarification of this matter is very welcome and helpfull. In a seperate statement the revenue have confirmed that, "the relief at source should be reactivated in June where an entitlement is established, and that any arrears will be credited to customers accounts automatically"
Over the next month there are going to be alot of mortgage holders who will loose their Mortgage Interest Relief temporarily. With all the other recent tax increases this extra burden has come at a bad time for hard hit mortgage holders.
Thursday, April 30, 2009
Friday, April 24, 2009
Sick of your Credit Card Bill? These four tips should help you get the balance cleared as soon as possible
Your credit card can be your friend or your enemy, depending on how you use it. For example, if you spend sensibly and always repay your monthly bill in full, then you can enjoy up to 59 days of interest-free credit.
Sadly, most of us often spend too much and cannot afford to clear the balance in full each month. Once your credit card balance becomes a multiple of your monthly income you are in trouble. It can be tempting to pay just the minimum balance each month but this is just a long road to nowhere.
However don’t despair. Here are five ways to deal with your credit card debt.
1/ Play by the Rules
If you go over your credit limit, miss a repayment, or fail to pay on time, then you have broken your card's terms and conditions. As a punishment, your card provider will charge you a fee, typically €15 for each and every offence.
Therefore, it's vital to ensure that your monthly payments are on time. The best way to do this is to set up a direct debit for at least your minimum monthly repayment. Then you can top up the minimum payment with extra payments when you can.
2/ Scrap your payment protection insurance
Credit Card Payment Protection insurance is one of the biggest rip-offs ever. Some payment protection policies like Mortgage Payment Protection can be worthwhile, however avoid Credit Card Payment Protection at all costs; it’s just a money spinner for the credit card companies and an extra cost you can do without.
So, unless you're claiming on your policy, or expect to lose your job any day soon, then cancel your cover and put the saving towards reducing your debt.
3/ Get a 0% balance transfer
Even with the credit crunch in full swing there are still credit card providers offering 0% balance transfer deals. You should get your balance transferred to a 0% card as soon as possible and use the 0% introductory rate time period to get as much of the balance paid off as possible.
4/ Avoid minimum monthly repayments
If you are paying just the minimum balance each month then it will take you forever and a day to clear your debt. This is because the minimum monthly repayment taken by most credit cards is a very low percentage of the monthly balance.
In the current economic climate it is easier said than done to pay over and above the minimum payment each month. However no matter how tight things are you have to work on reducing the balance and above all else stop spending on your card.
Finally, remember that a credit limit is not a credit target. It can be a good idea to reduce your credit limit as you reduce your balance but ultimately your target should be to get your balance to zero as soon as possible.
Sadly, most of us often spend too much and cannot afford to clear the balance in full each month. Once your credit card balance becomes a multiple of your monthly income you are in trouble. It can be tempting to pay just the minimum balance each month but this is just a long road to nowhere.
However don’t despair. Here are five ways to deal with your credit card debt.
1/ Play by the Rules
If you go over your credit limit, miss a repayment, or fail to pay on time, then you have broken your card's terms and conditions. As a punishment, your card provider will charge you a fee, typically €15 for each and every offence.
Therefore, it's vital to ensure that your monthly payments are on time. The best way to do this is to set up a direct debit for at least your minimum monthly repayment. Then you can top up the minimum payment with extra payments when you can.
2/ Scrap your payment protection insurance
Credit Card Payment Protection insurance is one of the biggest rip-offs ever. Some payment protection policies like Mortgage Payment Protection can be worthwhile, however avoid Credit Card Payment Protection at all costs; it’s just a money spinner for the credit card companies and an extra cost you can do without.
So, unless you're claiming on your policy, or expect to lose your job any day soon, then cancel your cover and put the saving towards reducing your debt.
3/ Get a 0% balance transfer
Even with the credit crunch in full swing there are still credit card providers offering 0% balance transfer deals. You should get your balance transferred to a 0% card as soon as possible and use the 0% introductory rate time period to get as much of the balance paid off as possible.
4/ Avoid minimum monthly repayments
If you are paying just the minimum balance each month then it will take you forever and a day to clear your debt. This is because the minimum monthly repayment taken by most credit cards is a very low percentage of the monthly balance.
In the current economic climate it is easier said than done to pay over and above the minimum payment each month. However no matter how tight things are you have to work on reducing the balance and above all else stop spending on your card.
