Sudden drop in TRS

MsUnderhill

Hi

Was checking my current a/c today and noticed that my TRS payment has dropped by €30.

Can anybody explain why this would happen?

I'm a first time buyer on a 1 year fixed rate mortgage. I took out the mortgage last summer which only puts me in year 2 of the mortgage. As I understand it I'm entitled to a 25% rebate for the first two years of the mortgage so as I'm on fixed rate until the summer I wasn't expecting any kind of change until then.

Toots

Do you mean summer 2008 or summer 2009?

rameire

its probably because you started your mortgage during the year.
thus your trs started after this. ( trs never ever starts when your mortgage starts )
soooooooooo.
your trs was behind on the interest you had already paid.
soooooooooo.
you received your trs over a shorter period thus the repayments were higher than they would have been if spread out over the whole year.
hence your trs has now dropped to a lower payment.

if you are not sure or want further clarification
call 1890 46 36 26

rameire

plus it is only 25% up to either the interest or ceiling, whichever is lower.
ceiling per person for first 7 years is 10,000.00.
yr 1 25% ceiling 10,000
yr 2 25% ceiling 10,000
yr 3 22.5% ceiling 10,000
yr 4 22.5% ceiling 10,000
yr 5 22.5% ceiling 10,000
yr 6 20% ceiling 10,000
yr 7 20% ceiling 10,000
yr 8 onwards 15% ceiling 3,000

trs is to cease in 2017 for all people.
so your last year of trs in 2016 will be 15% of ceiling of 3,000 or interest whichever is lower

MsUnderhill

Thanks for the reply guys.

Is there an easy way to work out what the payments should be?

Is there an online calculator anywhere that I could try?

I made my first mortgage payment 1 July 2009, got my first TRS payment on 1 Sept 2009.

Mortgage is fixed rate for 1 year at 2.3% (2.3ish, can't find documentation right now with all the decimal places!), total borrowed €138,000, repayment period 35 years.

My monthly mortgage payment is €481.98, and my TRS until February was €89.03.

It has now dropped to €59.67.

FergA.com

You can plug your mortgage details into Karl Jeacle's mortgage calculator and it will tell you how much of your repayment is interest. Then you can use rameire's posts above to work out the TRS. As far as I know, interest is estimated for the year and TRS worked out accordingly, rather than changing it from month to month which would be impractical.

MsUnderhill

Thanks FergA

I'll give that a go

jimoc

As Ramiere said, its because in the first year you got a full years relief in the space of 6 months or so, therefore the payments would have been higher.
Now that they are spread over 12 months they will be lower, but the total for the year will be the same.

And just in case anyone's TRS was not paid at all this month, the TRS department is currently processing a bunch of form that were sent to everyone who had a top-up in the past 7 years and have stopped their TRS payments until they are processed. They expect to be finished by April at which time the payments will be reinstated and backdated.