girlfriend moving in.....TRS query???? help!!

[galwaydude]

ok so in 2006 i bought a house. was paying 1083 per month the got trs which brought it down to 905. then the adjustment earlier in the year brought it to 895 so happy days...... two year fixed rate ended so now im on 740 per month on a tracker variable with ptsb of 3.25 which im happy with. my question is this:

my gilrfriend is 32 weeks pregnant and is moving in when baby is born cause we live away bl bla bla ..but should or could i get her name on the mortgage now to make the trs lower...cause in another few weeks she'll be on maternity and dont know if she'll be able to claim it... but if i do will she lose out on other benifits. so would she/and i be better to leave it as is and just say were not together at all.

 

[niceoneted]

As I said in your other post best to tell the truth. It will probably mean a whole new application to add her to the mortgage and solicitor costs. Bank may not approve newer mortgage.

 

[Protocol]

I don't understand............TRS is a % of the interest.

The interest paid won't change if there are more occupants in the house.

So how would the TRS received change if more people live in the house?

 

[Lou34]

A first time buyer in years 1 & 2 can claim TRS at 25% up to a ceiling of €10,000. In years 3, 4 & 5 this is reduced to 22.5% of €10,000. In years 6 & 7 its 20%.

If your girlfriend goes on the mortgage then she too will be entitled to the above TRS relief. So that would be a joint total of €20,000 per annum. It doesn't matter if she is working on not - she is still entitled to this allowance. "The introduction of mortgage TRS extended mortgage interest relief to non-taxpayers. Since 2002, you do not have to be earning a taxable income to be eligible for TRS." Check out this link
http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html

Beware though! There are other implications such as stamp duty and possible gift tax and legal fees should you decide to go down this route so take some legal advice in the first instance.

 

[dubrov]

THere's probably not much point tin adding her name to the mortgage. If you are on a tracker, interest rates are very low and chance are you are already claiming TRS for the full amount of interst.

If you are a first time buyer you can claim TRS on interest up to 10,000. So as you are on a rate of 3.25% your outstanding loan would have to be over €310,000 before a second person would start to take effect. Although the bank would probably be only too happy to add your gf's name to the moertgage (extra security for them), there would be a lot of fees associated. She would also lose her first time buyers status which could be very useful if you ever decide to move on. She could avoid stamp duty, better TRS, better bank rates ettc.