Mortgage interest relief question

W

Westy29

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My partner and myself are taking out a mortgage as first time buyers. We are both entitled to interest relief seperately. If im paying the mortgage from my account soley is both our relief applied to my account?
 
You will be paying your mortgage from one account, therefore the relief will be applied to that same account
 
Eh? The relief is applied to the mortgage account and not the account from which the repayments are made (which may well be with a financial institution other than the lender).
 
My TRS is also paid into my current account, where the mortgage is paid from
Nicola
 
Really!? Sorry - I stand corrected so! :eek:

So the answer to the original question is that both individauals' relief will be paid to the original poster's account.

Apologies for any confusion caused...
 
I often thought it - by paying into a current a/c, the TRS is in some way boosting disp income.

Whereas by paying into the mortgage a/c, it is used to reduce debt.

So it would be more difficult for the Govt to reduce it if it is mostly paid into current a/cs.
 
Ok im new to all this, do i have to apply for this or will the building society automatically do it, i transfer the money to the mortgage account every month, so where would i see the saving being made?
 
ClubMan said:
Really!? Sorry - I stand corrected so! :eek:

So the answer to the original question is that both individauals' relief will be paid to the original poster's account.

Apologies for any confusion caused...
Click to expand...

You would be right about the TRS being deducted at source from your mortgage repayments, this happens with certain lenders.

i.e. Your gross repayments at the start of your mortgage are say €1,000 a month and this is taken from your current account, then you get TRS of €200 a month, the net repayments will be €800, and €800 is taken from your current account each month, you never see the €200 but it is deducted from your capital balance.
 
Jolly Man said:
Ok im new to all this, do i have to apply for this or will the building society automatically do it, i transfer the money to the mortgage account every month, so where would i see the saving being made?
Click to expand...

You should apply for Tax Relief at Source once, just after you got your mortgage cheque. If you can't remember, ask your lender. If you haven't applied already, you can do it now. Search for TRS on Revenue website.
 
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