Finally, remember that a credit limit is not a credit target. It can be a good idea to reduce your credit limit as you reduce your balance but ultimately your target should be to get your balance to zero as soon as possible.
Thursday, April 23, 2009
Springboard Mortgages Announcement
Shane O'Sullivan, Managing Director of Springboard Mortgages has today made the following announcement to Mortgage Brokers,
"It is with great regret that I write to advise you that Springboard Mortgages is to cease new lending with effect from 30 June 2009.
This decision follows a review by senior management within the Irish Life & Permanent Group. It was prompted solely by the challenging funding conditions which continue to exist in the marketplace."
This is disappointing news for the Irish Mortgage Market. Springboard has been a well run organisation and has provided a valuable service to all its existing customers.
MortgageLine would like to wish everyone at Springboard all the best for the future.
"It is with great regret that I write to advise you that Springboard Mortgages is to cease new lending with effect from 30 June 2009.
This decision follows a review by senior management within the Irish Life & Permanent Group. It was prompted solely by the challenging funding conditions which continue to exist in the marketplace."
This is disappointing news for the Irish Mortgage Market. Springboard has been a well run organisation and has provided a valuable service to all its existing customers.
MortgageLine would like to wish everyone at Springboard all the best for the future.
Sunday, April 19, 2009
Thinking of buying a house? Here are four things you need to do to make sure you will be ready
1/ Save a deposit
Saving a decent deposit is very important for buyers hoping to secure the best mortgage. As well as being in steady full time employment a mortgage lender will want to see proof that you are capable of saving towards your first home.
It is possible to get help with your deposit from parents or family but you will need some history of savings or paying rent to show repayment capacity. AIB and Bank of Ireland for example will not approve you for a First Time Buyer mortgage if you have no proven repayment capacity. The two main ways to show repayment capacity are as follows. The first option is to save consistently for at least 6 months prior to seeking mortgage approval. The second option is to be able to show your monthly rent being paid from your bank account for at least 6 months. A consistent saving or rent history will substantially increase your chances of getting a mortgage.
2/ Get your bank account and credit rating in order
As well as preferring borrowers with a history of savings, mortgage lenders also want people who keep their bank accounts in good order. You will need to pay your bills and loans on time, preferably by direct debit or standing order. Referral fees and missed direct debits will ruin your chances of getting a mortgage.
If you are worried that you may have had some credit problems in the past then you can check your credit rating with the Irish Credit Bureau at http://www.icb.ie/ You can apply online for a copy of your credit report and you will then be able to see if there is a problem or not.
3/ Talk to a Mortgage Broker
A good mortgage broker can help you compare the different mortgage products available and help you decide which one's best for you. They will also know what each mortgage lender will and won't do for you. So by using a Mortgage Broker you give yourself the best possible chance of getting approved and also of getting the best deal.
However, before you choose a mortgage broker bear in mind that some brokers offer products from a limited number of lenders while other brokers offer products from a wide range of lenders. It's a good idea to do some research of your own and see what lenders your chosen broker has access to.
4/ Get mortgage approval in principle
Before you go house hunting make sure you have a mortgage approval in principle. There is no point looking at properties and then realizing that they are out of your price range.
To get an approval in principle you will generally need the following documents,
6 months bank statements
3 recent payslips and a P60 if you are a paye employee or
2 years audited accounts if you are self-employed
savings statements
Loan statements
It is never too early to seek mortgage approval. A good mortgage broker like MortgageLine will not charge you anything for getting an approval in place. If it is not possible to get an approval now then you can get pointers on what you will need to do to get an approval at some point in the future.
Saving a decent deposit is very important for buyers hoping to secure the best mortgage. As well as being in steady full time employment a mortgage lender will want to see proof that you are capable of saving towards your first home.
It is possible to get help with your deposit from parents or family but you will need some history of savings or paying rent to show repayment capacity. AIB and Bank of Ireland for example will not approve you for a First Time Buyer mortgage if you have no proven repayment capacity. The two main ways to show repayment capacity are as follows. The first option is to save consistently for at least 6 months prior to seeking mortgage approval. The second option is to be able to show your monthly rent being paid from your bank account for at least 6 months. A consistent saving or rent history will substantially increase your chances of getting a mortgage.
