Tracker interest rebate and loss of TRS for year

Pyrite-home

Registered User
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Hello,

I am trying to understand the logistics of this. We were fortunate enough to get our tracker back. We received a letter saying our tracker would be restored and we would receive back payments in interest and capital to when we should of initially been returned to tracker. We received the overpayments of capital as cash refund and the interest we were told sits on the account so we accepted that.

This month I noticed that our montly payments had gone up from the previous month. When I rang the bank they explained that our TRS has stopped as we are in interest credit for the year more than likely so our payments have gone up by the TRS amount for 2012.

Maybe I am not fully getting this but its feels like we are loosing out on the TRS for this year because of the banks mistake ?.

We also need to contact revenue to explain that our tracker rate has been backdated so we will owe revenue the difference for that period which I understand but dont get loosing out this year.

If someone could explain it to me I would be grateful.
Thanks !.
 
You would have gotten TRS on the interest when you originally paid it, so you can't get relief on the same payment twice.
 
These figures are way off and very approximate but here goes.
Lets say you pay 1000 a month on your mortgage. This is made up of soemthing like 600 off the principle and 400 interest. You get relief on the interest of 400 of say 20% which is 80.
Total paid monthly 1000 - 80 = 920
If the interest you are now paying is say 300 then 20% is 60 so you were overpaid a relief of 20. Over a few years all these 20s add up and this is deducted at the full 60 rate till it balances out.
Total paid monthly 900 - 60 = 840 plus the amount of 20 outstanding multiplied and devided by the amount of months left in the year OR maybe a once off this month depending on how much is owed.
Does this make sense ?
 
Hi Elacto, thanks for taking time to reply, I get your explanation but the way the bank is communictaing it is different. They say we owe revenue for what we were overpaid as a seperate discussion. What we have is interest credit on our account, so in affect we can have no TRS while we are in interest credit. But my confusion is that say we had of demanded the over payments of interest back in cash which I know some people have managed than obviously we would still owe revenue for overpayments but our mortgage repayments would continue as normal with no credit sitting on our account ?. Am I reading this wrong. To be honest I have phoned revenue but they are none the wiser ! :), they just told us to send in everything when we have the breakdown in writing for our interest rebate, they dont know why TRS is now stopped.
 
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