Mortgage Tax Relief at Source

ButtermilkJack

I know there's already a Mortgage TRS thread active but I didn't want to hi-jack hawker's thread with a different query.

Anyway, has the TRS gone down for 2006? Basically my mortgage is gone up €36 per month as a result of the 0.25% increase but now I'm paying €70 extra, not €36. I know I was getting €100 off my monthly payments, but the last payment there at the start of January I only got €65 off?

air

Perhaps less of your repayment this year is going against the interest and more against the capital. I think that the ratio of interest:capital is continuously decreasing over the lifetime of your mortgage.
If this is the case then maybe you're paying less interest & so getting less relief?
Only a guess.

Ardent

How long have you had your mortage for?

In 2004 I was getting 160/month relief but that was because I only bought my gaffe after June and the relief for 2004 was split over 5/6 months rather than 12. Over 12 months, 65/month sounds right.

Kinetic^

Hi buttermilk,

If you're paying interest and capital, then the amount of interest you're paying is always decreasing, so your interest relief will follow suit.

ButtermilkJack

Ah, I see, that makes sense. Thanks for all the above!

I have my mortgage since March '05 so would that mean my relief is split over 9/10 months rather than the full year, and that's why it was higher? And now, in 2006, it's the full 12 months, therefore lower?

air

That'd be it. The capital / interest thing wouldnt have such a dramatic impact

Ardent

That's it. At least that's what the Revenue told me when I rang them up in a panic over my decreased relief.

ButtermilkJack

Ha Ha Ye I was beginning to panic myself. After the interest rise I just said "A well, at least I have €100 off..." and then, what, wait a minute, what's goin' on here, excuse me...