mortgage question- tax relief at source

E

emefox

Registered User
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Myself and my partner purchased a house in September 2004 with a joint mortgage that qualifies for the maximum amount of tax relief, (300,000 on a 30 yr term). We initially had a tracker mortgage for the whole loan amount and in respect of which we were getting tax relief of €133.34 per month.

Since January this year we have put 2/3 of the loan on a fixed rate and opened a new account in respect of this fixed part of the loan. At present, we appear to be getting some tax relief (approx €56) in respect of the remaining balance on the original loan account but none in respect of the new loan account despite completing a TRS form in respect of this new loan account.

We’d be grateful for any advice as to whether the initial €133.34 amount was correct as it appears very high and whether anyone else has had problems getting TRS on a second mortgage account. Presumably the overall amount of TRS you get should be the same whether the loan amount is in one account or split between two ?
 
Strictly you only qualify for owner occupier mortgage interest relief on your first mortgage. Where you have two separate mortgage accounts you may only qualify for relief on one. You would need to check this with your lender, Revenue and/or an independent, professional advisor. I suspect that you cannot claim TRS on more than one mortgage account at once even if they are technically linked. However Revenue may have some mechanism for allowing for this where the split between two accounts is basically an administrative issue.

The original relief of €133.34 (2 x €66.67) would have been correct if you were first time buyers and paying €8,000 or more in interest each year (€8,000 @ 20% / 12 months = €133.34 p.m.).
 
I have 2 mortgage accounts and get TRS on both, but these 2 accounts were opened exactly at the same time (and both for PPR).
So, Revenue does have a mechanism to allow for this when accounts get initialy registered.

I think OP's problem is that the accounts were not opened at the same time. But as Clubman said , could simply be down to admin issue.
 
bacchus said:
I have 2 mortgage accounts and get TRS on both, but these 2 accounts were opened exactly at the same time (and both for PPR).
So, Revenue does have a mechanism to allow for this when accounts get initialy registered.

I think OP's problem is that the accounts were not opened at the same time. But as Clubman said , could simply be down to admin issue.
Click to expand...

How much TRS are you getting so?
 
SteelBlue05 said:
How much TRS are you getting so?
Click to expand...

The same amount as if i had had only one mortgage account for the same amount of my 2 mortgage accounts.
 
Another TRS question:

Does TRS last for the whole length of the mortgage (be it 30 years or whatever) or only for the first 7 years?
I'm getting conflicting reports!

If it is only for the first 7 years what if you move during those 7 years?
Do you start again or pick it up where you left off?

Thanks.
 
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TRS applies for the full term of owner occupier mortgages. FTBs in the first 7 years of their first property mortgage obtain higher rates of relief (€400K @ 20% = €800 p.a. or €66.67 p.m. per mortgage holder) than FTBs from year 8 onwards or non FTBs (€2540 @ 20% = €508 p.a. or €42.33 p.m. per mortgage holder). Where a FTB moves house within the first 7 years of their first property mortgage then they become a non FTB and qualify for the lower rate of relief.
 
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