Budget 2012 Mortgage Interest Relief Q + A

km79

pjuegos wrote: »

km79 wrote: »

I double checked interest paid and interest relief received last night.
Bought in 2005 traded up in 2006
I have been receiving FTB interest relief.

thanks km79, that is a clear confirmation .
that will mean that someone that bought in 2007 and moving in 2012 will still be considered FTB. That is good news, since otherwise would not encourage people to move houses, even if they wanted to trade down to ease the mortgage repayments

Yes . Looks like my FTB status is ending but I'll get the benefit of the extended term at 30% but at lower ceiling

guideanna

I'm in similar position i bought in 2005, bought a second property in 2009 but kept the first property. I transferred my trs over to my second mortgage(this was what i was advised i had to do), still have the first mortgage and still paying that off so am i eligible for the 30%?

km79

guideanna wrote: »

I'm in similar position i bought in 2005, bought a second property in 2009 but kept the first property. I transferred my trs over to my second mortgage(this was what i was advised i had to do), still have the first mortgage and still paying that off so am i eligible for the 30%?

I'd say yes but like me 30% but at lower ceiling

pjuegos

Does anybody have an idea of what the situation would be for a (2004-2008 ) FTB that moves houses in 2012?
For example a house owner that agrees with the bank a trade-down Negative equity mortgage to ease mortgage repayments...

In this case, the 1st purchase was within the (2004-2008) year range. Even though the second purchase was post 2011, does that maintain the MIR entitlements for future purchases before 2017?

Thanks

Gareth2011

Pablo Sanchez wrote: »

For the life of me i cannot figure out how a particular measure in the budget will work for certain individuals and any insight would go a long way!

The minister announced that mortgage interest relief for people who bought between 2004 to 2008 will be increased to 30%.

I began my mortgage in December 2005 so tecnically my 7 years of relief finished this month (the one payment in 2005 counts as a year of tax relief).

Unless he is extending the term one can receive tax relief i cannot see how this would affect me and much less people who bought in 2004 who are well outside the 7 years now.

Its probably something simple that im overlooking but i just cant figure it out!

As Andrea said anyone who bought during that time will get their Mortgage Interest Reflief untill 2017. It was in last years budget. Previous to that it was the 7 years so if you boguth in 2005 you would finish up in 2012 bought in 2006 finish u in 2013 etc. But yes you have up till 2017 and it will be raised to 30% next year from your current 15% I think it is.

Gareth2011

pjuegos wrote: »

Does anybody have an idea of what the situation would be for a (2004-2008 ) FTB that moves houses in 2012?
For example a house owner that agrees with the bank a trade-down Negative equity mortgage to ease mortgage repayments...

In this case, the 1st purchase was within the (2004-2008) year range. Even though the second purchase was post 2011, does that maintain the MIR entitlements for future purchases before 2017?

Thanks

You bought in 2004-2008 as a FTB but now your moving house again next year? http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_interest_relief.html

Westwood

Got a letter from EBS this morning saying my trs has halfed. I believe I bought in 2004 FTB and have lived here since. Is this the 7th year sliding scale kicking in now? when will the new trs be introduced?

Gareth2011

Westwood wrote: »

Got a letter from EBS this morning saying my trs has halfed. I believe I bought in 2004 FTB and have lived here since. Is this the 7th year sliding scale kicking in now? when will the new trs be introduced?

You bought about this time in 2004 was it? then yes this is your 7th year coming into play. your rate is now 20% I think.

1/For a mortgage taken out between 1 January 2004 and 31 December 2012, your entitlement to relief will continue until the end of 2017

2/If you are a first-time buyer who started paying the mortgage between 1 January 2004 and 31 December 2008, Budget 2012 provides for a special rate of mortgage interest relief of 30% for the tax years 2012 to 2017.

Westwood

Gareth2011 wrote: »

You bought about this time in 2004 was it? then yes this is your 7th year coming into play. your rate is now 20% I think.

1/For a mortgage taken out between 1 January 2004 and 31 December 2012, your entitlement to relief will continue until the end of 2017

2/If you are a first-time buyer who started paying the mortgage between 1 January 2004 and 31 December 2008, Budget 2012 provides for a special rate of mortgage interest relief of 30% for the tax years 2012 to 2017.

thanks for reply. yes ftb mortgage taken out in 2004. so my trs is still half what it was even with the budget? or has these new rates yet to kick in.

Gareth2011

Try to think of it as there was no mention of TRS in the budget. Your TRS will follow its normal path untill the new 30% comes into effect. The new rate stilll has to kick in. Im guessing it will start in Jan 2012 but they haven't given a specific date yet for it to kick in which I think is stupid cause they specified a date to mess up the social

Westwood

Many thanks. ah right, so its still to kick in. we'll probably have to to pay extra in January until its sorted out, my next payment falls on the 7th of jan 2012, cant see this being sorted by then......

theaceofspies

Westwood wrote: »

Many thanks. ah right, so its still to kick in. we'll probably have to to pay extra in January until its sorted out, my next payment falls on the 7th of jan 2012, cant see this being sorted by then......

