Fixed Rate Mortgage and TRS

B

boe

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I'm on a fixed rate mortgage and when applying for TRS 2 months ago, I asked for the amount to be credited to my mortgage account but instead it is being credited to my current a/cc.
Is this because I'm on a Fixed Rate mortgage or is it just an error in processing it by the bank?
 
I'm also on a fixed rate mortgage. With TRS for me what happens is bank take full amount of the mortgage out of my current account I pay it out of and then on same day they put into my current account the TRS. So they basically take the full mortgage payment but give back the TRS.
 
Some banks don’t apply the TRS amount directly to the mortgage account. Presumably this has something to do with the way their computer/accounting systems are set up, but would have nothing to do with the fact that you are on a fixed or variable rate.

Realistically it doesn’t make any difference to the amount you pay every month– it just means that you have a higher mortgage repayment instalment amount debited from your current account with a separate credit for the TRS amount. The net effect to your mortgage is the same as it would be if they deducted a smaller mortgage repayment instalment amount from your current account & applied the TRS credit directly to the mortgage account.

At least with the way your bank is doing it you can clearly see what TRS amount you are receiving without waiting for a mortgage account statement.
 
and the way your bank are processing it means they are able to make more money from you.
some banks lodge the trs into your mortgage account usually as soon as they get it, usually the 1st of the month.
if this is the case it means that your mortgage has already been reduced by the trs amount thus saving you a slight bit of interest.

where as, with you they just lodge the money into your bank account when you make a payment to the mortgage, so it has no effect on the mortgage until you pay your monthly repayment.

but i doubt they think like that, they are a bank, they are not in it for the money.
 
TRS is a matter between the individual and Revenue. Is understandable that many banks prefer to take the full amount of the mortgage by direct debit from the borrowers account as it is the borrower who responsible for repaying the full mortgage as opposed to jointly with Revenue.
 
Thanks for the replies. I would have preferred the TRS to come off the mortgage but I suppose it doesn't really make a difference. Will buzz them anyway to see if it can be changed.

Cheers
 
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