Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Taking a payment holiday on a mortgage!

Options
  • 23-04-2005 4:27pm
    #1
    LFCFan
    Moderators Posts: 3,816 ✭✭✭


    We are looking into taking a 2 month payment holiday from our mortgage and I'm wondering how this will effect our mortgage tax relief? Will the 2 months we are not paying mean the tax relief for those 2 months will be spread over the rest of the year which might offset some of the extra payment we would have to pay because of the 2 months interest we wouldn't have paid??


Comments

  • Options
    #2
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    Mortgate relief is so small, that I doubt it would have any effect at all on your tax relief, unless you have a pretty small mortgage.

    As far as I know, the relief is calculated on the basis of your interest payments within a given year. As long as your interest payments for the year don't fall below their limits, I think you'll still get it.

    It's only around 50 euros/month or 100 euros/month for a couple isn't it? It's not going to make that much impact.


  • Options
    #3
    LFCFan
    Moderators Posts: 3,816 ✭✭✭LFCFan


    It wouldn't make much of an impact on the mortgage but it's €200 I'd rather not lose either! Basically, what I need to know is, does the tax relief get paid to the account every month regardless of whether we make a mortgage payment or would it just be spread out over the rest of the year?


  • Options
    #4
    0utshined
    Closed Accounts Posts: 1,746 ✭✭✭0utshined


    LFCFan wrote:
    It wouldn't make much of an impact on the mortgage but it's €200 I'd rather not lose either!
    Dead right mate!
    LFCFan wrote:
    Basically, what I need to know is, does the tax relief get paid to the account every month regardless of whether we make a mortgage payment or would it just be spread out over the rest of the year?

    I don't think so , it only gets credited back when a payment leaves your account. When I first took out my mortgage there was a delay in the TRS getting set up for the first two months so I received about €80p.m. rather than ~€60 for the rest of that year.

    HTH,
    0.


  • Options
    #5
    masterK
    Registered Users Posts: 2,757 ✭✭✭masterK


    You won't get the tax relief for the months that you don't pay. I presume by taking a holiday you will pay a little more over the life of the mortgage, in that case you will get a little more tex relief with each repayment.

    You could also change your mortgage to pay over 10 months every year and have a two month break each year. That's what I do, you simply pay a little more each month and have 2 months of no mortgage each year, you therefore get higher tax relief in the 10 months that you pay your mortgage.


  • Options
    #6
    LFCFan
    Moderators Posts: 3,816 ✭✭✭LFCFan


    masterK wrote:
    You won't get the tax relief for the months that you don't pay. I presume by taking a holiday you will pay a little more over the life of the mortgage, in that case you will get a little more tex relief with each repayment.

    You could also change your mortgage to pay over 10 months every year and have a two month break each year. That's what I do, you simply pay a little more each month and have 2 months of no mortgage each year, you therefore get higher tax relief in the 10 months that you pay your mortgage.
    So basically you're saying that there is a set amount of Tax Relief for a year and if you pay your mortgage over 8, 10, 12 months or whatever, this relief is spread evenly over those months? Does anyone know of any mortgage calculators on the net that could work out the repayments if we changed to a 10 month mortgage?


  • Advertisement
Advertisement