Calls for loans cover to be mandatory
WITH thousands of householders experiencing mortgage problems, there have been calls to introduce tax relief on mortgage repayment protection (MRP) policies, and even to make them mandatory.
Karl Deeter, operations manager of Irish Mortgage Brokers says: "Any insurance which reduces a person's need to rely on the State should come with a tax benefit, because they are saving the Exchequer a potential loss."
Financial adviser Liam Croke has also called on the Government to introduce tax relief on MRP policies.
In a written proposal recently submitted to both Finance Minister Brian Lenihan and the then Social and Family Affairs Minister Mary Hanafin, he also suggested that MRP cover could be a legal requirement in the same way as mortgage life cover.
Mr Croke argues that doing this would eliminate the need for mortgage interest relief, which is set to be fully phased out by 2017.