Very specific question about TRS?

I’m a newly registered user, but have been lurking here for a long time now, and have learned so much, in particular about pensions and mortgages, so thanks for all that info.



My boyfriend and I have recently purchased a house and I am now wondering if someone can help with me with a very specific mortgage interest relief (TRS) question. I learned from searches here that it can take up to 7 weeks before the effects of TRS might be seen paid back into a bank account, however this morning there was a credit into my bank account for €299.89 which the bank tell me is TRS. Can someone tell me how this figure was arrived at, no amount of manipulation of the figures by me is coming anywhere near €299.89?



Here are some details:

Mortgage paid solely from one bank account with BOI

Mortgage is from ICS

Both boyfriend and I are FTBs are both jointly named on mortgage and have both returned TRS1 form.

First Mortgage payment paid October 18th, second one due November 18th

€299.89 credited to bank account November 2nd.



Thanks in advance

TRS is €66.66 per month. So, you're right this makes little sense. It seems to be 4.5 months worth of TRS. Mine gets credited to my bank account the same day my mortgage goes out.

Best to give them a call - they are very helpful. 1890 46 36 26

Is it meant to be €66.66 for everyone or does it depend on the value of your mortgage. Myself and my boyfriend get €109 (€58 each) per month, we both pay 42% tax.

Do you both get relief @ 20% of €4000 interest?

Oasis doesn't mention double relief for unmarried couples:

From personal experience I've noticed that the amounts and dates of relief can be a bit haphazard across the year.

As long as you check the total at the end of the year it doesn't greatly matter.

Suspect that your uneven number may trace to the year's relief being spread across less than a full calendar year in your case as it's a new mortgage.

Cahir said:

Is it meant to be €66.66 for everyone or does it depend on the value of your mortgage. Myself and my boyfriend get €109 (€58 each) per month, we both pay 42% tax.

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Depends on the amount of interest. Guess that you're paying a bit less than €8000 interest annually on your mortgage at the moment. If you're paying more then moneyhoney's above figure is the correct one.

But clearly from your post (ref. my previous one) co-habiting singles are entitled to the married relief. Good of Oasis to mention it not.

TRS is a funny one. In my own particular situation we get trs of €163 per month as our mortgage began in May. In other words your relief is normally spread over 12 months like tax credits therefore if the mortgage begins later in the year you have "credits/trs" built up in advance.

another cause could have been when you drawed down original you could have paid interest only for a number of days (again this happened in my situation - i pay interest only from drawdown date 15 april to 30 April) so this interest would again be brought into the calculation for trs.

Finally the revenue are now much quicker at applying trs again in my case it was almost instantaneous (one or two weeks) well for the revenue of course.

My figures were as follows so same logic applies:
Mortgage interest only 366 Paid 1/5/2005
Mortgage int p.m. 658 Paid 1/6/2005 onwards (total payment gross 949)

therefore total interest for 2005 (658 * 8) + 366 = 5,630
As we are first time buyers all allowed at 20% = 1,126

So from 1/6/2005 trs applied (8 months but onyl 7 payments) = 1,126/7 = 161

Mortgage gross 949 less trs 161 = 788 which is what we pay each month

hope this helps!!

ps a co-habiting couple both get a single allowance which works out the same as a married allowance.

In order to calculate I need the following

When did you take our the mortgage
What was the principal amount.
What is the interest rate

Thanks for all the replys. I suspected that it had something to do with the fact that it a new mortgage, and that we have only been paying it since October.

The details for asdfg -
Mortgage drawn down - Friday 19th August 2005
Principal Amount - €290000
Interest Rate - 3.1% (1.05% above ECB Rate)

More info needed unfortunately

Term of loan as interest will differ depending on the length of the loan

Thanks

Hi
The term is 35 years.

Ta

Sorry quick query,

you stated mortgage drawn down 19 August but first payment made 18 October. Did you pay interest onyl for the first month (ie 18 September - again this would affect the figures.

I have crunched the numbers and it doesnt add up so my guess is the difference between draw down date and first payment date will affect it.

Can you remember making a payment prior to the official first payment?

for example my first payment was for interest only of €366 then the official payment kicked the following month

Just had a look at my account, and the first mortgage payment was on October 5th and not 18th as I originally said, but I definitely didn't make any other payment on the mortgage prior to this.

I guess the main thing is that the TRS is sorted and when the mortgage payment for November is taken, then perhaps it will become clearer??

Thanks for all the replies

Wollran

I calculate the amount due to each of you is 324.72 (based on the first year 2005 being paid in full) I have used a rate of 3.05% ie 1.05% over ECB (ECB currently 2%)

Calculated as follows
290000 * 3.05% = 8,845 (Interest for year)
19 August to 31 December 134 days
8,845 /365*134 = 3,247.21 @ 20% = 649.44 /2 = 324.72

Allowing for a small reduction to alow for the fact that you made repayments so reducing the interest each month

Contact the TRS section and ask how was the relief is calculated.
Did your boyfriend also get a similar amount to you.

I’ve contacted TRS department at the Revenue and also ICS and have had the figures above explained to me – I thought I would post the explanation, as it may help someone else.



The total amount of interest that we will have paid for 2005 is €3051 – ICS were able to confirm this figure. €3051 * 20% = €610.20. €299.89 has already been credited to my account, and €305.10 (the remainder) will be credited when the next mortgage payment is made. The lady at ICS assured me that in 2006 there will be regular equal monthly TRS payment.



This is the total amount of TRS for both my boyfriend and I, so it looks like I owe him a few €€€’s



Thanks for the replies.



Wollran

Can't figure out how then arrived at 3,051. I make it a little higher. When I was calculating TRS on my mortgage I was able to calculate to the cent the amount due in the first year using Excel. Check out the statement at the end of the year.

BTW if interest rates increase before the end of the year you will be due additional refund.

asdfg, do you still have that spreadsheet available. i'm trying to put together a few spreadsheets for mortgage and related calculations