TRS - Stage Payments

[MikeySligo]

Hi,

My wife and I are FTBs, and have a mortgage of €280,00 over 40yrs with Ulster Bank. At this moment in time, as it is a self-build, we have drawn down €189,000 of this €280,000. We received a letter from the Ulster Bank today advising our monthly TRS credit is €148.47.

What I am wondering is does this TRS amount sound right?
Will our TRS increase the more we draw down?
If so, will it increase automatically (i.e. without us doing anything), and what will our total credit be once we have drawn down the full €280,000?

Also, since beginning to draw down our mortgage in August 07 and applying for TRS on the same date, we have got married. Do I need to advise the revenue? When I applied for our TRS I applied under each of our PPS numbers.

Finally, does anyone know the deal with looking for additional funds with the Ulster Bank, as it is already looking likely there will be a cost over-run.

Any help would be really appreciated.

 

[Fauve]

Hi MikeySligo
Good Luck with the self build.
Re TRS, to work out for yourself;
Total borrowed (what you have currently owe to bank not what total agreed mtg is) x %interest (what your interest rate is) x 20% divide total by 12, that should give you monthly trs. I think the 20% is for married couples, not sure for single persons?
You can do this when amt borrowed changes with each draw down.
Though I think Revenue only calculates this in Jan every year, so it will not change when you make the next draw down if it is within the year,iykwim?
Revenue calculate this automatically every year, you do not have to reapply etc.
yes, let them know you are married.

Re further funds required, this happened to us, with ptsb, it is a pain in the bum though we got further funds. However took lots of paperwork from Engineer, quotes, etc they want to know why you overran and what it will cost to complete. I was told as far as they are concerned it looks bad that funds are out before build complete, how can they trust you'll do it with x amount of extra money.
When we applied for our mtg initially EVERYONE in the business and outside of it told us to ask for way more than you need, even if you never draw it down, it is easier in the long run than asking for more money.
However, we got the money, house finished but it was a headache that we could have done without.
Maybe things have changed now, hope someone else can offer better advice.
Fauve

 

[MikeySligo]

Though I think Revenue only calculates this in Jan every year, so it will not change when you make the next draw down if it is within the year

Thats a bit harsh.
Oh well.
Thanks for the heads up.

As for the cost over-run, there was quite a long time between initial approval and where we are now, so increasing prices was a factor. We told our mortgage broker we wanted more money, but she told us we could always apply for more and to only take what we think we'll need. Silly girl. Silly us!

 

[kev99]

You're TRS sounds right enough, The bank calculates it and automatically reduces your monthly repayment by it. TRS will increase up to the limits below (limits given are for 2007 tax year). As long as you applied for TRS for both mortgage holders you will get max limit but you should notifiy Revenue that you have got married for other tax issues.

TRS is simple enough to work-out:

Assuming your a first time buyer:
Multiply you annual mortgage interest (max of €8,000 if you're single or €16,000 if you married) by 20%. That should be your TRS.

I wouldn't recommend Ulster Bank to anyone, we had them for our self-build and they completely mucked up every stage payment so much so that we aren't drawing down anymore and are in the process of moving bank. Extremely incompetent