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Recalculating LTV & Mortgage Tax Relief

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  • 17-09-2019 6:05pm
    #1
    Don4tello
    Registered Users Posts: 2 ✭


    Hi,

    I was wondering if anyone had experienced yet a Recalculation of their Loan to Value for the House and kept their Mortgage Interest Relief from Revenue. I had my House re-evaluated and would be now below >50% LTV to get into a lower Interest Rate Bracket with AIB, however i am wondering if I would loose out on the Mortgage Interest Relief in doing so.

    Welcome any suggestions ( i have a recall with the Bank but not sure if this is anything to do with them or with Revenue)
    Tagged:


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    #2
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,819 Mod ✭✭✭✭L1011


    The relief is based on the interest paid. It is only a small part of it so there is zero sense in paying more interest yourself just to get a fraction of it paid back. You don't "lose out" on anything.

    I changed LTV down two entire blocks to the under-50% rate and this brought a minor rate cut and hence a minor reduction in payments. TRS fell in line with that but I'm still saving money


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    #3
    Don4tello
    Registered Users Posts: 2 ✭Don4tello


    The Mortgage Interest Relief is the same as the Reduction in Interest Rate, so yes in fact i would be not loosing out but i would also not gain anything. Does that mean i would in fact loose it if i get the Recalculation of the LTV?


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    #4
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,819 Mod ✭✭✭✭L1011


    You will still get TRS on the new payment. It'll be less, but as long as you are paying interest you'll get it.

    It is going away entirely in a year or so anyway


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