Mortgage interest relief query

Hi Gmac,
If you are paying approx €1,500 per month on €290,000 over 30 years, your interest works out at approx 4.7% (closest rate according to my calculations.)
If you took out the mortgage in August 07 then the first payment would have been in Sep 07 and you would have made 4 payments in 2007.

For 2007 then, your 4 payments would have been as follows:
Year Month Principal Interest Balance O/S
2007 Sep 368.22 1135.83 289631.78
2007 Oct 369.66 1134.39 289262.13
2007 Nov 371.11 1132.94 288891.02
2007 Dec 372.56 1131.49 288518.46
2007 Totals 1481.54 4534.66 288518.46

As you can see from the above, your total interest paid in 2007 was approx €4,534.66. Your TRS then is €4,534.66 *20% = €906.93
It looks like Revenue have got it right for 2007 to be honest - so it might not be a good idea telling them that there is a mistake in 2007 (as it looks like there isn't) if you want them to take your query about 2008 seriously.
The amount of TRS you mentioned for 2008 looks like its too low alright - maybe you should just concentrate on the 2008 issue when speaking to Revenue.
 
Its 2008 is what I am worried about.

Am I best waiting until 1st Feb to what the next payment is or just call them.

I don't have time today to be waiting on a phone for at least 10 mins
 
Gmac said:
I don't have time today to be waiting on a phone for at least 10 mins
Click to expand...
So write to or email them as I suggested above? If you suspect that there are discrepancies with your tax issues then sooner you contact Revenue the better.
 
Hi All

I also have a query on mortgage relief, we are currently building a house and at present have drawn down €185000 with Ulster Bank for 30 yrs @ 5.59%. Both hubbie and I earn 26k per annum, how much would the relief be on the €1061 we pay each month?
We are planning on taking out no more than €210k in total.
Thanks
 
Got through after 15 mins.

They say its the mortgage peoples problem as they haven't inform the revenue what interest we will pay this year.

I should be getting around the 233 per month
 
poppy1 said:
Hi All

I also have a query on mortgage relief, we are currently building a house and at present have drawn down €185000 with Ulster Bank for 30 yrs @ 5.59%. Both hubbie and I earn 26k per annum, how much would the relief be on the €1061 we pay each month?
We are planning on taking out no more than €210k in total.
Thanks
Click to expand...

Your income is irrelevant. Entering €185K @ 5.59% over 30 years into Karl Jeacle's mortgage calculator gives:
Code: 
Year      Interest            Capital              Balance
2008      €10,279.33        €2,451.23         €182,548.77
2009      €10,138.73        €2,591.83         €179,956.94
2010      €9,990.08         €2,740.48         €177,216.46
2011      €9,832.92         €2,897.64         €174,318.82
2012      €9,666.73         €3,063.83         €171,254.99
2013      €9,491.00         €3,239.56         €168,015.43
2014      €9,305.18         €3,425.38         €164,590.05
2015      €9,108.75         €3,621.81         €160,968.24
2016      €8,901.00         €3,829.56         €157,138.68
2017      €8,681.34         €4,049.22         €153,089.46
2018      €8,449.11         €4,281.45         €148,808.01
2019      €8,203.54         €4,527.02         €144,280.99
2020      €7,943.90         €4,786.66         €139,494.33
2021      €7,669.38         €5,061.18         €134,433.15
2022      €7,379.09         €5,351.47         €129,081.68
2023      €7,072.14         €5,658.42         €123,423.26
2024      €6,747.62         €5,982.94         €117,440.32
2025      €6,404.48         €6,326.08         €111,114.24
2026      €6,041.62         €6,688.94         €104,425.30
2027      €5,657.98         €7,072.58         €97,352.72
2028      €5,252.34         €7,478.22         €89,874.50
2029      €4,823.44         €7,907.12         €81,967.38
2030      €4,369.94         €8,360.62         €73,606.76
2031      €3,890.39         €8,840.17         €64,766.59
2032      €3,383.39         €9,347.17         €55,419.42
2033      €2,847.28         €9,883.28         €45,536.14
2034      €2,280.44         €10,450.12        €35,086.02
2035      €1,681.05         €11,049.51        €24,036.51
2036      €1,047.33         €11,683.23        €12,353.28
2037      €377.25           €12,353.28        €0.00
If you are "FTBs" then you qualify relief on a maximum of 2 x €10K = €20K but since you pay less than that you get relief on the actual amount paid - e.g. in 2008 c. €10K @ 20% = €2K p.a. or €166.67 p.m. You will pay more interest if you go to €210K and so get slightly higher relief. For example:
Code: 
2008      €11,668.45        €2,782.43         €207,217.57
2009      €11,508.85        €2,942.03         €204,275.54
2010      €11,340.09        €3,110.79         €201,164.75
2011      €11,161.68        €3,289.20         €197,875.55
2012      €10,973.01        €3,477.87         €194,397.68
2013      €10,773.56        €3,677.32         €190,720.36
2014      €10,562.66        €3,888.22         €186,832.14
2015      €10,339.64        €4,111.24         €182,720.90
2016      €10,103.84        €4,347.04         €178,373.86
2017      €9,854.52         €4,596.36         €173,777.50
2018      €9,590.89         €4,859.99         €168,917.51
2019      €9,312.14         €5,138.74         €163,778.77
2020      €9,017.44         €5,433.44         €158,345.33
2021      €8,705.80         €5,745.08         €152,600.25
2022      €8,376.28         €6,074.60         €146,525.65
2023      €8,027.87         €6,423.01         €140,102.64
2024      €7,659.47         €6,791.41         €133,311.23
2025      €7,269.98         €7,180.90         €126,130.33
2026      €6,858.12         €7,592.76         €118,537.57
2027      €6,422.65         €8,028.23         €110,509.34
2028      €5,962.17         €8,488.71         €102,020.63
2029      €5,475.32         €8,975.56         €93,045.07
2030      €4,960.51         €9,490.37         €83,554.70
2031      €4,416.19         €10,034.69        €73,520.01
2032      €3,840.66         €10,610.22        €62,909.79
2033      €3,232.11         €11,218.77        €51,691.02
2034      €2,588.68         €11,862.20        €39,828.82
2035      €1,908.31         €12,542.57        €27,286.25
2036      €1,188.96         €13,261.92        €14,024.33
2037      €428.29           €14,022.59        €1.74
 
