TRS Query

[Mr. C.J.H.]

I have an EBS Mortgage, it has about 12 months left to run on a 3 yr fixed rate of 5.05%. Recently when reviewing my account via the EBS Online service, I noticed that only the money paid directly be me by direct debit is being applied to my mortgage balance. Essentially, meaning that although the EBS is collecting TRS from the Revenue Commissioners on my behalf (single 1st time buyer) they are not applying it off the mortgage balance. When I queried this on friday I was told it was something to do with a security balance i.e. they keep it seperate in case I break the fixed term, which to me sounds ludicrous! And of course means that I am paying interest on an increasing balance rather than a decreasing one, as despite never missing a payment (not interest only either) and actually paying extra every month I apparently owe more now than when I initially drew down the mortgage.

I intend pursuing it with EBS myself, but has anyone experienced this or know if this is standard practice?

 

[colm5]

That is ludicrous! Its your money, not theirs.
You could call the revenue and direct the TRS to a different account number.

 

[cinders]

I think this is pretty standard practise, it is for my mortgage (NIB).

 

[TonyD]

I must admit that this is very strange.

The very purpose TRS is given is to help with the interest charged to your mortgage.

By not deducting it from the mortgage it keeps the balance higher, thus meaning more interest to be paid.

Are they keeping the TRS in some account earning interest for you, or are they making money on this.

It seems bad practice and not helping the customer. Maybe I am missing something, but they are my initial thoughts on it.

 

[woodbine]

Really interested in hearing how you get with this one as we paid our first repayment to ebs in december but have yet to apply for TRS. What they're doing in your case just doesn't seem right.




http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html



"The mortgage tax relief element on the mortgage interest is given, by your lender, either in the form of a reduced mortgage payment or a credit to your funding account"