TRS Query

Hi, wondering if anyone can help

Myself and my partner bought a house in OCT 08. Deal was closed in OCT. Mortgage was drawn down in Oct 2008.

Mortgage amount : 417,689

Both of us were first time buyers so both qualified for full TRS.

We took a moratorium for 6 months and our first mortgage repayment was made in May 2009. We made our payment and we also received our 1st TRS

My first Question is- Does our TRS start from Oct 08 (when the mortgage was drawn down) or in May 09 (when the first payment was made and 1st TRS received)

My second question is, What is our first year for TRS calculation? 08, or 09

I ask because I recently saw my bank statment and noticed that our TRS has dramatically reduced.

Since receiving our first TRS (May 09) we have received a monthly relief of €334 (between the 2 of us). I am assuming that this was the full 25% allowed. We have received TRS at this rate all the way through to Dec 09.

However, looking at my statement so far for Jan 2010, our TRS has been reduced to €175 between the two of us. Does this seem right? It is half what it was last month.

I know rates have moved over the last year, but at the time of our first TRS the rate was 2.5%. It is now 2.25%

From revenue websiteyou get 25% for the first 2 years and 22.5% for the 3rd year and so on.

Can anyone help explain why it is significantly lower?

thanks

Hello,
Our TRS was also reduced dramatically also. I rang our mortgage provider who told me that they get their figures from the Revenue direct, he gave me a no. to ring them, I can't see to lay my hands on it at the min..sorry. But ours was reduced because we had come off a high fixed rate (5.3%)onto a tracker (2.1%) the TRS relief is connected to the rate of interest you're on. Ring your bank first to see if your rates have changed, they should have the revenue no. to pass onto you to investigate further.

1890 46 36 26

i'm no expert, but from my own experience, and from previous threads on AAM:

Your first year for TRS was 2008

In 2009 your full years allowance of TRS would have beeen spread over the 6 motnhs repayments you made, therefore it was effectively twice as high as it would normally be.

And because you're now into year 3, the rate reduces to 22.5%


we got a letter from our provider in Novemeber telling us our mortgage repayment was reducing to eg 1000 (from 1200) and we were thrilled. We presumed it was a TRS issue because ours was delayed and then complicated because one of us is non FTB. Anyway got this letter in December clearly stating that from now on your repayment will be 1000.

The DAY BEFORE our January payment we received a similar letter telling us from now on our payment would be eg € 1350

We're on a fixed rate. But what had happened was the December letter (and lower payment) was actually a sort of "balancing payment" to balance the erratic TRS paid during the year. If the letter had stated this it wouldn't have been so much of a shock and an effort to find the extra €300+ with a few hours notice.

My mortgage was drawn down in December of last year. I was reading the various threads on here and it seems that the general consensus is that the date of draw down is the date on which TRS runs from (which of course would mean that I'd lose out on a year of TRS). However, I just rang revenue there and the guy said that the TRS 'clock' runs from the first mortgage payment. I know people have gotten various answers from revenue so who knows what to believe??

thanks for all the responses guys.

Rang revenue to clear it up

1stly- Your TRS Year does not start until you first start repaying your mortgage. they confirmed this over the phone. So despite our mortgage being drawn down in 08 our first year for TRS was 09

2ndly they informed me that as our repayments started in May we received the full year (12 months worth TRS) spread out over the remaining months of the year (May to Dec). thats why we were getting higher amount of TRS.

3rdly- the amount of TRS due is based on an estimate at the beginning of the year of the amount of interest you will pay. This estimate is provided my your bank to revenue. They then divide that interest by whatever you are entitled to (in our case 25%) and then divide that by 12 to spread it out if it changes.

To me that means that if your bank estimate is wrong (as will be the case unless youare fixed becasuse they use the rate at the time of estimate) then you could be either due more money from revenue at year end, or indeed you may owe them money. Yikes!

Anyway, its all sorted and after many spreadsheets and calculations I agree with them.

(so was just wondering if you drawdown in Oct and repay first payment in Dec, will you get the full year TRS allowance in one month)

Cheers for the help