Over payment

Burrell_2

Hi,
I have followed this site for a while now and have just registered.
If possible I would like some information please.
I have just remortgaged (with Abbey) and would like to take advantage of the 10% overpayment facility.( It says per month not per year in the paperwork allthough It doesnt say how to do this).
What is the best way to do this?, would I just increase my DD payment or would I have to make a seperate payment into the mortgage account?
Many thanks if you can help.

silvercar

Ask the Abbey if they will accept an increased DD. Otherwise it would be a question of sending them cheques as and when. Check with them that your interest is calculated on a daily basis so that you are getting the benefit of the extra payments immediately rather than at the end of the year.

Burrell_2

silvercar wrote:

Ask the Abbey if they will accept an increased DD. Otherwise it would be a question of sending them cheques as and when. Check with them that your interest is calculated on a daily basis so that you are getting the benefit of the extra payments immediately rather than at the end of the year.

Thanks, I have not overpayed before so am a little unsure, will have to give them a ring. The interest is daily.

balgobin

Hi, I am with the nationwide and i make my over payment by standing order. NW gave me the detais and I set it all up.

hostertlady

balgobin wrote:

Hi, I am with the nationwide and i make my over payment by standing order. NW gave me the detais and I set it all up.

Hi balgobin,
when you say you make your overpayment by standing order do you mean you have increased your 'normal' monthly payment or have you set up another standing order? if so, is there a better day to do this ie; the first of the month?

i pay extra off when i can but its willy nilly- and i have increased my standing order so i pay more than what my actual mortgage payments are..p.s. i am also with nationwide and my mortgage finished dec 2008 (yippee)

ajr

We overpay ,mainly as have been told our endowments will not meet our mortgage.Not sure if this is the best solution to sort it but intend getting advice soon.We have set up a separate standing order too.