Do I get TRS when I am paying interest only?

Sarenco said:

For sure.

Lenders certainly should be treating taxpayers' money with the utmost of care and systems issues are no excuse for denying anybody a relief to which they are legally entitled for any longer than is absolutely necessary.

However, there's a world of difference between an organisation struggling to get their systems in order (or not putting sufficient resources in place to sort issues out in a prompt fashion) and a deliberate or conscious attempt to misappropriate funds, which appeared to be the original suggestion.

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The FSO case suggests misinterpretation rather than a "struggling" IT issue.

Not sure how you are reading that from Harry Whelan's report but whether it's an IT issue or not there's an onus on the bank and/or Revenue to sort it out ASAP.

I have it in writing that I am not the only customer who has had this issue. After my second or third contact with the Revenue I found the tone slightly peeved off with me; as if I was pestering them.

On another note are unemployed people entitled to TRS even if they are paying their mortgage?

Employment status is not relevant - all that matters is whether a borrower is making interest payments on a qualifying home loan.

Could you give us some more details on your own case? How long has this been going on, etc?

Some months ago I seen my mortgage rise by approximately €300.00 per month I thought it was interest rate fluctuations. I contacted my bank and I was informed the variable rate had not changed. I was busy with work and I never got a proper chance to investigate the matter further. Each month went by and the mortgage would slightly rise again by a few Euro. I contacted the bank again and was informed that no trs was applied to the account as I had missed a mortgage repayment and in lieu trs ceased. When I noted this error I immediately cleared the debt and reapplied for trs. It has been some months and trs has not been applied to my main mortgage and a top loan I have. I went into discussions with the bank and was informed that yes they had received my file from the revenue but returned it marked (error) and said their system was not compatible and the revenue will need to resend instructions in a different format. This will take another couple of months.

I sit here on a variable 4.4 repaying over 2k per month with no trs and no way of moving my mortgage. I am mortgage product illiterate and pray this campaign for Variable Rate Customers gets a just hearing.

I think at this stage you should make a formal complaint to the bank and, if necessary, escalate to the FSO. You are legally entitled to this relief and the bank don't appear to be dealing with this problem with any sense of urgency.

Here's a guide to making formal complaints that may be of some assistance:-

http://www.consumerhelp.ie/financial-complaints

I'm surprised this issue hasn't received any media attention - I'm sure you are not the only borrower with this problem.

Good luck.

Tens of thousands likely affected but true number depends on policy of each banksome may be applying partial relief correctly

Raging Bull said:

Tens of thousands likely affected but true number depends on policy of each banksome may be applying partial relief correctly

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Kerrigan's problem pretty clearly relates to a lack of urgency on the part of the bank to resolve an IT issue.

You appear to be alleging something else but your actual complaint is not clear to me. Could you spell it out for us?

The bank won't give me relief im legally due

Have they given you any reason why? Has Revenue confirmed that they have issued the appropriate file to your lender? Are you making full or partial repayments?

I too would like to hear the reason you received Raging Bull.

In my own case the Revenue confirmed they had issued the appropriate file to my lender but my lenders IT system doesn't like the Revenue's format.

When I first contacted Revenue and they asked me was I repaying full capital and interest and had no arrears because they said no TRS will be applied to a mortgage that is not repaid in full each month. I informed them I repaid my two mortgages in full each month. Only when I said this did they then agree they would send my file to my lender.

I was also informed by the Revenue that my lender should issue me with a refund.

Yes, I agree I need to make a formal complaint to the lender and then to the FSO.

no reason really was provided other than their interpretation is correct,,, mine were partial payments.,, revenue agreed partial payments qualify for relief

Ok, so you're making partial payments of the qualifying interest due and your bank is refusing to credit your account with reduced TRS payments to reflect the actual interest paid. Is that correct?

I don't think there is any doubt that reduced qualifying interest payments qualify for reduced TRS - is your bank suggesting otherwise?

Or is it simply the case that your bank are saying that they will only credit your account on an annual basis for qualifying interest actually paid in that year?

Sarenco said:

I don't think there is any doubt that reduced qualifying interest payments qualify for reduced TRS - is your bank suggesting otherwise?

