Flexi Morgage - Possibly very stupid question

roswell

Hi all,

I have a flexable morgage with Woolwich that is offset against my current account, since the day I got it the Direct Debit has come out on the 16th and no matter how hard iv tried they wont budge on changing the date (I get payed on the 21st )

Any way I can manage the morgage and make over payments at any time and the interest is worked out daily I believe, If i set up a standing order that pays the £135 I pay monthly to them surely I can cancel the direct debit ?? or would i be in breach of my agreement ?

Secondly either im stupid or clever (not sure which) but if i made weekly payments instead of a signle monthly payment wouyldnt i cut more interest off my final amount ?

Thanks

Graham

Ian_W

Hi roswell,
You'd need to check your T&C's but I believe most lenders require you to pay monthly [although other lenders do allow you to change/choose the day] by Direct Debit. SO doesn't allow the lender to change the amount if interest rates change and changing the day of the month may well incur one-off extra interest, its longer than a month when you change as you wish to for the first payment - if you get my drift.

HTH.

roswell

Hi Ian W

Thanks for that I think ill address this next week (currently working nights) Im over payed by £3000 so the one off change shouldnt be to big a issue, as i can pay into it at any time via internet banking I think i might have a look at over paying by 1 months payment and over paying by 4 weekly payments ad see what differance if any it makes.

Thanks

Ian_W

Hi roswell,
I thought you meant paying your normal mortgage payments weekly, which is a NO NO. If you mean overpaying weekly, I think it will depend on whether your interest is calculated daily, if Woolwich confirm it is then paying weekly will help, if it's calculated monthly I don't think it will make any difference. You need to find out which it is to be sure.
BoL, overpaying is a great way to get rid of your mortgage early.

roswell

sorry i did mean making the normal payments weekly if i can get out of the monthly direct debit

stevenclarkuk

Hi,

My Mortgage is with Abbey National.
Originally they stated they could only take the money out on the 3rd of the month via DD even though I got paid on the 6th!!

To help me, I cancelled the Direct debit (with thier approval), paid £30 or so in interest over the phone so that my account was paid up until the 8th, then every month I called Called Abbey and paid my mortgage by switch over the phone.. Annoying yes, but it was better than having money lying in my account for 4 weeks and it meant I could make over payments at the same time..

Hope this helps,

steven

stanmoresaver

roswell wrote:

Hi all,

I have a flexable morgage with Woolwich that is offset against my current account, since the day I got it the Direct Debit has come out on the 16th and no matter how hard iv tried they wont budge on changing the date (I get payed on the 21st )

Any way I can manage the morgage and make over payments at any time and the interest is worked out daily I believe, If i set up a standing order that pays the £135 I pay monthly to them surely I can cancel the direct debit ?? or would i be in breach of my agreement ?

Secondly either im stupid or clever (not sure which) but if i made weekly payments instead of a signle monthly payment wouyldnt i cut more interest off my final amount ?

Thanks

Graham

I had this problem with my personal mortgage- which i moved two years ago so this may not be totally uptodate.

Woolwich will accept payment by DD only on mid month- therefore, if you want to pay another day you have to pay by SO. Speak to your bank and the woolwich- get a member of Woolwich staff to write down the sortcode and account number for you to use for the SO and keep a record of the names of everyone you speak to. As you can see, i have little faith in Woolwich systems and customer service.

Paying weekly, based on my experience would be futile as they would probably lose the money anyway!