‘Mortgage payments from salaries’ petition signed by thousands

Almost 23,000 people have signed an official parliamentary e-petition calling for mortgage payment to come from gross salaries.

petition mortgages

A petition calling for homeowners to be able to make mortgage payments through their salaries and pay less tax, has received nearly 23,000 signatures.

The petition to Parliament calls on the Government to change the tax rules so mortgages could be paid in the same way as pension contributions.

If this was made possible, it would mean people would pay income tax and national contributions on smaller wage amounts.

“This would allow more people to become mortgage free sooner in life and put more towards their’s and their children’s future,” the petition lodged by Aqad Zane says,

The rising cost of living and house prices makes paying off a mortgage extremely challenging.”

“It could also help divorced couples, where people are having to start life all over again, on their own, at a late age.

“The rising cost of living and house prices makes paying off a mortgage extremely challenging for many people.”

The petition, which will be debated by MPs, also suggests that the amount people could pay towards their mortgage through salary sacrifice is capped.

Not realistic
Ray Boulger, Senior Mortgage Technical Manager, John Charcol

But Ray Boulger, senior mortgage technical manager at brokers John Charcol, says the petition has no realistic chance of being taken up by the Government.

He told The Neg the proposal is effectively the same as MIRAS, which was a scheme offered in the 1980s and 1990s when interest rates were higher.

The bigger issue is with buy-to-let mortgages and allowing landlords to offset mortgage interest.”

“The bigger issue is with buy-to-let mortgages and allowing landlords to offset mortgage interest against their profits,” he says.

“Most rates are going up and most buyers are going to pay 6%.”

By allowing investors to offset the mortgage interest, it would mean more rental properties were available and at lower rents,” he says.

Once petitions reach 100,000 signatures they are debated in the House of Commons.


One Comment

  1. I think this is a very interesting concept. Salary sacrifice is a great way to make tax savings and can release value in lots of different areas, particularly with pension contributions. Mortgage payments being taken this way could definitely be a way forward for many. The goal to be mortgage free is a huge undertaking and anything that makes this easier and helps make that goal more achievable is definitely worth considering.

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