mortgage TRS

transam

So last month we got our trs increase to 30 % , our mortgage is with ptsb and we got letter saying that trs went up , and there was another drop in interest rate (we r on tracker) so happy days we thought , we should get by . anyway today we got another letter from the bank saying that our rapayment has changed by 20 euro more pm , so i went to the bank to ask them why it went up , they couldnt answer my quetion ,so it will take couple of days for them to get back to me with an answer , and also thr trs has not been back dated from january as it should , so has any one any thoughts on this ? maybe some one got similar letter ???

[Jackass]

Tax Relief at Source (TRS) is based on your interest payments only, so if base interest rates go down and TRS % goes up, you are getting the higher % TRS on the lesser interest amount being paid, so it may make little or no difference.

However I don't see a reason for your payments going up, unless there was some sort of term reduction or you were coming off a fixed term discount (of an additional -0.15% for 3 years or something). It may be a discount applied at draw down has expired or something...

Also it should be backdated but I'm sure they can sort that for you no problem. Sometimes the administration of the account can be a pain and there can be a lot of mistakes, but you have to keep on top of them and also don't let them fob you off, you're right to chase up the payment changes as you'd be amazed the amount of errors on accounts that just go undetected.

transam

so ptsb rang me today saying its nothing to do with them , get in contact with the revenue i been told , so i rang revenue and they told me its nothing to do with them either, our trs its at 30% and mortgage account should have lump sum of backdated trs , ptsb claim there is no lump sum , so i dont know .... there was no term reduction or anything , i will go on monday to the bank and keep at them , it must be a mistake , its madness

[Jackass]

It's been a long time since I've dealt with it, but I do remember getting TRS set up for clients was always a nightmare as you had to go through back and forth between the Revenue office and the bank. (supposedly they do it between them, but sometimes they just don't - so you have to follow up and sort it out).

From my recollection, this is the process...

1/ Fill out the Revenue TRS1 application form (http://www.quintas.ie/UserFiles/File/Mortgage_Interest_Tax_Relief_at_Source_current_year.pdf)
2/ Your bank needs to send the Revenue an Interest Certificate to state how much interest will be paid on the mortgage so you can give the form to the bank to send them together, usually this is done at draw down of the mortgage.
3/ You need to make sure the above two are done, then contact Revenue to clarify that it has been approved and payment instruction has been sent to the bank from the Revenue.
4/ If they say it has, get the persons name and contact details who told you this in Revenue.
5/ Then call the bank and tell them this and if they still can't set it up, give the person the contact details of the person in the Revenue and get the person in the bank to sort it out for you.

absolute nightmare, I know, but this is how Irish business works, unfortunately.

*Also note you're not entitled to it if it's an investment property or investment mortgage type.

shar01

I may be wrong but I think Transam is talking about the increase in TRS given in the last Budget to those who purchased houses at the height of the boom.

I'm with Ulster Bank and still waiting for change to be made to mine. I rang last month (just to give them a change from the other complaining phone calls;)). UB have not upgraded their software to accommodate the increase in TRS.

Probably afraid they'll break something....

transam

You are wright Shar01 , we bought our house 5 years ago , what makes me angry is that the revenue and bank say its nothing to do with them , one is blaming the other , while our house is worth around 100k less , these are the joys i suppose....

Shane Fitz

transam wrote: »

You are wright Shar01 , we bought our house 5 years ago , what makes me angry is that the revenue and bank say its nothing to do with them , one is blaming the other , while our house is worth around 100k less , these are the joys i suppose....

On that subject, is the revised TRS for those who bought in the boom, is it calculated from Jan of 08 or the September, when the banks were guaranteed?

shar01

transam wrote: »

You are wright Shar01 , we bought our house 5 years ago , what makes me angry is that the revenue and bank say its nothing to do with them , one is blaming the other , while our house is worth around 100k less , these are the joys i suppose....

