Mortgage Tax Relief

I'm buying a house with a friend, getting joint mortgage, do we both have to claim for mortgage tax relief? Also as we are both first time buyers do we both lose the first time buyers status?

Your bank should sort out the mortgage interest relief for both of you.

Yes, you will both lose your first time buyer status.

Thanks Sherman

Sherman said:

Your bank should sort out the mortgage interest relief for both of you.

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Are you sure about that? I thought that the borrower(s) had to file a claim themselves - [broken link removed] or [broken link removed]?

Your bank should sort out the mortgage interest relief for both of you

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I don't think your correct in saying that. We had to claim tax relief ourselves by filling out and submitting a TRS form.

The bank then either credit your mortgage account with the tax credit or take it off your payments...depends on the bank.

As far as I remember PTSB sorted it out for me, although I could have signed the form and given it to my broker - it was just one of the many things to be signed at the time!! I never contacted the Revenue as far as I can remember.

I seem to recall our solicitor giving us the TRS form for completion many moons ago. That was back in the days of increased tax free allowances for mortgage interest relief (i.e. the lender was not involved). These days with mortgage interest relief granted at source the lender sorts the deduction out but I don't think that they necessarily sort out the initial application. After all they don't necessarily have the relevant details (e.g. FTB or non FTB etc.) and I don't think that they can make claims on behalf of individuals (i.e. the individuals must do this themselves). Perhaps some lenders get the borrowers to fill the TRS1 form in and pass it onto Revenue? I wouldn't necessarily bank on it though. Best to play it safe and file a claim (online if necessary).

You must complete sign and return to revenue a TRS1 form, you can avail of the TRS1 form online or from your local tax office .Some lenders used to forward it to you on completion of your mortgage, not sure if they still do, would'nt wait around for the bank to forward it though.

Also as we are both first time buyers do we both lose the first time buyers status?

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yes once you purchase a property and become a home owner you are no longer a first time buyer for any futher property purchase.

Molly said:

You must complete sign and return to revenue a TRS1 form, you can avail of the TRS1 form online or from your local tax office .

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You can also claim the relief [broken link removed]. However maybe they just send you out the form and you still have to sign it?

ClubMan said:

However maybe they just send you out the form and you still have to sign it?

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No - not in my case. I changed lenders recently and applied for the TRS online last month. It has already been notified to the bank (I checked!) and I am awaiting my first reduced payment later on this month. Of course it might be relevant that they knew I had TRS with my previous lender.....