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  • FIRST POST
    • Thunderchild2015
    • By Thunderchild2015 3rd Dec 17, 7:35 PM
    • 11Posts
    • 8Thanks
    Thunderchild2015
    Mortgage Overpayments
    • #1
    • 3rd Dec 17, 7:35 PM
    Mortgage Overpayments 3rd Dec 17 at 7:35 PM
    Hi

    Got a question I wondered if any of you financial experts can assists me with:

    My sister has a Santander fixed-rate mortgage and it is allegedly 'fixed for 15 years' according to her.

    She has recently found herself in a situation where she can totally pay the remaining balance in full.

    However after numerous phone discussions they have informed her that if she does she will have to repay the remaining interest in full which is an amount of £800-1000.

    I'm smelling a rat with this......the reason being I have been overpaying my Santander mortgage for the last 3 years and they have never demanded I pay anything in full. Also from my early experience with them and having worked in sales for 11 years I know how financial institutions enjoy employing overwhelming verbal bafflement in order to discourage people from saving money.

    Any advice would be appreciated but I'm pretty certain she could overpay this tomorrow without any interest charges.......
Page 1
    • bexster1975
    • By bexster1975 3rd Dec 17, 8:27 PM
    • 1,065 Posts
    • 4,901 Thanks
    bexster1975
    • #2
    • 3rd Dec 17, 8:27 PM
    • #2
    • 3rd Dec 17, 8:27 PM
    Hi

    If it is fixed for 15 years she may well incur early repayment charges ERCs if she pays off more than a certain % in a year ( often 10% but she would need to check). If the lost interest only amounts to £1000 she either doesn't have long left on the fix, has a super low interest rate, or a very small mortgage ( maybe all three). She needs to check her mortgage paperwork to know if what Santander are saying is a fact.

    Hth

    Bexster
    • getmore4less
    • By getmore4less 3rd Dec 17, 11:04 PM
    • 30,837 Posts
    • 18,443 Thanks
    getmore4less
    • #3
    • 3rd Dec 17, 11:04 PM
    • #3
    • 3rd Dec 17, 11:04 PM
    I suspect the real answer is she does not have a clue what they told her.

    ask how much she currently owes, what rate she is on, what the monthly payment is, how long haas it got to run to full term, what the ERC % is.
    • MM10
    • By MM10 6th Dec 17, 7:31 PM
    • 36 Posts
    • 112 Thanks
    MM10
    • #4
    • 6th Dec 17, 7:31 PM
    • #4
    • 6th Dec 17, 7:31 PM
    Does she have a copy of the initial mortgage contract?

    If if turns out she did actually fix if for 15 years, then I would put the lump sum in some index funds ....
    Total mortgage when started £256,809 in May of 2011;
    Main mortgage was £214,309; now £110,716 at Feb 2016 ; £63,645 at Feb 2017 ; £34,951 at Nov 17
    Original repayment date 2036; Mortgage free date July 2021; Dec 2020; Dec 2019;
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