Bank subsidises my mortgage!?!

B

ben10

Registered User
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Just wondering if anybody is experiencing odd payments from their banks or mortgage lenders.

I drew down my mortgage a couple of months ago & have a direct debit set up for my bank account, I noticed yesterday that when my mortgage was taken from the account approximately a third was put back in.

This also happened last month, I thought it was a tax rebate until it was again returned this month.

Just to explain correctly, my mortgage was taken out by my mortgage provider. The statement read

Date Bank Name Account no. Amount
Nov 3 X X 1111111 1500
Nov 3 1111111 500

As you can see the same account number that removed the mortgage was the one which deposited the 500 but it did not say the name of the bank.

I have not spent any of this money yet & dont think i will as i am sure it will come back to haunt me but has anyone else had a similar issue?
 
Re: Bank subsidise my mortgage!?!

Is it possible that it is your TRS coming into effect.
 
Re: Bank subsidise my mortgage!?!

I'd be asking the bank about that. You may find yourself paying extra interest on the mortgage. It may well be a computer (operator) error, but the longer you leave it, the more you are likely to have to pay in the end.
 
Re: Bank subsidise my mortgage!?!

I dont think it is TRS as it shouldnt be that amount i.e. a third of my mortgage two months running, considering i only drew down in August.

There is something wierd going on, unfortunetely im out of the country at the moment but i will give them a call in the next hour
 
Re: Bank subsidise my mortgage!?!

It could well be TRS, since TRS operates on a calendar year basis. You'll therefore get the maximum available relief for TRS in the next couple of months, and go down to the "usual" amount in January.
 
Re: Bank subsidise my mortgage!?!

Looks exactly like TRS to me - the TRS allowance is for a tax year so if you only drew down in August you spread the allowance over 5 months rather than 12. It'll go down in January.
 
Re: Bank subsidise my mortgage!?!

Does this mean this is for me to spend????

Happy Christmas everybody!!!

I rang the bank & they said the same but i will ring the Tax office first to make sure, as it stands i have had E1100 paid in, if it is mine it will help furnish the new house!

thanks everyone
 
Re: Bank subsidise my mortgage!?!

Can you not only claim TRS on interest you have paid?

Assuming you are married and first time buyers and even if the €1500 repayment is interest only, then the maximum TRS that could be claimed is €300 monthly on this repayment (€1500 x 20%)

Even if you made your Nov payment already the max TRS you could have received so far is €900.

What am I missing?
 
Re: Bank subsidise my mortgage!?!

So you mean you the OP is getting an entire years tax relief in 5 months?
 
Re: Bank subsidise my mortgage!?!

jaybird said:
You're missing the several posts above that state that the years TRS available is spread over 5 months instead of 12, thereby increasing the amount of TRS by more than 50%
Click to expand...

No - you're missing twofor1's correct point - you can't get TRS of more than 20% of the amount of interest you pay in a year, regardless of whether it's spread over 12 months or 5.

If ben10 pays €1,500 per month for five months, even if the mortgage is interest-only (which it might not be) the interest he'll pay in 2008 is no more than €7,500. The maximum TRS he can get is €7,500 x 20% = €1,500. At €500 per month, this looks like a mistake.
 
Re: Bank subsidise my mortgage!?!

But if he made one or two payments before the TRS came through, it could easily be correct.

Without more information, we probably can't say. OP is right to check with the bank.
 
Re: Bank subsidise my mortgage!?!

Too late, i have spent it!!!!


Not really but a spot prize for dreamerb who asked for the missing info.

I have previously made payments without TRS & yes, it is an interest only mortgage!

So it is looking more & more like i am having a good day!?!?!
 
Re: Bank subsidise my mortgage!?!

Ooh, what's my prize??? :D

Looks like that'll ease the furniture-buying and Christmas period for you - enjoy!
 
Re: Bank subsidise my mortgage!?!

ben10 said:
Too late, i have spent it!!!!


Not really but a spot prize for dreamerb who asked for the missing info.

I have previously made payments without TRS & yes, it is an interest only mortgage!

So it is looking more & more like i am having a good day!?!?!
Click to expand...

This is great news. In the long term you are paying an arm and a leg to your bank for a interest only mortgage whilst in the short term you go on a spending spree......Yiphee
 
Re: Bank subsidise my mortgage!?!

Mr DT said:
This is great news. In the long term you are paying an arm and a leg to your bank for a interest only mortgage whilst in the short term you go on a spending spree......Yiphee
Click to expand...
Where's your christmas spirit???
 
Re: Bank subsidise my mortgage!?!

locked up in my bomb proof press..........ho ho ho
 
Hello I'm a first timer,
I have a question regarding Tracker Mortgages. I took out a mortgage with Ulster Bank 5yrs ago at that time I was told that my Mortgage will track the ECB rate with a margin which is fixed for the life of the Home loan. During this period I decided to go fixed for two years this is due to expire at the end of this month..but now Ulster Bank say I am on a varaible rate as opposed to resorting back to the cheaper tracker rate. Can they do this? Does this make sense
 
ringo said:
Hello I'm a first timer,
I have a question regarding Tracker Mortgages. I took out a mortgage with Ulster Bank 5yrs ago at that time I was told that my Mortgage will track the ECB rate with a margin which is fixed for the life of the Home loan. During this period I decided to go fixed for two years this is due to expire at the end of this month..but now Ulster Bank say I am on a varaible rate as opposed to resorting back to the cheaper tracker rate. Can they do this? Does this make sense
Click to expand...

Question duplicated and answered here.
 
Yes they (almost certainly) can and yes it does.

When you took the fixed rate, they probably didn't promise you that you could revert to a tracker rate - and since most institutions are now withdrawing tracker rates, they won't be moving people coming off fixed rates to trackers unless it's in the terms and conditions of the loan offer.

Check any paperwork you have from when you moved onto the fixed rate, but unless there's a guarantee in there that you can move to a specified tracker product at the end of the fixed rate period you're almost certainly out of luck.

However, even if you're out of luck on the tracker you may still be able to get a slightly better rate: check that the variable rate you're on at the moment is the best they can offer you - ask them for a list of available rates and see if you would qualify for a better one. The banks don't always give you the best rate automatically.

If all else fails, shop around and see if it's worth moving your mortgage elsewhere - though this will cost you in legal fees.
 
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