Anybody out there know when the new 30% rate takes effect?
It should make a significant difference over the course of a year in repayments.

Gareth2011

No idea they havent given dates yet but i'm guessing (hoping) at start of year.

outeverynite

I did a check myself as I got letter from EBS and they reduced my mortgage interest relief to 15% as I've hit end of my 7th year (mortgage taken out in 2005). Was wondering what the story was and I checked Revenue on it and got the following info:-

Section 3. What changes have arisen from the Budget Announcement on 6th December 2011 [Budget 2012]

From 1st January 2012 the rate of mortgage interest relief for first time buyers who took out their first mortgage between the years 2004 to 2008 and are residing in the property increases to 30% until 2017. If you took out a loan outside of these dates the existing rules remain unchanged. (see rates/ceilings chart)
Back to Top
Section 4. If I took out my first mortgage between the years 2004 to 2008 what do I need to do?

There is no need for you to do anything. Revenue and the lending institutions will make the necessary changes. For administrative reasons this will take a period of time to complete but you will not lose out and you will get the full mortgage relief due to you in 2012.
Back to Top


So it'll probably take a little while, maybe a month or two, for it to go up to 30% interest relief but we'll still get it backdated to start of 2012.

Gareth2011

outeverynite wrote: »

I did a check myself as I got letter from EBS and they reduced my mortgage interest relief to 15% as I've hit end of my 7th year (mortgage taken out in 2005). Was wondering what the story was and I checked Revenue on it and got the following info:-

Section 3. What changes have arisen from the Budget Announcement on 6th December 2011 [Budget 2012]

From 1st January 2012 the rate of mortgage interest relief for first time buyers who took out their first mortgage between the years 2004 to 2008 and are residing in the property increases to 30% until 2017. If you took out a loan outside of these dates the existing rules remain unchanged. (see rates/ceilings chart)
Back to Top
Section 4. If I took out my first mortgage between the years 2004 to 2008 what do I need to do?

There is no need for you to do anything. Revenue and the lending institutions will make the necessary changes. For administrative reasons this will take a period of time to complete but you will not lose out and you will get the full mortgage relief due to you in 2012.
Back to Top


So it'll probably take a little while, maybe a month or two, for it to go up to 30% interest relief but we'll still get it backdated to start of 2012.

That thing abou the TRS untill 2017 was out in 2010 budget. The 30% for people who bought 04-08 only came out this year. They brought out the trs to end in 2017 because people overpaid for their propertys during that time pretty much because of the boom and it was give a helping hand so mortgage payments wouldn't shoot up. So the 30% is a welcome thing. For me its an extra 7.5% cause im only 22.5% but your on 15% so its worth 15% to you

ccazza

My question is a little different. We took out our original mortgage in 2004 and 2005 while we were building our house. In 2009 we switched our mortgage to a different provider but we are still living in the original house for which we took out the mortgage. Because we switched our mortgage in 2009 are we going to lose out on this relief for buyers during the period 2004-2008? Any help on this would be much appreciated.

Gareth2011

You took out your mortgage in 2004 and 2005? You have 1 or 2 mortgages? I would say you will be ok once you didn't buy a 2nd property I would imagine you would still be classed as a first time buyer as many people switched their mortgages between providers for better deals etc. But in saying that im not 100% on it. If you email citizensinformation or even revenue they will be able tell you for sure.

ccazza

Only 1 mortgage. We built our house so got the money in stage payments over those 2 years but then switched lender in 2009. Hope we still qualify as every bit helps. Will be very disappointed if we don't as we built at the height of the boom and everything was so expensive then. Would build the house now for probably half what it cost us then!

ccazza

I rang revenue today to see about the above. It was lucky I did! I am entitled to the 30% as we took out our original mortgage within the years 2004-2008 but they had our mortgage starting in March 2009 on their system as that's when we switched lenders. He was manually able to change the date so we're going to get 25% at first straight away and then when it's sorted out in the system we'll get the 30%. Glad I rang now!

km79

I've given up trying to work it out
Got a letter this morning saying from next year we will receive 125.00 a month.
I believe we are moving into year 8 so expected to get either :
15% of 6000 (old rate) for a month or 2 till it wad sorted which would equate to 75 a month
OR
30% of 6000 which would equate to 150 a month.
I can't figure out the figure of 125 especially when it is an exact figure of 125.00
Would the fact my wife took unpaid leave for a few months last year affect it ?