The very nice girl in UB (probably delighted I wasn't shouting at her!) said it was software related with them. But there's probably no harm in giving the Revenue Commissioners a buzz. I'm going to do that tomorrow - more to let them know that 8 months after Budget, UB haven't passed on increase.

It's backdated to Jan 2012 only.

I know it's hard to take... but the house is only worth 100k less if you're selling

From the get-go I looked on my place as a home and not an investment.

sassyj

Hi, just following up on this. With PTSB, does anyone remember when PTSB rolled out changes to TRS as per budget 2011.

Also, did anyone ever get refunded the back dated amount of TRS due last year and how was it refunded

transam

jus got a letter from PTSB saying that due to a change in tax relief my mortgage is going up by 30euro , i was getting 30% and that should stay the same until 2017 (i think) the rate should not changed , it is 30% . anyone got the same ? or is it some kind of error ?

sassyj

transam wrote: »

jus got a letter from PTSB saying that due to a change in tax relief my mortgage is going up by 30euro , i was getting 30% and that should stay the same until 2017 (i think) the rate should not changed , it is 30% . anyone got the same ? or is it some kind of error ?

Hi I rang PTSB about it, got a really helpful woman who explained it all to me.
Presume it's the same for you as me as my mortgage is to go up by the same amount. The payment I was making monthly last year included the backdated amount due for the increase in TRS, that was not applied until July.

transam

i rang the revenue and they told me the same thing

Adventure Pout

Thats quite interesting to know that i am not alone with increase from ptsb..
I don't understand much how trs are calculated etc...
I got an increase of €10 in my mortgage repayment in january 2013.. without a letter from ptsb informing us..we just saw it online and got the letter only after they took the money :mad:
Then, again we got another letter this week saying Again (!!!) that due to trs change our mortgage repayment went up of another €22 !!! Wtf?!?
In less than 2 months we got an increase of approx.€32?!!!
How can i get the details of how ptsb calculate those sudden changes? I will call them but as previous boards replies, am sure I will hear the same thing...
For info, we bought in sept/oct 2007

rameire

trs is calculated at the start of the year based on the estimated interest for the whole year or the ceiling, whichever is lower.
January is the first month of the TRS year, so Decembers trs payment is for 2012, and January is for 2013, this is why there are always differences between dec and and jan trs payments

as you pay off a mortgage the amount of interest charged each year will reduce.

as you are now in year 7 of trs you have a ceiling of 10,000 per person
but you are on a rate of 30%

so 30% multiply by either the ceiling or interest for the year ( whichever is lower ) and then divide by 12 = monthly trs.

next year your ceiling will be 3000 per person and a rate of 30%

its quite simple really
if you know your current balance and interest rate

rudboy

rameire wrote: »

trs is calculated at the start of the year based on the estimated interest for the whole year or the ceiling, whichever is lower.
January is the first month of the TRS year, so Decembers trs payment is for 2012, and January is for 2013, this is why there are always differences between dec and and jan trs payments

as you pay off a mortgage the amount of interest charged each year will reduce.

as you are now in year 7 of trs you have a ceiling of 10,000 per person
but you are on a rate of 30%

so 30% multiply by either the ceiling or interest for the year ( whichever is lower ) and then divide by 12 = monthly trs.

next year your ceiling will be 3000 per person and a rate of 30%

its quite simple really
if you know your current balance and interest rate

We're in year 7 now of our mortgage and its gone down already so i think it happens on the year 7, our ceiling is 6000 now at 30%.
Got a letter today from the bank our mortgage is going up by 200 euro a month:eek::mad: The government is supposed to be helping people and this is what they do, bail out the banks for billions and stick it to everyone else, unreal! They say the special 30% for people is there for buyers who bought in the boom but don't mention the ceiling drop, this will just put more people into trouble and not solve anything....

