Bank charge £10.00 every time I pay mortgage capital...

danisam

I have an “interest only” mortgage with Lloyds TSB…. Now that the Bank of England base rate has dropped so much, my mortgage has come down a lot – this is great. I am now able to finally pay off some off some of the capital.

Every time I send them a cheque with an additional payment (it is not that much and is well within the amount I am allowed to pay off per year without being penalised)... they charge me a £10.00 "admin" fee for the pleasure of banking the cheque.

I am in a catch 22 situation as obviously if I wait a few months and send one cheque - I would only pay one £10.00 fee, but I would lose more in interest to hang fire.

Do you think this falls under the "unfair" bank charges category? I think £5 absolute max would be acceptable.... It wouldn't take more than 5 minutes to process the cheque and even then the bank teller would have to work rather slowly.

Help!

sdooley

Could you ask if the charge would not apply if for example you made the payment through internet banking?

danisam

Its not for the cheque per se, i believe its for processing the payment in general, but will deff check in whether that would make a difference!