Mortgage Interest Relief

Only one Keano

I have a mortgage and want to know does anyone know when the Mortgage Interest Relief expires for my mortgage?

My first payment into my mortgage was in May 2006. I was receiving €245 a month from the start of the mortgage until January this year and since then it has been €75 a month.

Thanks

JTMan

31 December 2017.

I think the government are going to have to phase it out from 2018 or the banks will be dealing with a lot more households in arrears in 2018.

Only one Keano

Thanks for the reply.

Just noticed thou that haven't received any mortgage interest relief since January 2014 so would this mean that I am not going to get it anymore?

Only other thing I can think of is at moment am at loggerheads with bank about getting my mortgage from Capital & Interest to Interest only. I am only able to afford interest only and am in process of trying to get bank to agree to reduce my payments to interest only for forseeable future. I also reduced my mortgage payment to interest only (full interest only amount) a few months ago but wonder then can bank then hold back my mortgage interest relief as a result?

D3PO

your post isnt clear Keano but what I can say is that revenue are not paying TRS to people not paying their mortgages or reducing it whereby only partial payments are being made

if you google theres plenty about it. I have to assume you are in arrears despite you saying you are paying the interest. if this hasnt been agreed by the bank then your correctly not getting TRS.

Mortgage arrears and payment of interest
While the legislation governing mortgage interest relief provides for granting of relief based on the amount of qualifying interest paid in a tax year, many lenders used to operate the relief based on the amount of interest charged to an account, even if the borrower did not actually pay that amount of interest. This had little impact up to recently.

However, in response to the growing incidence of mortgage arrears, it has been decided that, with effect from January 2014 onwards, all lenders are obliged to grant Tax Relief at Source (TRS) based on the amount of interest actually paid by the borrower within a tax year in accordance with the legislation.

This change does not affect borrowers who make the full repayments on time, in accordance with their mortgage loan agreement.

For borrowers who do not make their repayments or who pay less than the amount of interest charged to their account, the TRS amount due will be reduced to reflect the actual amount of interest paid.

As regards interest-only arrangements, people who are only paying the interest portion of their mortgage are still entitled to TRS and will continue to get it if they meet the qualifying conditions.

THIS IS THE KEY PART ABOVE. Intrest only arangement. If you dont ahve an arrangement to do this and jsut took it upon yourself your not entitled to TRS

Read more in Revenue's Frequently Asked Questions.

http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_interest_relief.html

Only one Keano

Thanks for that clarification but there's one thing am not clear on.

I have a capital and interest mortgage but am now only paying the interest and not the capital. It is in the process of being agreed with the bank to change the mortgage short term to interest only but there is something out of control of the bank and meself holding up the agreement being changed to interest only, which hopefully will be resolved soon.

I am paying the FULL interest amount though so just am not clear from your post whether that means I'm entitled to TRS or not?

Trish56

Mortgage Interest relief will be abolished from 31st December 2017. If you took out your mortgage between 2004 and 2008 you should be getting tax relief on your interest rate at 30% to end of December 2017. From January 2014 you are only allowed to claim interest relief on actual interest paid. You need to contact your lender to see why interest relief was stopped.

Only one Keano wrote: »

Thanks for that clarification but there's one thing am not clear on.

I have a capital and interest mortgage but am now only paying the interest and not the capital. It is in the process of being agreed with the bank to change the mortgage short term to interest only but there is something out of control of the bank and meself holding up the agreement being changed to interest only, which hopefully will be resolved soon.

I am paying the FULL interest amount though so just am not clear from your post whether that means I'm entitled to TRS or not?

D3PO

Only one Keano wrote: »

I am paying the FULL interest amount though so just am not clear from your post whether that means I'm entitled to TRS or not?

No you are not entitled to the TRS because and its the key point you are not in an interest onlyl arangement you have unilateraly decided to do this.

Now when the bank agree to allow you do this I believe that you will again be entitled to TRS however you really should ring the revenue office and confirm.

Believe it or not they are actually very nice to deal with.

Trish56

If your lender did not agree interest only terms with you well then they may be applying your repayment against your principal. You need to discuss your financial situation with the bank, they will require you to complete a Standard Financial Statement and then decide if they are agreeable to interest only.

Only one Keano wrote: »

Thanks for the reply.

Just noticed thou that haven't received any mortgage interest relief since January 2014 so would this mean that I am not going to get it anymore?

Only other thing I can think of is at moment am at loggerheads with bank about getting my mortgage from Capital & Interest to Interest only. I am only able to afford interest only and am in process of trying to get bank to agree to reduce my payments to interest only for forseeable future. I also reduced my mortgage payment to interest only (full interest only amount) a few months ago but wonder then can bank then hold back my mortgage interest relief as a result?

Only one Keano

Thanks guys. I will chase up with the bank and revenue.