Mortgage relief for 3 owners

I

icun

Registered User
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16
Hi,

Myself, along with my 2 brothers, recently purchased a property. I was wondering, how does interest relief work in this case? We pay 1/3 of the mortgage each. Do we get interest relief each or how does it work?

Also, can this interest relief be backdated?

Cheers
 
At the minute 2 of us are there at weekends and the other brother is off to Oz for a year on Monday. I suppose technically we live there because it isn't rented out or anything.
 
How do you mean we aren't owner occupiers? We own the house and we occupy it 3-4 nights of the week....

Does that effect interest relief entitlement?
 
You said weekends. That's 3 nights max. I would still wonder about this being an owner occupied PPR based on what you have posted so far. Especially the person off to Australia for a year. Obviously if you are not an owner occupier you cannot claim owner occupier benefits such as mortgage interest tax relief.
 
Sure he's still paying his mortgage for the year while he's away. It isn't being rented out while he's away. It was a fairly cheap house and given the fact that the mortgage is split 3 ways it's very affordable.

Is there a rule on the number of nights you have to be there to be classed as an occupier? My brother has free accomodation during the week when he's at work as do I.

As for time at home....usually Friday, Sat and Sun nights for me and maybe Wednesday night every other week. The brother is similar but it varies every week depending on his work.

Anyway.....back to my query - for interest relief, how does it work when you have 3 people like in our case? Cheers
 
icun said:
Sure he's still paying his mortgage for the year while he's away. It isn't being rented out while he's away.
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That's not how it works - i.e. those are not the key issues in determining owner occupant status and eligibility for owner occupier benefits such as mortgage interest tax relief.
Is there a rule on the number of nights you have to be there to be classed as an occupier? My brother has free accomodation during the week when he's at work as do I.
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There is no hard and fast rule but the property must be your "normal/regular" place of residence. Again it sounds like your brother may not be an owner occupier.
As for time at home....usually Friday, Sat and Sun nights for me and maybe Wednesday night every other week. The brother is similar but it varies every week depending on his work.
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You might need professional advice to determine your owner occupier status. I still doubt that all or maybe any of you qualify.
Anyway.....back to my query - for interest relief, how does it work when you have 3 people like in our case? Cheers
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If the mortgage is split three ways then the interest should be too and each can claim their respective owner occupier relief amount. IF they are owner occupiers obviously. See www.revenue.ie for the relevant relief limits.
 
I'll have to check on the status thing then.

I had a quick look at this: [broken link removed] , if you go down to step 8. It says a single first time buyer is entitled to 20% of a ceiling of €10,000 so thats €2000 (or €166.66 a month). If the three owners are all single first time buyers splitting a mortgage payment 3 ways, are they entitled to claim the €2000 each or is it €2000 in total as a single benefit for that mortgage?

Thanks for your help.
 
If each person is an owner occupier and qualifies for the initial 7 year period of preferential "FTB" relief then they can claim up to 20% of €10K p.a. interest relief which is worth €2K p.a. But if their one third (presumably) share of the total annual interest bill on the mortgage is less than €10K then they get relief on the actual amount paid.
 
Say our mortgage payment is €975 per month, thats €325 each. I applied for mortgage interest relief with my own details on the revenue website and it took the monthly payment down to €850. Is this my interest relief or would they know it's a joint mortgage and that would be the relief to be split between the 3 of us?

If they both went and filled in the same online application with their details would that bring the payment down again in both their cases?

Thanks
 
Just reread your post there. Methinks I get it now :)

Our interest payment is probably less than €10k so the interest divided by 3 is the amount that each person can claim relief on....so it works out the same as if just 1 person has claimed on the total interest.
 
icun said:
Say our mortgage payment is €975 per month, thats €325 each.
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Yes - but what portion of that is interest? Or what are the details of the mortgage - amount borrowed, rate and term? It's only interest that qualifies for relief.
I applied for mortgage interest relief with my own details on the revenue website and it took the monthly payment down to €850. Is this my interest relief or would they know it's a joint mortgage and that would be the relief to be split between the 3 of us?
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Does the form not require you to specify the details of all mortgage holders?
 
I'm not sure what portion of it as interest off hand. It's a €150k mortgage over 25 years.

No the form doesnt require all mortgage holders details from what I can see, it says a seperate form must be completed for each applicant
 
I dont have the documents to hand but I'd say it's around 6%.....it was taken out with PTSB in February. Thats another thing, the interest relief that I applied for only kicked in this month....can I backdate that for February, March, April, May, June and Julys payments?
 
So plug the figures into the calculator to get an idea of the capital/interest split of the repayments.

You can backdate claims for TRS if necessary. But you really need to ascertain your owner occupier status first. Based on what you have posted I don't believe that you are one in which case claiming TRS would be illegal.
 
You should get it automatically if the original TRS1 form contained the correct details about when the mortgage began etc. If not then just call or write to Revenue explaining the situation. You still really need to clarify your owner occupier status though in my opinion.
 
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