2/ Get your bank account and credit rating in order
As well as preferring borrowers with a history of savings, mortgage lenders also want people who keep their bank accounts in good order. You will need to pay your bills and loans on time, preferably by direct debit or standing order. Referral fees and missed direct debits will ruin your chances of getting a mortgage.
If you are worried that you may have had some credit problems in the past then you can check your credit rating with the Irish Credit Bureau at http://www.icb.ie/ You can apply online for a copy of your credit report and you will then be able to see if there is a problem or not.
3/ Talk to a Mortgage Broker
A good mortgage broker can help you compare the different mortgage products available and help you decide which one's best for you. They will also know what each mortgage lender will and won't do for you. So by using a Mortgage Broker you give yourself the best possible chance of getting approved and also of getting the best deal.
However, before you choose a mortgage broker bear in mind that some brokers offer products from a limited number of lenders while other brokers offer products from a wide range of lenders. It's a good idea to do some research of your own and see what lenders your chosen broker has access to.
4/ Get mortgage approval in principle
Before you go house hunting make sure you have a mortgage approval in principle. There is no point looking at properties and then realizing that they are out of your price range.
To get an approval in principle you will generally need the following documents,
6 months bank statements
3 recent payslips and a P60 if you are a paye employee or
2 years audited accounts if you are self-employed
savings statements
Loan statements
It is never too early to seek mortgage approval. A good mortgage broker like MortgageLine will not charge you anything for getting an approval in place. If it is not possible to get an approval now then you can get pointers on what you will need to do to get an approval at some point in the future.
Thursday, April 9, 2009
Is now a good time to fix my mortgage?
Personally I think that now is a great time to think about fixing your mortgage. Although it is expected that interest rates will fall again next month is is debatable whether or not lenders will pass on further reductions to fixed rates.
Fixing for 3 or perhaps even as long as 5 years is an option. Some banks are offering 10 year fixed rates but that is an awfully long time to commit to.
AIB have good fixed rates on offer. For example you can fix for three years at 3.1% or for five years at 3.6%.
These are great rates to fix in at, however fixing your mortgage rate might not be the best option if you,
1/ are currently on a good tracker rate
2/ might need to move house before the end of the fixed rate
3/ want to pay off lump sums
If you are not affected by the above then fixing might be a good idea. Despite the fact that there may be another rate cut next month there is not much further that rates can go. You could say we are close to the bottom of the current rate cycle.
Once the economy starts to improve (and it will at some stage) rates will undoubtedly start to creep up again. Chances are that rates will edge back up to 4 or 5% and so fixing in at anything under 4% has to be a good idea.
Fixing for 3 or perhaps even as long as 5 years is an option. Some banks are offering 10 year fixed rates but that is an awfully long time to commit to.
AIB have good fixed rates on offer. For example you can fix for three years at 3.1% or for five years at 3.6%.
These are great rates to fix in at, however fixing your mortgage rate might not be the best option if you,
1/ are currently on a good tracker rate
2/ might need to move house before the end of the fixed rate
3/ want to pay off lump sums
If you are not affected by the above then fixing might be a good idea. Despite the fact that there may be another rate cut next month there is not much further that rates can go. You could say we are close to the bottom of the current rate cycle.
Once the economy starts to improve (and it will at some stage) rates will undoubtedly start to creep up again. Chances are that rates will edge back up to 4 or 5% and so fixing in at anything under 4% has to be a good idea.
Thursday, April 2, 2009
The European Central Bank has just announced that it is reducing the ECB rate to 1.25%.
This is more great news for all homeowners on tracker or variable rates. Todays reduction of 0.25% will mean a saving of approx €25 per month on a mortgage of €200,000 over 25 years.
With rates now at an all time low and with little room for them to fall any further, now is a great time to think about a fixed rate.
AIB for example now has a great 2 year fixed rate of just 2.8% and there are lots of other great fixed rate deals on offer too.
If you are interested in a Free Mortgage Review to see what your options are you need to apply-online with MortgageLine today.
This is more great news for all homeowners on tracker or variable rates. Todays reduction of 0.25% will mean a saving of approx €25 per month on a mortgage of €200,000 over 25 years.
With rates now at an all time low and with little room for them to fall any further, now is a great time to think about a fixed rate.
AIB for example now has a great 2 year fixed rate of just 2.8% and there are lots of other great fixed rate deals on offer too.
If you are interested in a Free Mortgage Review to see what your options are you need to apply-online with MortgageLine today.