Gmac said:
Got through after 15 mins.

They say its the mortgage peoples problem
Click to expand...
I rang my mortgage provider and they said it was the Revenue that were dealing with it! I only got €46 trs this month..was expecting €166
 
Gmac said:
Got through after 15 mins.

They say its the mortgage peoples problem as they haven't inform the revenue what interest we will pay this year.

I should be getting around the 233 per month
Click to expand...

swordshead said:
I rang my mortgage provider and they said it was the Revenue that were dealing with it! I only got €46 trs this month..was expecting €166
Click to expand...
Revenue presumably need an update from the lender each year to give them a projected annual interest bill for the coming year. Presumably the lenders send this in when they have prepared annual statements to be send to the borrower?
 
Hi Gmac/swordshead,

Could you tell me which lender is involved (apologies if ye mentioned already, if so I missed it)?
Reason I ask is I doubt its Revenue's fault, they can only go on what they are informed by the lender as stated above - it may be a problem with 1 lender in particular - most clients who have received letters so far are getting the correct adjusted TRS, I would be very interested to hear which lender is involved so as to keep an eye on it for relevant clients. Cheers
 
Mortgageman said:
Hi Gmac/swordshead,

Could you tell me which lender is involved (apologies if ye mentioned already, if so I missed it)?
Reason I ask is I doubt its Revenue's fault, they can only go on what they are informed by the lender as stated above - it may be a problem with 1 lender in particular - most clients who have received letters so far are getting the correct adjusted TRS, I would be very interested to hear which lender is involved so as to keep an eye on it for relevant clients. Cheers
Click to expand...

I rang my lender there and they told me they haven't sent it yet.

I am with IIB
 
Hi tangerine,

I have only received €133 for the last year or so never went up over that, maybe you were getting more? is it a single purchase or two people??

have you any idea after the budget what it is going to be, i thought an increase?

dee











Tangerine said:
Hi,
I normally receive €166 per month mortgage interest relief and this has been reduced to €133 and am querying the rationale for this ammendment.
Morgtage Details:
First Time Buyer as at Dec 2006
Bank of Ireland: Intersest rate: 4.25% fixed for three years.
2007 : monthly instalment - €896.54. monthy interest relief €166.
2008: monthly instalment- €949.28 . monthly interest relief: €133
I would have presumed that the interest relief on the mortgage would have remained the same.
Many thanks for any assistance with this query
Tangerine
Click to expand...
 
The new rates of relief are summarised here:

[broken link removed]
Tax Relief at Source – Mortgage Interest Relief
 The current annual ceiling on the amount of interest that can be allowed on a mortgage is being increased with effect from 1 January 2008 for first-time buyers from €8,000/€16,000 single/married to €10,000/€20,000 single/married. The additional relief will be available for the first seven years for which there is an entitlement to mortgage interest relief.

The ceiling for non-first-time buyers remains unchanged at €3,000/€6,000 for single/married.
Click to expand...
€133 is the previous maximum relief for a single mortgage holder in the first 7 years/FTB relief timeframe:

€8,000 @ 20% = €1,600 p.a. or €133.33 p.m.
 
ClubMan said:
The new rates of relief are summarised here:

[broken link removed]
€133 is the previous maximum relief for a single mortgage holder in the first 7 years/FTB relief timeframe:

€8,000 @ 20% = €1,600 p.a. or €133.33 p.m.
Click to expand...

yes, i've been getting 133.33 a month, but was sure it was going to increace in 2008, but still getting 133.33

is there an increase, and i'm not getting it, or is there no increase?
 
What are the details of your mortgage - original amount and start date, term and rate?

If you will pay more than €8K in interest this year then you should eventually see an increase in the relief. You can claim relief on up to €10K rather than €8K this year . €10K @ 20% = €2K p.a. or €166.67 is the maximum reduction in repayment due to TRS for a single FTB this year. If you are entitled to increased relief but don't see it yet then maybe like others above your lender has simply not updated Revenue with the 2008 interest projection?
 
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