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Mortgage Interest Relief Query

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  • 01-02-2013 8:02pm
    #1
    Only one Keano
    Registered Users Posts: 176 ✭✭


    Hiya

    I own an apartment since 2006 (first mortgage repayment was May 2006) and I noticed today that my mortgage interest relief was c €175 lower this month than normal. It's the first time it has ever changed from its usual amount.

    I have had issues paying my mortgage last three months so have a verbal agreement with the bank for a 3 month moratorium for these payments missed (Dec, Jan & Feb) and then interest only from then on as I will start a new job in coming weeks. I am just waiting on the paperwork to be processed but they have told me they are happy to proceed with this new agreement.

    The bank also said they didn't think any of this would impact the mortgage interest relief I would receive so I am a little unsure as to why this amount is so much lower?

    If anyone has any ideas on why the relief is so low this month and if it will stay this low in coming months, please feel free to help us out!

    Thanks! :)


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    #2
    cookie1977
    Registered Users Posts: 6,794 ✭✭✭cookie1977


    You have moved from the 30% on 10,000 interest to 30% on 3000 interest as you're 7 years in to your mortgage. Have a look at revenue.ie

    It will stay at that rate till 2017.


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    #3
    rameire
    Registered Users Posts: 4,152 ✭✭✭rameire


    you are in year 8 of the trs.
    thus meaning your ceiling has reduced from 10,000 per person to 3,000 per person.

    your trs is on a rate of 30% of the ceiling or yearly mortgage interest whichever is lower.

    this is the reason your trs has reduced
    and will stay around this level.

    trs runs on a calendar year, jan to dec.

    🌞 3.8kwp, 🌞 Split 2.28S, 1.52E. 🌞 Clonee, Dub.🌞



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    #4
    Mollyd90
    Registered Users Posts: 608 ✭✭✭Mollyd90


    I was about to post a similar question.

    Our TRS was also reduced this month. My boyfriend and I are both first time buyers and took out our mortgage in 2006. So am I right in saying that we both should have €3000 ceiling on interest now its 2013. As our interest is about €4500 per year our TRS shouldnt have being reduced?

    thanks and sorry for highjacking your thread OP

    Got my answer in a different thread.

    I'm with BOI so for the first few months of last year they gave us 25% TRS and then from April/May it was increased to 30% interest relief and also the back payment was divided evenly over the year. They could have sent us a letter telling us this some part of the year.


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    #5
    inspiron6000
    Registered Users Posts: 61 ✭✭inspiron6000


    I got my mortgage in July 2011 and my TRS has reduced by about €30 this month. Any ideas?


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    #6
    bee06
    Registered Users Posts: 4,514 ✭✭✭bee06


    inspiron6000 wrote: »
    I got my mortgage in July 2011 and my TRS has reduced by about €30 this month. Any ideas?

    If you are a first time buyer it's probably because your rate has decreased from 25% to 22.5%. Here's a link to the revenue website that shows the rates and ceilings depending on what year you took your mortgage out in and the current year

    http://www.revenue.ie/en/tax/it/reliefs/tax-relief-source-mortgage-rates.html


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