TRS Gone (FTB Bought in March 2005)

[kaza]

Hi,

First time joint buyers, bought in March 2005 with PTSB. We have been receiving TRS of €150 per month (30% of €6000).

I thought with the budget changes this would continue until 2017: http://www.revenue.ie/en/tax/it/reliefs/tax-relief-source-mortgage-rates.html

However, I checked my online banking today and it shows my TRS as zero and that my mortgage payment has increased by €150.

I am obviously going to ring them to check what has happened but based on my previous experience with PTSB over the phone I do not have 100% confidence in their answers to my queries - so thought I would double check with you guys that I am right in thinking we should be receiving this relief for another three years?

Thanks!

 

[kaza]

I've been doing some research and I have a feeling it's zero because my mortgage payment was late at the end of Jan.

Basically I get paid last day of the month and my mortgage also comes out that day. The new Sepa system came into play end of Jan and caused some problems for banks, so my wages did not go into my bank account until lunch time that day (into BOI account), so my mortgage payment (from BOI to PTSB) was missed. It was called 10 days later and went through fine.

Based on this: "If you do not pay your required monthly interest charge then you will be impacted by the changes and you are unlikely to receive full TRS.". I would say that is why I am not getting my TRS this month.

I find this annoying, it was really because of the new SEPA system being rolled out that my wages did not go into BOI account on time, which was because BOI was not fully ready for SEPA - hence mortgage was missed.

According to PTSB's website:

If you miss a repayment, e.g. if in January, no repayments are made, this will results in no TRS being granted for March. However, if you catch up on repayments by the end of the year you may be due additional TRS. This will be applied to your account at the end of the year and will be processed as follows:

• The actual interest paid for that year from January to December will be calculated and if any additional TRS is to be granted, this will be lodged to the mortgage account.
• If the loan is in arrears, any underpayment of TRS will be posted to the loan as a payment transaction and will be offset against the arrears balance.
• If the loan is not in arrears, any underpayment of TRS will be applied against the loan balance.

So looks like I've to pay an extra €150 this month and I will get it back at the end of the year!

 

[stonecoldk]

That link mentions "first seven years" so if you bought in 2005, you are over 7 years so TRS has ended??

 

[stonecoldk]

Ignore my post above, im wrong, google "TRS citizen information" & check out the page.
I can't post link as im only a new user

Mortgage arrears and payment of interest

While the legislation governing mortgage interest relief provides for granting of relief based on the amount of qualifying interest paid in a tax year, many lenders used to operate the relief based on the amount of interest charged to an account, even if the borrower did not actually pay that amount of interest. This had little impact up to recently.
However, in response to the growing incidence of mortgage arrears, it has been decided that, with effect from January 2014 onwards, all lenders are obliged to grant Tax Relief at Source (TRS) based on the amount of interest actually paid by the borrower within a tax year in accordance with the legislation.
This change does not affect borrowers who make the full repayments on time, in accordance with their mortgage loan agreement.
For borrowers who do not make their repayments or who pay less than the amount of interest charged to their account, the TRS amount due will be reduced to reflect the actual amount of interest paid.
As regards interest-only arrangements, people who are only paying the interest portion of their mortgage are still entitled to TRS and will continue to get it if they meet the qualifying conditions.