TRS-Why decreasing?

M

mcb

Registered User
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Hi

I am first time buyer and have mortgage for two yrs in March 2010. Why does the TRS reduce and therefore increasing my mortgage repayments. I just got letter to say it is being reduced (by approx €50)

Mortgage was 340,000 and on a fixed rate.

Thanks
 
Im in the same boat,you obv started your mortgage in 2008, so for 2008 and 2009 you were getting 25% TRS ,now that your into your 3rd it goes down to 22.5%
 
Thanks a mill, that clears that one up.

you wouldn't want to be waiting to get through to the Revenue!
 
I rang them the other day and they were sound,its a disgrace that if you get your mortgage in Dec 2008 that your 25% TRS runs out the same time as if you bought your house in jan 2008!
 
That doesnt seem fair at all. Does it decrease more in the coming years?
 
kopkidda said:
I rang them the other day and they were sound,its a disgrace that if you get your mortgage in Dec 2008 that your 25% TRS runs out the same time as if you bought your house in jan 2008!
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Yeah, I was in the same boat (started in a December) and found revenue clear and helpful when I called to check.

I'll count myself lucky though if I get the full 7 years (or 6 years in my case) of mortgage interest relief. In reality it should be means tested, although I'd say a good proportion of those within the 7 years would qualify for it if it was!
 
I was just saying that it doesnt seem fair that year 1 of TRS is counted whether you took your mortgage out in Jan 08 or Dec o8.
 
i took out my mortgage in december 2008, we didn't recieve the trs until march 2009. so, the amount that we missed out on for the 2 months was divided out for the remaining 10 months of the year. I got a letter the other day saying my trs was decreasing and when i rang revenue, that was the reason for it (i had forgotten about it!) If it was a case of dec 08 being my year one then i would have had a bigger decrease so i dont think they do do it that way??
 
Emma1980 said:
i took out my mortgage in december 2008, we didn't recieve the trs until march 2009. so, the amount that we missed out on for the 2 months was divided out for the remaining 10 months of the year. I got a letter the other day saying my trs was decreasing and when i rang revenue, that was the reason for it (i had forgotten about it!) If it was a case of dec 08 being my year one then i would have had a bigger decrease so i dont think they do do it that way??
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On my mortgage they apply interest quarterly with the final interest charge of the year being on 15th december. I started my mortgage on the 7th of December so I got mortgage interest relief on 1 weeks interest for the first year! This was added to the 2nd years relief but was so small that I didn't notice it. If revenue sent people an annual schedule of interest relief received it would clear up a lot of confusion.

I think it's possible that if I'd taken the mortgage out after the interest date (in december) the first year would not have counted as year 1.

To be honest nobody ever mentioned anything about it to me. Given that a lot of people like to close before christmas so they can be in their new house it's very surprising that this point is not more widely known.
 
I'm on a 5 year fixed mortgage (taken out Aug 2006), was a FTB with mortgage drawn down in Nov 2004.

I was notified that my TRS was going from 171 p/m down to 50, does this sound in any way correct?
 
Kemo_Sabe said:
I'm on a 5 year fixed mortgage (taken out Aug 2006), was a FTB with mortgage drawn down in Nov 2004.

I was notified that my TRS was going from 171 p/m down to 50, does this sound in any way correct?
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I think it goes down to 15% in year 5,maybe someone could clarify this.
 
reading from the Revenue website, it should be 20% in year 6 (we bought in 2004 so this should be Year 6), up to a ceiling of €10k. We're FTBs.

we're paying just over €1k p/m in mortgage interest so I think we should be getting relief as follows:

€10k * 20% = €2,000

so our monthly relief should be 166.66

looks like I'll have to call Revenue :eek:
 
We drew down our mortgage in December 2003 and didn't start receiving Mortgage interest relief until February 2004. We got a letter recently to say that we are no longer getting relief. So in short, we only received 6 years relief, not 7. When we bought our house, we weren't advised of this at all and I read through lots of documentation and didn't see anywhere advising buyers of this. I think it's a disgrace that all the people who move into their houses before Christmas are going to be hit like this and nowhere is there a warning about this.
I have been onto Revenue a number of times and have even made contact with the papers and The Joe Duffy Show on radio. I want to try to get the message out to as many people as possible.....NOT to buy in the latter part of the year because they won't get their full 7 years of relief.
 
smyth03 said:
We drew down our mortgage in December 2003 and didn't start receiving Mortgage interest relief until February 2004. We got a letter recently to say that we are no longer getting relief. So in short, we only received 6 years relief, not 7. When we bought our house, we weren't advised of this at all and I read through lots of documentation and didn't see anywhere advising buyers of this. I think it's a disgrace that all the people who move into their houses before Christmas are going to be hit like this and nowhere is there a warning about this.
I have been onto Revenue a number of times and have even made contact with the papers and The Joe Duffy Show on radio. I want to try to get the message out to as many people as possible.....NOT to buy in the latter part of the year because they won't get their full 7 years of relief.
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Yep, said pretty much the same thing to a chap in here who is thinking of buying a house!!
 
Kemo_Sabe said:
reading from the Revenue website, it should be 20% in year 6 (we bought in 2004 so this should be Year 6), up to a ceiling of €10k. We're FTBs.

we're paying just over €1k p/m in mortgage interest so I think we should be getting relief as follows:

€10k * 20% = €2,000

so our monthly relief should be 166.66

looks like I'll have to call Revenue :eek:
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just to update on this; I finally got around to ringing the Revenue TRS helpline yesterday. A very pleasant woman answered and told me that they had mistakenly filed our mortgage as having commenced in 2003, not 2004 as is actually the case. She told me to email in the details and it would be corrected by our lender.

So the moral of the story is...check up with the Revenue, they can get things wrong too!
 
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