Calculation of Mortgage Interest Relief liability

Hi

I managed to get my tracker back from the bank after being incorrectly on a standard variable rate for the last four years. However I now have a liability to the Revenue for overpayment of TRS.

They are waiting for the bank to confirm the rates they applied to calculate this. However given we are talking about Ulster Bank here we could be waiting a while. In the meantime I would rather have some form of idea now how I need to settle up so I can budget accordingly. Tax has always been my weak point so was hoping some smart person could kindly calculate or direct me to a calculator!

My mortage was €266,800 over 39 years taken out in May 2005. From November 2008 to November 2012 I was incorrectly on an SVR at about 4.95%. This should have been ECB rate + 1.05%. I got married in February 2010 to someone who didnt own a house in case that makes a difference.

Thanks to anyone who can help!

anyone? I'm getting sriously worried that I havent' allocated enough to cover this!

Peteb. When did the new tracker rate commence. Was it from 1st December 2012.
Have you got your refund yet or the amount that they have agreed to refund.
Get a precise breakdown of the way the have calculated your refund. You are also entitled to interest on the amount that they overcharged you and be firm on this. When you have this information you can then contact revenue and see what the position is. I do not see any reason for you panicking until you get the documentation and refund. It is possible that the bank will refund the TRS to revenue and send you the net amount. Make sure you have all clarified as soon as you get your money with revenue and the bank.

Don't know if this will help you but here's a pretty straightforward mortgage calculator and here is the Revenue Commissioners page with information about TRS for mortgage interest.

You might be able to compute the excess (if any) TRS claimed- it is possible that your TRS would have been capped irrespective of the interest rate charged as it's likely that you were paying a large amount of interest in the period. There are limits as set out on the Revenue Commissioners page that limit the maximum amount of tax relief on mortgage interest.

Dermot it was with effect from December 2008. I know the amount due back but the bank didn't give a break down of how they calculated. They probably should do as they expect you to settle up yourself. Revenue have requested the numbers from them but.....

Deadlyduck, tried that but can't get my head around it!

Peteb,

Remember me? Congrats on finally getting your tracker back!! Well done! Its been a long and arduous slog 4 you. If you remember I too am in the same boat, quickly approaching the 6 year mark and would like to pick your brain on UB's purposefully long drawn out process. You might PM me when you have a mo.

Cheers Peteb