The two parties negotiating to form a new cabinet are discussing further limits to mortgage tax relief, the Telegraaf reports on Wednesday.

The outgoing government plans to limit the tax relief for new mortgages to repayment mortgages from January 1 next year. But the Telegraaf says the tax break may also be phased out for existing interest-only mortgages.
The paper bases its claim on sources close to the negotiations. The right-wing VVD and Labour have been in talks on forming a new coalition since the September 12 general election and insiders expect an agreement could be signed in a matter of days.
The Telegraaf says a number of options for reforming the mortgage system are currently on the table. During the election campaign, the VVD said it would not agree to any further restrictions.
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