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    • ohit
    • By ohit 21st Sep 16, 3:05 PM
    • 346Posts
    • 47Thanks
    ohit
    Standing Order instead of DD?
    • #1
    • 21st Sep 16, 3:05 PM
    Standing Order instead of DD? 21st Sep 16 at 3:05 PM
    I've read a few posts here about people canceling their Direct Debit mortgage payment and switching to Standing Order instead. I assume this to get into the habit of over-paying.

    I have my mortgage sort code and account number. Do I need to first call our lender (Clydesdale) to make sure any payments over the minimum repayment is used to overpay the mortgage and not just cash for "payments in advance" ?

    They called a few days ago as a courtesy call and insisted I need to speak to a different department who could verify if I could actually afford any over payments or not (we can, easily) and must be for a minimum of 3 months.

    Hope this makes sense
Page 1
    • grandma247
    • By grandma247 21st Sep 16, 3:09 PM
    • 2,345 Posts
    • 32,868 Thanks
    grandma247
    • #2
    • 21st Sep 16, 3:09 PM
    • #2
    • 21st Sep 16, 3:09 PM
    I would call them and get them to put you through to the right department. We paid ours by standing order for a few years until it was paid off early because we just about doubled the payment. It went out weekly because pay was weekly and because it was gone before I got to the bank each Friday I never missed the money because I never saw it.
    • ohit
    • By ohit 21st Sep 16, 3:29 PM
    • 346 Posts
    • 47 Thanks
    ohit
    • #3
    • 21st Sep 16, 3:29 PM
    • #3
    • 21st Sep 16, 3:29 PM
    Thanks

    What do you recommend I say to them, that I want to pay by standing order and for those payments to automatically go towards the principle?
    • zx81
    • By zx81 21st Sep 16, 3:35 PM
    • 8,684 Posts
    • 8,514 Thanks
    zx81
    • #4
    • 21st Sep 16, 3:35 PM
    • #4
    • 21st Sep 16, 3:35 PM
    Any overpayments will always go towards the principal.
    • A Frayed Knot
    • By A Frayed Knot 21st Sep 16, 5:51 PM
    • 1,588 Posts
    • 7,208 Thanks
    A Frayed Knot
    • #5
    • 21st Sep 16, 5:51 PM
    • #5
    • 21st Sep 16, 5:51 PM
    Any overpayments will always go towards the principal.
    Originally posted by zx81

    Not always, mine didn't, even though I asked for my lump sum o/p to come off the mortgage. They acted dumb when I asked it be taken off my mortgage figure and not allocated to my sub accounts.


    Did they listen, no, they split it and in proportion took off mortgage and sub accounts, even the one sub account that did not have any interest charged on it.


    So, my advice is to phone them and make sure they take o/p's off what you want it to come off.
    Always have a 0 at the end of your mortgage balance and someday it will all be 0's
    MF Original date March 30 Remortgage Oct 23 Target -Dec 19
    o/p 2014/£4000, 2015/£6294.69 MFW2016 #27 £3033.31/£3000, MFiT T4 .#5
    New Target for o/p £720.39/£1000 by 31.12.16
    • grandma247
    • By grandma247 21st Sep 16, 6:49 PM
    • 2,345 Posts
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    grandma247
    • #6
    • 21st Sep 16, 6:49 PM
    • #6
    • 21st Sep 16, 6:49 PM
    Tell them what you want them to do with the money. It didn't matter to us because we wanted the lot gone.
    • ZoPig2016
    • By ZoPig2016 22nd Sep 16, 6:42 AM
    • 68 Posts
    • 114 Thanks
    ZoPig2016
    • #7
    • 22nd Sep 16, 6:42 AM
    • #7
    • 22nd Sep 16, 6:42 AM
    I have both, DD does the required payment and SO does a bit extra. I also then send additional ad hoc payments by faster payment. Mine doesn't have sub accounts so I don't need to explain it to them, there's only one place for it to go.
    Emergency fund: £1000 / £5000 Weight loss: 9 / 62lbs LTV JULY 2018 projection: 70.52% / 65%
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