D3PO

rudboy wrote: »

We're in year 7 now of our mortgage and its gone down already so i think it happens on the year 7, our ceiling is 6000 now at 30%.
Got a letter today from the bank our mortgage is going up by 200 euro a month:eek::mad: The government is supposed to be helping people and this is what they do, bail out the banks for billions and stick it to everyone else, unreal! They say the special 30% for people is there for buyers who bought in the boom but don't mention the ceiling drop, this will just put more people into trouble and not solve anything....

anybody relying on TRS to pay their mortgage has clearly over stretched themselves. Perhaps people should look in the mirror before the go blaming other people for their financial misadventures.

rudboy

D3PO wrote: »

anybody relying on TRS to pay their mortgage has clearly over stretched themselves. Perhaps people should look in the mirror before the go blaming other people for their financial misadventures.

Was expecting that the oul "fecking eegits who bought in the boom" reply, the mistake was made yes but on the back of developers, government and banks telling people to buy or you won't afford a home, market rising all the time and "buy now or forget it" , I freely admit i made a mistake and hindsight is wonderful but when it all crashed the banks are bailed out, developers are taken into NAMA and government brings in new taxes to sort it out while still looking after their cronies, where's the "financial misadventure" mirror for them?

D3PO

It's nothing to do with buying in the boom. Which incidentally I also did.

However I would never have been foolish enough to budget in something like TRS into my affordability. TRS is a nice bonus anybody considering it anything else or relying on it can only blame themselves.

rudboy

D3PO wrote: »

It's nothing to do with buying in the boom. Which incidentally I also did.

However I would never have been foolish enough to budget in something like TRS into my affordability. TRS is a nice bonus anybody considering it anything else or relying on it can only blame themselves.

A very simplistic and ruthless view, it has everything to do with buying back in the boom, people could afford their mortgages then, had jobs, rising wages etc. Probably did view trs as a bonus, unfortunately the country has changed drastically, recession, job losses etc. you know yourself. Trs drop will now push more people into problems thus not solving anything, a method by which the government can directly help people is being lessened.

D3PO

that's a capitalist society for ya unfortunately. People took on mortgages risks and all. If they didn't plan appropriately for a change in their circumstances that's what occurs.

if people took out payment protection insurance, didn't go for 100% mortgages, didn't calculate in TRS into their pay, didn't assume pay increases, or that overtime would always be available, didn't get brokers to bump up their affordability by suggesting they would be renting out rooms, didn't go for the biggest mortgage they were offered but one that would be affordable if they or their partner lost a job, didn't think of what would happen if and when they had children then the problems you allude to wouldn't exist en mass.

Its getting off topic, but my view isn't a simplistic one its based on expecting somebody whos going to make the biggest financial decision of their life actually put some thought into it rather than living in a Celtic tiger bubble and then blaming the banks and the government when the sh*t hits the fan.

rudboy

D3PO wrote: »

that's a capitalist society for ya unfortunately. People took on mortgages risks and all. If they didn't plan appropriately for a change in their circumstances that's what occurs.

if people took out payment protection insurance, didn't go for 100% mortgages, didn't calculate in TRS into their pay, didn't assume pay increases, or that overtime would always be available, didn't get brokers to bump up their affordability by suggesting they would be renting out rooms, didn't go for the biggest mortgage they were offered but one that would be affordable if they or their partner lost a job, didn't think of what would happen if and when they had children then the problems you allude to wouldn't exist en mass.

Its getting off topic, but my view isn't a simplistic one its based on expecting somebody whos going to make the biggest financial decision of their life actually put some thought into it rather than living in a Celtic tiger bubble and then blaming the banks and the government when the sh*t hits the fan.

Capiltalism! My God I never knew, ha ha, so lets all roll over and have our bellies tickled.. Look capiltalism is great in a country where regulations are in place (and enforced) to control greed and corruption, where the gambler pays his losses! You say we are solely to blame and that's fine, I disagree and there I'll leave it.

P.S. I'm glad you are so sympathetic to our "capiltalist" banks and politicians because you will be paying for their greed and corruption for the rest of your life..
(65+ billion or so..)