Mortgage Relief HELP!

[daffey]

Please help me with my mortgage relief. I am finding it impossible to get it sorted. My bank keep referring me to Revenue, Revenue keep refferring me to my bank.

What am I entitled to?

My wife and I have a mortgage for €300,000 over 25 years fixed at 4.2% for five years. We only got married last March 2007 and the mortgage began in 2005 therefore up to then we were single in tax terms. Neither of us are first time buyers

At present our statements shows a lodgement of approx €184 per month which refrence my wifes name.

Would this be my wifes allowance or both or our allowance?
Does this look correct?
What should it be?

 

[joejoe]

Re: Mortgage Relief HELP!!

sounds like one, my wife and I where getting over 300Euro per month from memory I think it was 333.33Euro

Joejoe

 

[ClubMan]

Re: Mortgage Relief HELP!!

Neither of us are first time buyers

Are you sure that neither of you qualify for any remaining period of 7 year preferential "FTB" relief? When did you each buy your first property, and was it a PPR? Remember that once you qualify for FTB rates of relief you can claim the full 7 years worth even if you switch mortgages, lenders or PPRs.

But assuming that you don't qualify for the preferential "FTB" relief then your are entitled to [broken link removed] on a maximum of €6K of mortgage interest.

My wife and I have a mortgage for €300,000 over 25 years fixed at 4.2% for five years.

According to Karl Jeacle's mortgage calculator this is an outline of the capital and interest bills for the term of the mortgage (assuming it started in January 2005):

Year      Interest          Principle         Balance
2005      €12,467.53        €6,934.43         €293,065.57
2006      €12,170.59        €7,231.37         €285,834.20
2007      €11,860.97        €7,540.99         €278,293.21
2008      €11,538.09        €7,863.87         €270,429.34
2009      €11,201.37        €8,200.59         €262,228.75
2010      €10,850.23        €8,551.73         €253,677.02
2011      €10,484.07        €8,917.89         €244,759.13
2012      €10,102.23        €9,299.73         €235,459.40
2013      €9,704.02         €9,697.94         €225,761.46
2014      €9,288.78         €10,113.18        €215,648.28
2015      €8,855.76         €10,546.20        €205,102.08
2016      €8,404.17         €10,997.79        €194,104.29
2017      €7,933.27         €11,468.69        €182,635.60
2018      €7,442.20         €11,959.76        €170,675.84
2019      €6,930.13         €12,471.83        €158,204.01
2020      €6,396.08         €13,005.88        €145,198.13
2021      €5,839.21         €13,562.75        €131,635.38
2022      €5,258.48         €14,143.48        €117,491.90
2023      €4,652.88         €14,749.08        €102,742.82
2024      €4,021.36         €15,380.60        €87,362.22
2025      €3,362.80         €16,039.16        €71,323.06
2026      €2,676.04         €16,725.92        €54,597.14
2027      €1,959.87         €17,442.09        €37,155.05
2028      €1,213.04         €18,188.92        €18,966.13
2029      €434.19           €18,966.13        €0.00

Since you are paying more than €6K interest in 2008 (and for a while longer!) you are entitled to the maximum relief for your circumstances which is

€6K @ 20% = €1.2K p.a. or €100 p.m.

We only got married last March 2007 and the mortgage began in 2005 therefore up to then we were single in tax terms.

This is not really relevant to your mortgage interest relief.

At present our statements shows a lodgement of approx €184 per month which refrence my wifes name.

This figure doesn't make sense to me given the details that you have posted.

 

[ClubMan]

Re: Mortgage Relief HELP!!

sounds like one, my wife and I where getting over 300Euro per month from memory I think it was 333.33Euro

Joejoe

€333.33 p.m. would be the maximum relief for joint buyers who still qualify for the preferential initial 7 years "FTB" relief:

€20K @ 20% = €4K p.a. or €333.33 p.m.

This is not the same situation as the original poster's according to the details posted so far.

 

[daffey]

Re: Mortgage Relief HELP!!

No unfortunately, I don't think we qualify a first time buyers.

My wife's first house was second hand. Her second house, which she purchased with me was my first house.

As far as I understand my wife's house being second hand disqualifies her. And her perviously owing a house disqualifies me.

Can you confirm this is the case ???

Is the firure of €184 too litt or too much???

Thanks for help so far, some interesting reading!!!

 

[ClubMan]

If neither of you qualify for "FTB" relief then the maximum relief to which you are jointly entitled is €6K @ 20% = €1,200 p.a. or €100 p.m. in which case €184 would be too much.