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I cannot speak for Raging Bull but this is what both revenue and some banks are suggesting. I informed the revenue I was paying full payment every month and the civil servant I spoke with clearly stated that you would not be entitled to any TRS if you weren't repaying the full amount. There are supposedly new rules in place suggesting this.

Your problem appears to differ from that of Raging Bull.

It is important that the two are not confused.

Kerrigan said:

Revenue confirmed they had issued the appropriate file to my lender but my lenders IT system doesn't like the Revenue's format.

When I first contacted Revenue and they asked me was I repaying full capital and interest and had no arrears because they said no TRS will be applied to a mortgage that is not repaid in full each month. I informed them I repaid my two mortgages in full each month. Only when I said this did they then agree they would send my file to my lender.

I was also informed by the Revenue that my lender should issue me with a refund.

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If I am reading your posts correctly, in your case, your bank accepts that you are entitled to TRS but cannot apply it due to an IT systems incompatibility issue.

However, Raging Bull's problem does not involve IT issues.

In his case, his bank does not accept that he is entitled to TRS due to what he feels is a misinterpretation of TCA 1997 s 244 (TRS) and which is contrary to Revenue guidelines.

I have been dealing with the same individual in the Revenue regarding my procurement with obtaining TRS; even when I was out of work I always paid at least interest only. TRS stopped and I was informed by this individual that I was not able to receive TRS because I was repaying interest + capital and wouldn't receive TRS until I either cleared my arrears or my provider recapitalized them. My provider did recapitalize the arrears but TRS was still not applied. I am in the same boat as kerrigan whereas the lenders computer system is not in sync with the Revenue's hence not being able to obtain TRS.

What if a mortgage holders payment is paid at a later date but still paid within the same month - does this disqualify them from TRS.

PatrickJ said:

I have been dealing with the same individual in the Revenue regarding my procurement with obtaining TRS; even when I was out of work I always paid at least interest only. TRS stopped and I was informed by this individual that I was not able to receive TRS because I was repaying interest + capital and wouldn't receive TRS until I either cleared my arrears or my provider recapitalized them. My provider did recapitalize the arrears but TRS was still not applied. I am in the same boat as kerrigan whereas the lenders computer system is not in sync with the Revenue's hence not being able to obtain TRS.

What if a mortgage holders payment is paid at a later date but still paid within the same month - does this disqualify them from TRS.

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If as you say, you have always paid interest, then there would have been no reason for the TSR to have ceased. See Revenue Guidelines quoted below.

Did you miss any payments?


“What is changing?
With effect from January 2014, Revenue has instructed all Lenders to only pay TRS on the actual interest paid to a mortgage account.

How will this impact on borrowers paying full interest but no capital each month?
Where a borrower pays the interest portion in full this change will have no impact.

How will this impact on borrowers who make partial payment each month?
Where borrowers only make a partial payment the amount of TRS granted will be reduced to reflect the actual amount of interest paid.

How will this change impact on borrowers that miss occasional payments? For example will they have to reapply for TRS each time that payments recommence?
Where a borrower is eligible for TRS the account ‘re-qualifies’ for mortgage interest relief once payments have resumed. However, depending on how the Lender has implemented the change to interest paid, the borrower may not immediately receive the TRS credit on resumption of the mortgage payment. While there may be a delay, the borrower will receive the TRS based on the amount of interest paid subject to applicable ceilings and rates.”

Hi,

I accumulated arrears because I was unable at that time to meet my full repayment. I had no agreement in place with the lender hence the arrears.

However, lets say my payment was due on the 1st day of each month I paid the interest only on the 10th day of the month. Not good I know but at that time I just hadn't got the money.

Thank you very much for your interest and time giving on this thread; it's been very helpful.

I think that because you paid the interest later in the month than the due date, your lender (or your lender’s IT system) may have regarded these as missed payments, which appears to be why TRS was discontinued.

There would obviously, be a delay before TRS is resumed.

When did you resume making interest payments on the due date each month?

Approximately four months ago.

Do you think I would eligible for an TRS rebate for all the payments I did make considering they were a few days late?