Why has my TRS dropped?

M

mayo exile

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My first mortgage payment was last month (December 2008) for €794. I received €170 TRS on this payment. Just after paying my second instalment of €794. But the TRS for this month (January 2009) was only €127. Why has it dropped?

I know that I got only one month (last month of the year) for year 1 for TRS purposes and that I am now on year 2 of TRS. But don’t you get the 25% rate for years 1 and 2. So surely the TRS amount should be the same?

Mortgage is a tracker mortgage with BoI. (ECB + 1.4%).
 
Seems odd that your payments are the same if you are on a tracker. The amount you paid should have decreased in line with rate cuts by the ECB. Have you agreed to keep the payments at that level? Are you sure you're not in a fixed rate?
 
Strange your payments haven't changed......but in principle.....
The interest you are paying will have dropped as BOI changed it rates in line with the ECB reductions. If you are paying less interest, you will receive less relief.

In addition, but not as relevant I believe the TRS calculation is often an estimate that is rounded up or down in the first month of the year.
 
And also, how did you manage to get a tracker for December 08? I thought they had withdrawn trackers pre December?
 
Originally posted by PaddyW: And also, how did you manage to get a tracker for December 08? I thought they had withdrawn trackers pre December?
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Got approved back in Summer 2008 for a tracker just before they were withdrawn by BoI. Only drew it down late last year.

% rate on the first two payments was 3.9%. BoI changes rate five working days after ECB changes. I pay my mortgage midmonth so I missed the ECB cut for my second payment. Should now be 3.4% for next payment (Feb). Since I have made 2 payments of €794 shouldn't I have got TRS of $170 for each?
 
Impossible to calculate with out know the size of you loan and lenght of the loan which will give you the amount of interest per year from which you can calculate your estimated TRS
 
mayo exile said:
My first mortgage payment was last month (December 2008) for €794. I received €170 TRS on this payment. Just after paying my second instalment of €794. But the TRS for this month (January 2009) was only €127. Why has it dropped?

I know that I got only one month (last month of the year) for year 1 for TRS purposes and that I am now on year 2 of TRS. But don’t you get the 25% rate for years 1 and 2. So surely the TRS amount should be the same?

Mortgage is a tracker mortgage with BoI. (ECB + 1.4%).
Click to expand...

Are you a second time buyer? If you are i see it like this

TRS = 170 = projected interest for the year 170 * 12 * 5 = 10200
New budget trs for second time buyer = 15%
So new TRS figure = 10200*15%/12 = 127.5

Year 1 and 2 only applies to first time buyers.
Ring your bank and ask them to be sure.

The reason the payment hasnt changed could be the bank taking a few weeks to apply the new rate and the new payment change to occur. You'll probably see a change next bill. You TRS will probably chnage again
 
Last edited:
Originally posted by Mr DT: Impossible to calculate with out know the size of you loan and lenght of the loan which will give you the amount of interest per year from which you can calculate your estimated TRS
Click to expand...

€162,000 over 28 years.

Originally posted by karlod: Are you a second time buyer?
Click to expand...

First time buyer.
 
My back-of-envelope calculations based on the figures you've given suggest the TRS given is correct.
Qualifying interest is roughly -
€162000 @ ECB+1.4% / 12
= 162000 * 0.039 / 12
= 526.5

25% of €526.50 is €131.62

Calculations will be a little off due to the tiny amount already paid off and the precise way interest is calculated by your bank.

I think the real question is why you got so much in December, and I suspect that's because you had more than 4 weeks' interest in that first payment.
 
Thanks Dreamerb. I must have been spoilt by that December TRS payment! I can't remember exactly when I drew down the mortgage, but I think it was sometime in early to mid November 2008. My payment date is the 17th of each month.
 
I was in the same situation. I just spoke to TRS and they clarified the issue.

You get your full entitlement for a year regardless of when you start your mortgage. So your payment in December was for all of 2008.

BOI have not applied the new 25% TRS yet so if your with them you will be due a little extra. Any underpayments will be refunded in february.
 
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