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Query about mortgage interest refief

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  • 21-12-2008 11:25pm
    #1
    jimmymook
    Closed Accounts Posts: 4 ✭


    Hi
    Can someone help with a query on TRS please:

    *I bought a house in 2004, FTB. Mortgage 200,000.

    *Mortgage interest rate ECB +0.85% (3.35%)

    *I got a letter from my bank saying the monthly payment will change from 780.37 to 773.20 in January, which is inclusive of 109.71 TRS credit.

    Is this right? After the rate cut in November my TRS credit was 186.11

    Thanks


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    #2
    NEDDURC
    Registered Users Posts: 452 ✭✭NEDDURC


    200,000 * 3.35% = 6,700 * .2 = 1,340 / 12 = €112 per month
    200,000 * 4.1% = 8,200 * .2 = 1,640 /12 = €137 per month

    According to my calc there you should have lost out on €25 a month TRS. Not sure where you're 186 is coming from. If you're interest is below limit then what you gain by drop in rate is partially wiped out by loss of TRS relief.
    On a similar point the government increasing mortgage interest relief limits probably won't benefit anyone with the drop in rates other than fixed mortgages with large sums.


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