Will we get purchase completed by 31st Dec?

How about when you meet the estate agent that you explain what your thinking and tell him that you have to reduce your offer by what you will lose out on by commencing your mortgage payments in 2012. The vendors dragged their heals and were waiting on a better offer that never came. Things may have been done and dusted if they agreed the first time.
 
Met with the bank today and was onto the revenue by phone. It seems that we have to have the first payment made by Dec31 to qualify and that nobody can seem to answer the question of does a payment outside the regular monthly payments count.

We met with the estate agent and he didn't offer us any hope that the vendor would be willing to take any further money off the price due to the delay costing us the MIR.

All in all we have decided to wait until the spring time before we put in any more bids. Thanks for all the advice.
 
That will put manners on them - I would have thought that they'd jump at the offer!

You might consider letting us know how you get on gambelore.


ONQ.
 
Two months for closing is very tight - especially so when you consider that December and the silly season is one of those months.
Why don't you assume that it wont close in time and use that fact to negotiate the price downwards by €6K?
 
We are in the process of closing too and the bank has said that their direct debit will not go though until the new year if we dont close in the next two weeks.
However they said that we could make payments anytime we like after closing.

So, looking at - http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html#section3

It says -
When should I apply for TRS?
You should apply online as soon as you have commenced repayments on your loan
Click to expand...
In addition, on the online application form it asks-
Date of the first repayment on your first mortgage
Click to expand...

In both cases I believe you would have a strong case for saying that your first payment was indeed the date you transferred money into the mortgage account.
We are pushing our solicitor to try and close ASAP as we would rather not leave it to chance.
If we do close after the middle of November we will most definitely be making a payment manually into the mortgage account as early before December 31st as possible.

Does anyone have any thoughts as to why this wouldn't be acceptable in that scenario?
 
I actually rang the TRS section in the revenue today and was told by the offical, who confirmed with her superior that if the mortgage is drawn down in 2011 you will qualify for TRS at 25% even if the first payment does not go out until January 2012.

Even with this information we have still decided to wait because we cant be sure that we will get the mortgage drawn down in 2011 and who knows if the government would actually honour what was said to me today.

Anyway hopefully it will benefit some people.
 
Be aware that you can ask more than one person in Revenue a question and get more than one answer - not all of which are necessarily correct and all of which could be wrong!
 
gambelore said:
My last post was in reply to ONQ.

I relation to your comment about mortage protection life assurance Clubman, i figured going through the bank would be quickest but maybe I'm incorrect, or maybe 2 months is plenty of time to sort this part out.

In relation to the €6.2K I used a MIR calculator online.
The MIR will disappear completely after december 2017.
Based on €220,000 mortgage over 30 years at 3.85% I calculated that I would get €10,700 MIR over 6 years (ignoring 1 payment which I would have made in 2011 and would also get MIR on). If I didnt purchase for a further 12 months and the price and interest rate remained the same, I would get MIR of €900 for 5 years or €4500 in total. €10,700-€4500= €6,200.

Maybe a better comparision would be if I bought in Jan 2012. If I did I would get another full year of MIR worth €900 so the difference would be reduced to €5,300.

Please feel free to point out any flaws in my logic.
Click to expand...


One simple flaw in logic, I think. You will not get another full year MIR if you wait until January 2012. There is no MIR after 2017. Whether you start a full tax year earlier is irrelevant. You'll only really get 6 years worth now either way.

€6k? I'm in a similar position, though slightly different as only one of us is a first time buyer. Hard to swallow, I now understand because of the limit being higher for a first time buyer (10k Vs 3k), 10/13ths of the interest is currently weighted to the FTB, not 50%. I had completely underestimated this myself.
 
RiceCakes said:
We are in the process of closing too and the bank has said that their direct debit will not go though until the new year if we dont close in the next two weeks.
However they said that we could make payments anytime we like after closing.

So, looking at -
It says -
In addition, on the online application form it asks-

In both cases I believe you would have a strong case for saying that your first payment was indeed the date you transferred money into the mortgage account.
We are pushing our solicitor to try and close ASAP as we would rather not leave it to chance.
If we do close after the middle of November we will most definitely be making a payment manually into the mortgage account as early before December 31st as possible.

Does anyone have any thoughts as to why this wouldn't be acceptable in that scenario?
Click to expand...

That's the burning question and one that I don't think has been clarified yet.

We are in exactly the same position and hope to be sorted before 31st.

I will be making enquiries and post the responses.

D.
 
Is it true that 10/13s of interest is weighted to the FTB?
We are about to draw down our mortgage. I am a FTB but other half isn't.
Our interest is about 6k per year. Does that mean that I get 10/13 of the interest relief back?
 
LiveForTheWE said:
Is it true that 10/13s of interest is weighted to the FTB?
We are about to draw down our mortgage. I am a FTB but other half isn't.
Our interest is about 6k per year. Does that mean that I get 10/13 of the interest relief back?
Click to expand...


According to a bloke on the TRS helpline - that's how it is done! I had to doubleback when he said it for clarification. Evidently, not for long though, even stevens come 1 January.

So apparently if you jointly incurred 6k, 10/13ths goes to the FTB, 3/13ths to the non FTB. The non-FTB is all within limit (<3k). The FTB's share is also within the FTB limit (10k), but exceeds the non-FTB limit (>3k).

It made me sick when I ran the numbers, as it's unlikely my purchase will go through before year end.

All said though, what's to say the whole thing won't be abolished at some stage. It's no wonder Kenny & Co are putting pressure on the banks to pass on ECB rate decreases. Provides more scope for less MIR...
 
Yes - I have rung revenue twice on this issue. We are signing contracts today. One person told me it was when the loan was drawn and the other told me that it did not matter as I am not a first time buyer and that my tax entitlements will not change (bought first house in 2005 - sold in 2009). Second person told me that it was likely in the next budget for all this to change anyway.
Hard to know what is the real story.
 
We are signing contracts next week, starting to sweat a little. Getting awfully close to the wire here!
 
see this similar thread where I have posted the email response I got from the Revenue. Hopefully this will clarify the situation.
 
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