Switching Mortgage / Mortgage interest relief

V

valley123

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We are considering switching our mortgage to another lender. What will be our status as regards mortgage interest relief? We are first time buyers at the moment and would like to hold onto that status as the interest relief is slightly higher. Any advice appreciated!!!!!!!
 
The switch won't effect your TRS allowance, it'll just mean you'll have to fill out a new TRS form with the new providers a/c number on it and send it off to relevant revenue dept. You might have to chase them (TRS dept) to make sure they give you the credit in a speedy manner.
 
You retain your First Time Buyer status for 7 years upon drawing on your first mortgage (provided you don't move house or trade-up, etc.) J
 
Hi, I have recently remortgaged with a different company and previously I was getting first time buyers relief. Now I am only getting owner occupier relief which is quite a bit less. Does remortgaging affect your status,
thanks
 
peelaaa said:
Now I am only getting owner occupier relief which is quite a bit less. Does remortgaging affect your status,
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No. The reasons for a reduction in the level of mortgage interest relief in respect of a principal private residence are (a) you are paying a substantially lower amount of interest and therefore qualify for a lower amount [20% of actual interest paid]; (b) you're now in your 8th year since buying your first house [assuming you've had mortgages approximately continuously for the period]; or (c) something's gone wrong with the paperwork somewhere.

Assuming neither (a) nor (b) applies, give the TRS people in Revenue a call at 1890 46 36 26 to see how best to correct it.
 
Hi, The previous mortgage was my 2nd but my wifes 1st, so how do the revenue calculate that,
thanks
 
That's not relevant - what's relevant is the length of time for which you had the mortgages.

1. Did you get your first mortgage more than seven years ago?
2. Did you get your second mortgage (that is, with your wife) more than seven years ago?

If the answer to both (1) and (2) is yes, then neither of you qualifies as an FTB and the maximum relief you can get this year is €1200.

If the answer to both (1) and (2) is no, then you may both still qualify for FTB relief and the maximum relief you can get this year is €4000.

If the answer to (1) is yes and the answer to (2) is no, then I am very nearly (but not totally) certain that you can use the remaining period of your wife's FTB status and your standard relief, making the maximum relief you can get this year €2600.

And if the answer to (1) is no, and (2) is yes, I'd like a go on your time travel machine please!

Remember that the relief allowable is 20% of the interest actually paid or the maximum amounts above (depending on your circumstances), whichever is the less.

Hope that helps.
 
I had my 1st mortgage in 1999 and sold in 2001. I lived abroad and bought again in 2004 with my wife. So should I still have a ftb allowance for years I wasn't here from 2001 to 2004.
 
peelaaa said:
I had my 1st mortgage in 1999 and sold in 2001. I lived abroad and bought again in 2004 with my wife. So should I still have a ftb allowance for years I wasn't here from 2001 to 2004.
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I'm not sure on this, because I suspect (but don't know) that any year in which you claim mortgage interest relief is deemed to be a full year. Therefore, 1999-2001 would be three years, and 2004-2007 would be four, and in 2008 you would no longer qualify for FTB levels of relief.

Since no-one else informative seems to have noticed this thread today, and your questions are definitely past what I can answer, I'd strongly recommend jotting down all the details (addresses of properties, approximate dates - at least month of the year - properties bought and sold, your PPSN and your wife's) and calling Revenue to ask them.
 
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