mortgage interest relief correct?

G

gemma36

Registered User
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Hi,

I wonder if anyone can help?
5 years ago we took out a mortgage for 200k as a FTB and received mortgage relief at source. In the past 18 months we have increased the mortgage more, first by 20k and then by 50k to finance a site purchase.
On each occasion the bank sent me a form to apply for mortgage relief but I didn't because
a) I didn't know whether they would reclassify me as not a FTB and reduce my rate and
b) On the form it asks what percentage of the increased loan was spent on the existing house (none in my case) so I didn't think I would qualify.

Is this correct and does anyone know if I was receiving the maximum relief anyway on that mortgage amount? The mortgage currently stands at 250k.

Thanks for the help,
Gemma
 
Afaik
You won't get any increase in the TRS as a result of the increase in the mortgage.
The TRS was increased for FTB and those within the first 7 years to 16K @ 20% in last dec's budget up from 8K the previous year

You were probably receiving the max last year so this year it may be slightly higher as interest rates have increased despite the principal 200K (5 years ago, now approx 180K) going down, depends on the interest rates. You are borderline, 7K to 9K interest payable depending on amount outstanding and interest rates.

The bank are probably applying TRS on the original 200K mortgage which is correct.
 
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