Richard tea

Confusing is not the word. I bought in 2007. My TRS was down 28 euro this month. My lender ( ICS ) applies the .15% cut in rates by the 23rd of this month. Something doesnt add up Do I contact my lender or Government department about this. I assume I should be on the 30% trs rate till 2017?

rameire

contact the revenue guys
have your pps number and ring 1890463626
try a few times as there is a msg saying please call back, but if you hang on you will get through to a person.

i spoke to a revenue member and they advised that the banks are updating their systems so that they can use a 30% trs rate
so for the time being people who are entitled to the 30% will be getting 25%
then when the banks are all sorted, everybody will be changed to the 30% and any shortfall will be paid, i assume over the remainder of the year.

the last time the revenue changed the trs system dramatically to the 25, 22.5, 20 and 15 percents they had a greater lead in time, this time around the banks have only had a month.

km79

rameire wrote: »

contact the revenue guys
have your pps number and ring 1890463626
try a few times as there is a msg saying please call back, but if you hang on you will get through to a person.

i spoke to a revenue member and they advised that the banks are updating their systems so that they can use a 30% trs rate
so for the time being people who are entitled to the 30% will be getting 25%
then when the banks are all sorted, everybody will be changed to the 30% and any shortfall will be paid, i assume over the remainder of the year.

the last time the revenue changed the trs system dramatically to the 25, 22.5, 20 and 15 percents they had a greater lead in time, this time around the banks have only had a month.

That would give me exactly 125 alright
.
On another point why can't revenue or the bank state on a letter what %trs you are getting ?
I always have to work it out myself or ring them. It's usually quicker to work it out myself

dandelion4

a bit confused on this issue - received letter in Jan 2012 re TRS and was given our total repayment amount, then today received another letter, again re change in our TRS resulting in an increase of almost €300 in our monthly repayment (large mortgage with PTSB @ 5.19% SVR) - we bought 1st house in July 2005, sold and traded up to our current house in July 2008 - called revenue and was told we on lower ceiling now, and max amount of TRS we can get in a year is €1800 - so a max of €150 relief each month... half the amount we are used to getting - is this right?

Gareth2011

dandelion4 wrote: »

a bit confused on this issue - received letter in Jan 2012 re TRS and was given our total repayment amount, then today received another letter, again re change in our TRS resulting in an increase of almost €300 in our monthly repayment (large mortgage with PTSB @ 5.19% SVR) - we bought 1st house in July 2005, sold and traded up to our current house in July 2008 - called revenue and was told we on lower ceiling now, and max amount of TRS we can get in a year is €1800 - so a max of €150 relief each month... half the amount we are used to getting - is this right?

Id call PTSB about this. We spoke to 4 different people there the last time we called and they all had different stories about our issue. We finally got it clarified on the 4th person but are still awaiting paperwork to clarify what she said :mad:. I also asked one of them about our TRS and the 30%. She said I would have to call revenue (even tho its revenue who contact them and they pass it on to customer). I don't see anything in this timetable about TRS of 1800 for the year. Maybe they got it wrong? Have a look yourself. http://www.revenue.ie/en/tax/it/reliefs/tax-relief-source-mortgage-rates.html

rameire

if you want clarity ring the revenue again
they provide the rate, so ask the rate that you are on
they provide the ceiling, so ask for the ceiling that you are on
the bank provide the date of drawdown of mortgage which gives the above info and the bank give a montly figure of how much interest will be paid in the year.
the revenue info then feeds into the mortgage systems giving you your trs payment per month.
if you ring the bank they will just give you what they can see, and sometimes what is seen is not what it actually is due to different interpretations.
1890 46 36 26

Gareth2011

rameire wrote: »

if you want clarity ring the revenue again
they provide the rate, so ask the rate that you are on
they provide the ceiling, so ask for the ceiling that you are on
the bank provide the date of drawdown of mortgage which gives the above info and the bank give a montly figure of how much interest will be paid in the year.
the revenue info then feeds into the mortgage systems giving you your trs payment per month.
if you ring the bank they will just give you what they can see, and sometimes what is seen is not what it actually is due to different interpretations.
1890 46 36 26

I called Revenue and what a waste of time. All she could tell me was that the 30% will come into effect later on in the year but didn't know when and that people in the 04-08 bracket were given a TRS of 25% for now but she couldn't work out how much i should be getting cause she didn't have stats or something.

rameire

ok well your ceiling is currently 3000 per person so intotal 6000.
for the year you will receive 30% so a max of 1800.
at the moment you are getting 25%, so currently a max of 125 per month
all the figures seem correct, you are in your 8th year of trs

Gareth2011

rameire wrote: »

ok well your ceiling is currently 3000 per person so intotal 6000.
for the year you will receive 30% so a max of 1800.
at the moment you are getting 25%, so currently a max of 125 per month
all the figures seem correct, you are in your 8th year of trs

Never mind .

Gareth2011

I just worked out mine and I have never gotten anything near it.

Took out mortgage in 2006.
In 7th year of mortgage now.
So ceiling is still 20,000 (Married)

20,000 x 25% = 5,000

5,000 / 12 = 416.66.

At the moment my TRS is 94 euro and I was told by tax office in Jan mortgages taken out between 04-08 were given the 25% so I should be getting 416 TRS at present is that right?