Mortgage payment has gone up following increased TRS in Budget, why?

[LadyJane]

Ulster Bank's notices of TRS that went out at the beginning of Jan did NOT take into account the budget increases in TRS for first time buyers.

We are in to year 2 of a 35 year mortgage. Ulster Bank sent us notification of our TRS at the beginnig of Jan. Our repayments had gone UP by 4 euro a month. When I rang the Ulster Bank Mortgage Advice Centre, the guy said that this did not take in to account the bugetary changes and that this would be changed over the next few months and adjusted back to January. So the notices are standard ones they send out at the beginning of the year and had nothing to do with the budget changes.

Perhaps other lending institutions are also slow to take up or apply the budget changes to TRS. I think sometimes it saves a lot of time and speculation to just ring up your lender and find out what the story is... although I do think it is a bit silly that they couldn't just get the correct rate at the beginning of the year.

 

[rameire]

although I do think it is a bit silly that they couldn't just get the correct rate at the beginning of the year.

trust me, its not that simple,
software has to be rewritten, then tested, then run in a test environment usually over a period of 12 cycles, (12 months) this has to be then evaluated, checked , double checked and then implemented, this takes about 2 to 3 maybe 4 months,
it used to be just 20% of the ceiling or interest paid whichever was lower, now its a few different rates.
but any trs due will be refunded, so if you are due more trs, at least it will mean lower repayments towards the end of the year.

 

[LadyJane]

trust me, its not that simple,
software has to be rewritten, then tested, then run in a test environment usually over a period of 12 cycles, (12 months) this has to be then evaluated, checked , double checked and then implemented, this takes about 2 to 3 maybe 4 months,
it used to be just 20% of the ceiling or interest paid whichever was lower, now its a few different rates.
but any trs due will be refunded, so if you are due more trs, at least it will mean lower repayments towards the end of the year.

That's cool, I can spare the 4 euros a month, just. Just idle speculation, but I wonder if the rate change benefited the banks, ie put money in their coffers, if the change wouldn't have been applied from 12.01am January 1st, 2009! Something tells me they would have found a way...

 

[007007]

im in the same position, i got a letter from First Active to say my trs has decreased and my mortgage has increased by about EUR20 per month.

this is about my 3rd letter since i took out the mortgage Dec 07. Mortgage of EUR200,000 is fixed for 5years, think the rate is 5.4%. I spoke to the bank and they said to contact the Revenue...

 

[WHAT'SFREE?]

I am a FTB since December 2005 and following the budget announcements, I expected my mortgage interest relief to increase from this month onwards.

However, I noticed that the amount of relief I received in January had actually decreased from €170 odd to €140.

I rang my mortgage provider (AIB) and they couldn’t explain why this had happened. The figures didn’t add up to any of the percentage changes announced in the budget and suggested perhaps Revenue mistakenly had me down as a non-FTB and told me to contact them.

This I duly did and I was told by Revenue, although this is the first time I’ve ever actually noticed, that each year since I’ve been receiving TRS the amount I’ve received in January has been significantly lower (only €30 in one year!). The chap in Revenue suggested it may be that the bank estimates the amount of interest on the mortgage that will be payable during the year and then balances the figures in January.

Maybe this info might be of some help to others…