Wednesday, April 1, 2009
First Time Buyer Mortgage
It is no secret that property prices have fallen over the past year or so. This could mean that now is a good time. In the past Irish property prices have without doubt been overpriced. However with property now more affordable it is a very good time to buy - particularly for those who have nothing to sell.
Be careful about waiting for prices to go down even further. If you have found a place you want to live in then go for it. The chances are it will go up in price over the long term. (Remember you are buying a HOME not an investment, somewhere to live and that you can reasonably afford).
So while prices might go down even further does that matter? In the long run they will probably go higher than they are now.
If you need a First Time Buyer Mortgage then the following might help.
Whats the first step?
The first thing you need to do is get yourself into a position where you have access to a deposit. The maximum mortgage for Irish First Time Buyers these days is 92%. This means you will need a deposit of at least 8%. This can be from savings or a gift from a family member.
As well as being in permanent employment or self employed for more than 2 years a Mortgage Lender will generally also look to see that you can afford the new mortgage repayment. A track record of saving and or a history of rental payments will help your case.
Should I go direct or with a Broker?
Unless you are a personal finance expert you will need help and advice with the important decisions. You could go direct to your own bank but will they give you the best deal? A better option is to use an Independent Mortgage Broker who has access to at least seven mortgage lenders. Getting a mortgage is harder today than it has been for several years. A good broker will make sure you get what you need or as close to it as possible and also get you the best deal.
Should I opt for a fixed, variable or discounted rate?
With interest rates falling recently variable rates have been flavor of the month. However with the ECB rate now at 1% it is hard to see how rates can go any lower. With this in mind it could be a good time to think about fixing. The world economy will eventually pick up and when this happens rates will inevitably start creeping back up again.
How much can I borrow and how much will it cost me?
The amount you can borrow will generally be 4 or 5 times your yearly salary. However this varies between lenders for different types of borrowers.
There are some great First Time Buyer packages available at the moment with lenders like AIB offering rates as low as 2.4% and ICS (Bank of Ireland Group) offering €1,000 cashback.
If you are in the market for a First Time Buyer Mortgage contact MortgageLine for a Free Mortgage Review.
Even if you are not thinking of buying straight away it is never too early to contact us and see what your options are.
Stephen Hamilton
MortgageLine.ie
Be careful about waiting for prices to go down even further. If you have found a place you want to live in then go for it. The chances are it will go up in price over the long term. (Remember you are buying a HOME not an investment, somewhere to live and that you can reasonably afford).
So while prices might go down even further does that matter? In the long run they will probably go higher than they are now.
If you need a First Time Buyer Mortgage then the following might help.
Whats the first step?
The first thing you need to do is get yourself into a position where you have access to a deposit. The maximum mortgage for Irish First Time Buyers these days is 92%. This means you will need a deposit of at least 8%. This can be from savings or a gift from a family member.
As well as being in permanent employment or self employed for more than 2 years a Mortgage Lender will generally also look to see that you can afford the new mortgage repayment. A track record of saving and or a history of rental payments will help your case.
Should I go direct or with a Broker?
Unless you are a personal finance expert you will need help and advice with the important decisions. You could go direct to your own bank but will they give you the best deal? A better option is to use an Independent Mortgage Broker who has access to at least seven mortgage lenders. Getting a mortgage is harder today than it has been for several years. A good broker will make sure you get what you need or as close to it as possible and also get you the best deal.
Should I opt for a fixed, variable or discounted rate?
With interest rates falling recently variable rates have been flavor of the month. However with the ECB rate now at 1% it is hard to see how rates can go any lower. With this in mind it could be a good time to think about fixing. The world economy will eventually pick up and when this happens rates will inevitably start creeping back up again.
How much can I borrow and how much will it cost me?
The amount you can borrow will generally be 4 or 5 times your yearly salary. However this varies between lenders for different types of borrowers.
There are some great First Time Buyer packages available at the moment with lenders like AIB offering rates as low as 2.4% and ICS (Bank of Ireland Group) offering €1,000 cashback.
If you are in the market for a First Time Buyer Mortgage contact MortgageLine for a Free Mortgage Review.
Even if you are not thinking of buying straight away it is never too early to contact us and see what your options are.
Stephen Hamilton
MortgageLine.ie
Subscribe to:
Posts (Atom)