# ptsb account statment mortgage gone up and im on a tracker



## corinthion (8 Feb 2012)

hi there guys
i have just got a letter in the door from ptsb saying that due to the change in tax relief deducted at source my payment has risen by 14 euro. can somebody please explain to me how this happens. i am on a tracker mortgage but i am not sure how this works
thanks


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## kaza (9 Feb 2012)

They are talking about your TRS amount - which is your tax relief at source. You recieve this tax relief on any interest you pay - it could be 20 - 30% relief depending on your circumstances. So basically this amount of relief has changed so hence your repayments have gone up because of that. 

What year did you buy your property? Are you a first time buyer? Is the mortgage single or joint? The reason I ask is these all have an effect on how much your TRS will be. 

Plus the amount of interest you pay would have gone down recently with ECB reductions which would mean you are paying less interest - so will receive less tax relief on that interest so this could reduce your TRS amount as well.


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## alexandra123 (9 Feb 2012)

My relief in Nov was around 160, in Dec it went down to 132 and now it is gone down to 56 eur in Feb instead of it going up. 

I have just contacted the bank as my relief should be over 160 based on the new 30% TRS. They commented that they do not have the correct figures and that I will be reimbursed when revenue have given the proper figures to the bank. This is with PTSB.


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## kaza (9 Feb 2012)

alexandra - what year did you buy your property? Because the ceiling amount you can get relief on changes after 7 years - so that is what might have happened.

I bought in 2005 - so this year my ceiliing as a couple has gone from 20K down to 6K (if single 10K down to 3K). This means now that even thought they increased my relief from 25 to 30% it is now only on up to 6K of interest.

So this year my relief has halved - last year I paid approx. €15K in interest and because I could claim 25% on up to €20K it meant I could get 25% relief on the full 15K - so €3,750 per year relief or €312.50 per month relief.

Now because I own my house 7 years my relief ceiling amount has reduced to €6,000, but the % has increased to 30% - so 30% relief on the first 6K of interest I pay - meaning the max I can claim is now is €1800 per year or €150 per month.

So although it sounded in the budget my allowance was going up from 25% to 30% - the total amount I could claim was reducing!!! My TRS has now halved.

So I assume if you bought in 2005 and are single? Then you can now claim 30% relief on up to €3,000 - so €900 per year or 75 per month.

PTSB however have not yet updated their systems to change the 25% to 30% - so at the moment everyone is only getting 25% relief - so €62.50 per person per month. They have said it will be something like April before their system is updated and you will then be reimbursted the 5% difference for the months you paid at 25% instead of 30%.

So if you are single mortgage holder and bought in 2005 €62.50 for now is the right amount - this will change to €75 once their systems are updated.

I am really annoyed at how the government plugged this in the budget as if they were doing people a favour who bought in the boom! If they were then they would have increased the ceiling limit!!


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## alexandra123 (9 Feb 2012)

Thanks for the update Kaza - yes I bought in 2005 on single relief. I was aware my limit was going down but did not realize the impact. I bought in late Dec 2005, I should have waited till Jan to get the keys 

I actually thought my mortgage would be going down instead of up, so now it is gone up by + 100 euro  that's a big hit without getting ready for the interest to go up over the next couple of years.


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## ngwrbc (9 Feb 2012)

alexandra check when you paid your first mortgage payment, if you got keys in Dec 2005 you might not have have first repayment until early 2006. 

If 1st payment was made in 2006 ring the revenue TRS section and confirm what year was your YEAR 1 of TRS, was it 2005 or 2006.  

Simular happened me keys in dec and first payment in Feb following year (I think) rang Revenue my year 1 TRS was amended from the year I got my mortgage to the year I made my first repayment.  They were really helpful.


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## corinthion (9 Feb 2012)

hi kasa. i bought the property in 2008 and the mortgage is in single name. i am not classed as a first time buyer because i released the equity off a mortgage free house. but it is my first mortgage. if you can understand.
but i still can get my head around this. sorry for sounding stupid. but i still cant see why my payments are going up


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## random2011 (9 Feb 2012)

You say PTSB have not updated their systems but I recieved a letter yesterday saying due to a change in your MIR my repayments reduced by 36 euros. Not exactly the wording but similar and a reduction in any case.

So cud PTSB have updated their or could I be due another reduction.

Have to say I am happy as my mortgage which jumped significantly has being reduced by 200 euros since nov/dec




kaza said:


> alexandra - what year did you buy your property? Because the ceiling amount you can get relief on changes after 7 years - so that is what might have happened.
> 
> I bought in 2005 - so this year my ceiliing as a couple has gone from 20K down to 6K (if single 10K down to 3K). This means now that even thought they increased my relief from 25 to 30% it is now only on up to 6K of interest.
> 
> ...


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## alexandra123 (9 Feb 2012)

Thats excellent news ngwrbc. I never made my first payment until Jan or Feb, not sure which ! 

I will check that out tomorrow.


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## alexandra123 (10 Feb 2012)

As an update to my post. I contacted TRS today and they told me that my TRS started in 2005 instead of 2006 so I am delighted with the outcome 

Thanks for the advice...really made me smile today !


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## ngwrbc (13 Feb 2012)

Hey that's great!  Delighted that it worked out for you!


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