# Mortgage interest relief/ TRS  increased for FTBs from 2004 to 2008



## Brendan Burgess (6 Dec 2011)

*Mortgage Interest Relief*

 The Government is committed to helping address the particular  problems faced by those that bought homes at the height of the property  boom between *2004 and 2008.  Therefore, I am going to fulfil the  commitment in the Programme for Government to increase the rate of  mortgage interest relief to 30 per cent for first time buyers who took  out their first mortgage in that period. 
*

  I am also confirming the decision made by my predecessor that  mortgage interest relief will no longer be available to house purchasers  who purchase after the end of 2012 and will be fully abolished from  2018. 



  For those who wish to buy a home in 2012, I am providing today that:


First time buyers will get mortgage interest relief at a rate of  25 per cent rather than the 15 per cent proposed by the previous  Government; and
Non-first time buyers will benefit from relief at 15 per cent  instead of the reduced rate of 10 per cent proposed by the last  Government.


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## AnnQuinn (6 Dec 2011)

How can I calculate what this will mean to my monthly mortgage repayments?


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## Declan_M (6 Dec 2011)

i bought house as an FTB in 2004, relief was reduced to 36pm at start of year, what does this mean for me? any examples i heard on radio where for someone who bought in 2007 and is still getting full relief,,


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## rameire (6 Dec 2011)

The Below details are from the old budgets which were in play and will be until 31/12/2011.
Year 1 & 2 at 25% Ceiling 10,000
Year 2 & 3 & 4 at 22.5% Ceiling 10,000
year 6 & 7 at 20% Ceiling 10,000
all years thereafter at 15% Ceiling 3,000 Ending 31/12/2017
If you topped up or purchased in the last 6 years and were receiving TRS at the rate of 15%, you will continue to receive TRS at the rate of 15%.


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## rameire (6 Dec 2011)

so, all first time buyers since 2004 will see an increase
my rate will be going from 20% to 30% woo hoo.


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## djh (6 Dec 2011)

Am I right in thinking that that for a single person the new 30% with a ceiling of 10,000 euro translates to a max relief of 3000 per year?

(figures double for a married couple?)


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## rameire (6 Dec 2011)

yes


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## djh (7 Dec 2011)

djh said:


> Am I right in thinking that that for a single person the new 30% with a ceiling of 10,000 euro translates to a max relief of 3000 per year?
> 
> (figures double for a married couple?)


 


Does anyone know if the new 30% relief will have a 10,000 ceiling for each year up until 2017?


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## NorfBank (7 Dec 2011)

djh said:


> Does anyone know if the new 30% relief will have a 10,000 ceiling for each year up until 2017?



Yes.


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## deeheg (7 Dec 2011)

Declan, I did also but the reason i get full relief I think is that I was interest only, therefore capital not going down? maybe that reason?


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## djh (7 Dec 2011)

NorfBank said:


> Yes.


 This is great news. 

Have you come accross anything from Revenue/Finance confirming it?
Only thing I was able to find was not clear and seemed to say that the ceiling would drop after a person's 7th year and run at a reduced ceiling until 2017. 

Thanks.


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## NorfBank (7 Dec 2011)

http://www.askaboutmoney.com/showpost.php?p=1226664&postcount=2


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## djh (7 Dec 2011)

Hmmm, taking a look at that link, but it says 
"After years 7, the rates and thresholds for relief are as for non-first time buyers."
Which would indicate that the ceiling ill drop to 3000 from 10000 in year7 and beyond.


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## rameire (7 Dec 2011)

this revenue.ie page
this page on the revenue is good.
some one else found it, but it explains all


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## DerKaiser (7 Dec 2011)

Hi djh, this is the definitive link, some posts above send you on a wild goose chase 
http://www.finance.gov.ie/documents/publications/guidelines/MIRinfonote.pdf
Here was my analysis - I think it's right


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## djh (7 Dec 2011)

Cool, thanks DerKaiser. 
That clears it up. 
30% of a 10k up to your 7th year. Then 30% of 3k until 2017. 
Double for married/civil partners.


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## munchy (21 Mar 2012)

I posted elswhere asking about the logistics of this - how do we avail of this - do we approach our mortgage lender or do we contact revenue?
The EBS adjusted my repayments when it learned that I was no longer living in the apartment and renting it out, but wonder if I should write to them to reinstate my status as a primary ftb? I bought in 2005


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## rameire (21 Mar 2012)

if you are not residing in your property you are not eligible for the trs.


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## Emma1980 (4 Apr 2012)

Has anyone got this yet??


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## peteb (4 Apr 2012)

No.  With Ulster Bank and can't see it happeneing for at least another 2 months.


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## Leaky1 (11 Apr 2012)

Emma1980 said:


> Has anyone got this yet??


 
I got my letter from EBS recently increasing my TRS, takes effect from April onwards (for me).


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## djh (11 Apr 2012)

I called Ulster Bank yesterday, and was told that the delay was on the side of Revenue, who they said, had to update their systems before notice of the increase would be passed to Ulster Bank and then the customer.


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## Leaky1 (11 Apr 2012)

djh said:


> I called Ulster Bank yesterday, and was told that the delay was on the side of Revenue, who they said, had to update their systems before notice of the increase would be passed to Ulster Bank and then the customer.


 
Revenue were waiting to update their computers to allow 30% when I rang them in February, but since I got my letter from EBS early last week it would appear that Revenue have that sorted - any delay from now wouldt seem to be down to the individual banks.


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## newirishman (11 Apr 2012)

*KBC increases with May*

Spoke with KBC last week, the 30% rate will take effect with May, so far they only increased to 25%. 
"Of course" everything will be backdated accordingly. Apparently took them so long to sort out the IT.


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## Molli (9 May 2012)

Rang AIB about this and was told they've got no notification about when this will happen. Suggested I might ring revenue. Does anybody have the Revenue phone no that deals with this please?


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## rameire (9 May 2012)

1890 46 36 26


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## Molli (9 May 2012)

Thanks a mil Rameire for that. Just rang them and was told AIB will be starting from June.


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## AccutaneT (18 Jun 2012)

*~~~~~~~~~*

I'm surprized, thanks!


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## STEINER (18 Jun 2012)

I checked PTSB online/ OPEN24 today and my July 2nd payment for June mortgage repayment is about €65 less than last month, new TRS of €244.  better late than never.


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## alexandra123 (18 Jun 2012)

Steiner - is that the actually because of the recent interest reduction ? I checked mine and I still have not received the 30% although my payments have been reduced by 20 euro.


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## dewdrop (27 Nov 2012)

On this subject was talking to a friend who was a FTB in 2006 who saidher MIR amounted to 279 euro per month. Wondering how this figure came about as i gather the relief is 30% on 10,000 which is 250 per month. Also am i right in saying that from January next this relief will be reduced to approx 83 euro per month (30% on 3000) meaning a reduction of 196 euro monthly.


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## rameire (27 Nov 2012)

There may be a second person on the account. Or
At the start of the year they were only getting 20% thus the trs payments later in the year were upped to cover the shortfall at the start of the year.

You are correct the ceiling will drop in year 8 to 3000 per person. So a max of 75 euro per month per person on the 30% band.


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