tax back on mortgage capital overpayments?

G

garryks

Guest
Hi,
I've been paying a bit extra off the mortgage capital, about 2k per year. I believe the bank deals with the tax allowance/credit on the normal monthly payments. But what happens to the tax on these overpayments? Is it normal for the bank to automatically take this into account somehow?
 
R

Repaymentator

Guest
The allowance is for the interest you pay. If the total amount of interest you pay during the year is more than your allowance, making extra repayments has no implications.

If you've only got a small outstanding balance this will not be the case. I came into this position last year with AIB and this year have noticed that the revenue credit is less than 20% of the interest paid. So they seem to be automatically clawing back last years overpayment of revenue credit to me.
 
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