Abbey overpayments

Little_Mama

I've been with Abbey for the past 11 years. I used to be able to tell them the amount I wanted debited which allowed for a very modest overpayment, however, when I took a further advance they said that it was all now on a new system and they'd tell me, unless I altered the term to come up to the equivalent modest overpayment (hope you are still with me on this).

I have both a fixed and variable loan, I've asked but always been told £500 minimum and despite quite categorically stating capital reduction have received several letters which have ignored this where they have reduced the monthly amount significantly.

Their lack of flexibility is a main reason for remortgaging away from them, despite the fact that they've been fairly quick to pass on an attractive SVR. I'm moving to somewhere that I'm in control and who actually appear to want to help you in your MF quest.

Good luck to any of you that manage to buck their system and good luck in your MF quest.

LM

Angela

I am with abbey and have done capital reductions in the branch,havent done any for about 2 years but used to be able to do it in branch if thats of any help to anyone.

jayremoh

my mortgage is currently on intrest only (about 600pm), but want to make capital repayments. sometimes large, sometimes small.

can i just make a payment of £100 for example to my abbey mortage account via natwest online?

Amarillo

jayremoh wrote: »

my mortgage is currently on intrest only (about 600pm), but want to make capital repayments. sometimes large, sometimes small.

can i just make a payment of £100 for example to my abbey mortage account via natwest online?

My mortgage is interest only and I was told that I couldn't make an online payment, but then I don't really trust that what I'm told is always accurate.

My payment this month went better, it was applied against the capital and a letter sent confirming this came which also showed a lower payment for next month as a result. I had requested that they leave the direct debit for the same amount but they said in their letter they were unable to do this as it is interest only and suggested I paid more into my ISA or whatever repayment scheme I was using, which doesn't help really as both our ISAs have the full amount paid in for this year.

So next month I'm deciding on how much I'm paying, then adding on the little bit extra from the reduced payment and guess I will keep doing this and pay once a month.

One thing I would say is that if you have a larger amount that you want to pay off and it is available now, I'd consider paying it in before 1 January as then you'd make the most of the 10% you are allowed to pay off each year (assuming your mortgage is the same as mine).

jayremoh

thanks amarillo. how did you overpay? phonecall? debit card? dd?

Amarillo

Apologies for not coming back sooner. I sent a cheque with a letter.

sherer

sorry can I ask a stupid question. What is the difference between a capital payment \ overpayment ?

I have some spare money but just thought if I overpaid then it would mean that my mortgage amount would come down and and then I could keep the cycle going to reduce the mortgage.

Didn't realise I had options to chose with this like reducing the terms of the mortgage and not 100% what the difference is between the two

space_rider

I phoned Abbey on Friday and asked them not to reduce my DD any further so I should be overpaying by £103 a month. Will be interesting to see if they actually do this.

leewilde20

Hi

I made an Overpayment in Feb 09 on my fixed-rate mortgage of £2,000.00. I was initially unsure how to do this, to telephoned Abbey. A gentleman told me to send the cheque and write a covering letter. I explained that I wanted to reduce the term of the mortgage, not the monthly payment, and he said to just put this in the letter.

A week later, I received a receipt for my overpayment, along with a letter detailing my revised monthly payments!! I had specifically asked them not to reduce the payments!!

I telephoned them again, and explained the above. The man I spoke to said that whenever I make an overpayment, I need to phone Abbey shortly after sending the cheque to advise them to reduce the term of the mortgage.

I explained that I had written a letter but he said I still need to phone up after sending the cheque, or the cheque will not get applied correctly?!

Very strange - it appears that the people at Abbey cannot read!

Anyway, the man I spoke to says he will adjust this and will ensure the cheque is treated as an overpayment.

Lee

Floxxie

Yep, that's absolutely correct. The easier way of doing it is to ask them for their sort code and account number and make the payment via online banking. Then call them immediately advising them that a payment is on its way and asking them to reduce your capital or term, depending which one you choose.