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£10 charge per overpayment...
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P.S ailuro2 my name is Fiona hence the FEE (nickmame)!!! tho hope everyone doesnt start charging me fee`s from now on!!!Smoke free since 16th Dec 2009
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I have a C&G mortgage which I regularly overpay. I can overpay by the same amount as the regular monthly payment each month (eg if your regular payment is £500 you can pay that plus another £500, or any amount up to that). They told me how to set this up simply via internet banking. This incurs no fee. I can also overpay a lump sum up to 10% of the amount owed in the January of each year (at any time of the year), and this does incur a £10 fee each time. This is what they told me quite clearly initially, and exactly what happens. Do ring them again for clarification, as obviously it isn't worth paying £10 every time you overpay a few pounds. If it is a few thousand once a year though it is not so bad. Needless to say you can just do the monthly overpaying without any fees at all if you prefer. Hope this helps.0
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I also have a C&G mortgage, and wanted to let you know that in my experience it hasn't take three months to alter an overpayment (although perhaps the three months only applies to stopping them completely?).
We have a set amount each month that we can afford to pay. This amount includes an overpayment. As we are on a base rate tracker, every time the interest rate changes I have to call them to adjust the overpayment in order to keep the overall monthly payment at a constant. They action these changes in a matter of days and I have never "missed" the benefit of an interest rate change by calling them around the 10th of the month, for the payment to be changed in time for the 25th (ish) of the month.
I too read the updated terms an conditions relating to the £10 for overpayments - sent to me with my annual statement in April. I'm sure there was also another charge I didn't like the look of, relating to recalculating something or other (term/new monthly payment?) on the back of a capital overpayment being made.0 -
We got charged the £10 after posting the cheque, maybe I should try paying it in over the counter.
Yes, I believe the 3 month thing was to cancel all overpayments.0 -
:mad: Decided to start making overpayments on my cheltnam n Glouster mortgage made 2 earlier this yr and when I phoned them yesterday they said it a £10 charge... :eek: just introduced in April so the kindly Emma told me on the phone, told her I wasnt happy but really I know its not her fault personally. Has anyone else been charged for making overpayments? Cant believe that Im having to pay to clear my debt... Ive only £18600 left to pay so its not even worth my while moving the mortgage. Im on the SVR as when we came off the deal last yr thought that we would make lots of free overpayments and get it payed in 2 yrs instead of 5. Im just so mad and thought I`d share:rolleyes:
I'm mad on your behalf!!!
What a cheek - send off a few emails to various people in the organization.0 -
Phoned C&G tonight and some1 eventually answered after 18 mins of "we have a high volume of calls blah blah blah.....Once again the overpayment I made last week had still not came out of my bank account:mad: Kindly Emma had told me it would be 48hrs?!! Anyway spoke to some1 else who said the payment was not pending and she could find no trace of it... only thing she could do was take the details again, but I said no thanks!! Though asked her if I could just go into the local Lloyds TSB and pay it there and she said YES!! result. Dont have a C&G anywhere near me but have Lloyds TSB in town so will be doing that ASAP.
C&G have been pretty poor with their customer services and all their silly FEE`s so hopefully a five min stop into TSB will sort it out and I WILL get to overpay on my mortgage.... for crying out loud u`d think the banks would be pleased that folk are trying to pay off their debts eh?:rolleyes: will let u no how it goes:D !!Smoke free since 16th Dec 2009
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Well... got a lovely letter from C&G today telling me that my interest rate was coming down:T! Excellent news me thinks! Had a look at some of the terms and conditions last night and it would cost me £32 to reduce my term from 5 to 2yrs which is not bad! Tho my payment would go up £500 per month:eek:! So now Im thinking maybe I should just save the money over the two yrs and have some fall back cash in case of emergancies e.g. a holiday, nights oot, etc. Not sure what to do so will have a think about it over the weekend speak to OH and decide what we want to do. Dont really have any savings as just had my kitchen fitted (much needed) and I always save up for things and then get them not really been a borrower except for the mortgage. Anyway any thoughts or suggestions would be helpfulSmoke free since 16th Dec 2009
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Reading the Tariff of charges dated 1/1/2008 it says:
'Capital repayment to reduce term or monthly payment - £10. . .
The charge is made: For each capital repayment applied to immediately reduce the account balance but where you also ask for your mortgage term to be reduced or your monthly payment to be reduced from the following month.'
. . . I don't understand this. I understand the reducing term thing, but it seems they're saying that the charge will apply also if you simply want to reduce monthly costs? Of course we want to reduce the monthly costs.
In the accompanying letter, it says you can make this payment by cheque, in branch, or through your bank by CHAPS. Why not BACS though? CHAPS will incur a charge.0 -
Reading the Tariff of charges dated 1/1/2008 it says:
'Capital repayment to reduce term or monthly payment - £10. . .
The charge is made: For each capital repayment applied to immediately reduce the account balance but where you also ask for your mortgage term to be reduced or your monthly payment to be reduced from the following month.'
. . . I don't understand this. I understand the reducing term thing, but it seems they're saying that the charge will apply also if you simply want to reduce monthly costs? Of course we want to reduce the monthly costs.
In the accompanying letter, it says you can make this payment by cheque, in branch, or through your bank by CHAPS. Why not BACS though? CHAPS will incur a charge.
Hi theowl,
Lynn11 asked that on my diary - see post #643 on page 33 for details:
http://forums.moneysavingexpert.com/showthread.html?t=572849&page=33
While overpaying then reducing your monthly amount may save you some interest charged, you won't complete earlier on your mortgage, as they've reduced monthly payments to keep the term the same.
If you can afford to (or you get the option), always choose to reduce the term over reducing the monthly payment, as this will save you more in interest charged on your mortgage and will result in it completing earlier.
Financial Bliss.Mortgage and debt free. Building up savings...0 -
financialbliss wrote: »Hi theowl,
Lynn11 asked that on my diary - see post #643 on page 33 for details:
http://forums.moneysavingexpert.com/showthread.html?t=572849&page=33
While overpaying then reducing your monthly amount may save you some interest charged, you won't complete earlier on your mortgage, as they've reduced monthly payments to keep the term the same.
If you can afford to (or you get the option), always choose to reduce the term over reducing the monthly payment, as this will save you more in interest charged on your mortgage and will result in it completing earlier.
Financial Bliss.
Thanks for that, I had a look at some of your posts.
With C&G, overpayments are automatically taken off the capital sum, without affecting the length of loan. I think you can phone them and ask for overpayments to affect the length of loan. I can see why reducing the length of loan would be preferable, but, in the other case, at least the capital sum is reduced and therefore interest payments would instantly be less.0
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