TRS and home insurance payments - legitimate scams?

U

upfortheba

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Tax relief at source is applied to the mortgage account on the 1st of the month. Interest is also calculated and applied to the mortgage account on the 1st of the month. Mortgage lender does not apply the TRS until after the interest has been calculated. Are they just being cheeky or are there any rules governing the application of TRS?

Home insurance has also been taken out with the Mortgage lender and is being paid by installment. Mortgage lender is applying the monthly charge to the mortgage account and applying mortgage interest to the charge. Is this legitimate sleight of hand by the lender taking advantage of the buyer's ignorance or is it something more serious?

Would be grateful for any feedback.
 
All the lenders do it slightly differently. Generally you get the payment when the lender gets it from Revenue i.e. Revenue actually pay it over.

As regards the home insurance being debited to the mortgage account, presumably it falls into 'purchase, repair, development or maintenance' of PPR.

In any event, its likely that the interest that is being paid exceeds what is allowable.

The onus is on the borrower to declare the purpose.
 
Have you checked the terms & conditions of your mortgage agreement to see what it says about (a) the application of mortgage interest tax relief at source and (b) application of interest to other mortgage related payments? Have you also considered shopping around separately from your lender for home insurance (and mortgage protection life assurance?)?
 
Have you checked the terms & conditions of your mortgage agreement to see what it says about (a) the application of mortgage interest tax relief at source and (b) application of interest to other mortgage related payments? Have you also considered shopping around separately from your lender for home insurance (and mortgage protection life assurance?)?.
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Couldn't find anything in term and conditions but I guess it could be hidden in the small print somewhere

Plan to change home insurance provider and probably mortgage lender. Just wanted to know if they were taking advantage before I meet them.

Thanks for the replys.
 
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