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Abbey overpayments
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Hi.
Thanks very much for that Hippychick. Do you mind me asking what type of mortgage it is you have - we are taking out a fixed rate for 3 yrs with them - not sure if that makes any difference.
Can't wait to start overpaying!!!!
:jDebt at Highest: £11,630.10 (May 2006) Debt now: £0.00 !!!!Married to the man of my dreams :A - Sat 2nd June 20070 -
Does anyone have any advice they can offer? I spoke to a branch based mortgage lady earlier today, and she said same as Ts&Cs - minimum £500.
Soooooo confused
They did exactly the same to me "We prefer over £500". I don't really care what they prefer I just want to know the minimum!0 -
Hippychick wrote: »We have just taken a mortgage with abbey in July, I spoke to them a few weeks ago and was told to either send a cheque payable to ourselves with the mortgage account number on the back, or she gave me the bank details to do a bank transfer.
I made an overpayment of 2k via bank transfer. They decided to £700 as a monthly reduction, and the rest as capital reduction. They are really starting to annoy me now, I just cannot get a consistent answer from them.0 -
I pay my Abbey Mortgage by Standing Order rather than DD
I just rang them and told them I wanted to pay by S/O and asked for their account details
That way they can't fiddle with my monthly repayments and I actually overpay by £50 per month on S/O
It really p*sses them off and they keep writing to me telling me to stop it and pay the correct amount but I just ignore them and ring up every couple of months to have the total monthly overpayments transferred onto my capital
I also pay 2 weeks in advance on 15th of the month instead of the 1st as I get paid on 15th so they money isn't sitting in my bank account doing nothing until the 1st but going towards the mortgage interest
It probably only saves me around £5 per month in interest but it helps:cool:
JoTotal debt at 01/01/2010 £34,262 (Excludes mega mortgage) Daily interest £12.42
02/10 Now £3.12 due to repayments, BT and :money:
Olympic challenge £5081/£28,000 (18.15%)
Aim to lose 35 lbs from 01/01/2010 to 30/06/10 9.5/35
1 debt in 100 days £2886/£38390 -
Hi,
I have successfully made overpayments on my 3 year fixed term mortgage with abbey. You can make overpayments of up to 10% a year of the outstanding balance of your account 1st of Jan each year (10% of the statement balance). The way they told me to do this is to write a cheque made payable to yourself... thats right... Yourself! I thought this was bizarre at first until they explained that it was no different to me transferring money between two accounts in my own name. They told me to write on the back of the cheque the mortage account number along with what I wanted to do with the money, for example "capital repayment", keep the monthly repayments the same and reduce the term (reducing the amount of interest you pay... saving money!). You then have to write a covering letter to explain what you want to do with the repayment, again "capital repayment". See below an example of the letters I have been sending to them with their address (feel free to use this format).
You can also adjust you're monthly repayments to make regular overpayments with no extra early repayment charges (even if you have made the 10% capital repayments in that year) as long as you don't clear the mortgage before the end of the fixed term. To do this it is best to write to them (address below) and state how much extra you want to pay making sure you state that you would like to reduce the term with these payments.
Mr. I Overpayer
1 Pay off mortgage early,
To save money,
AND SPEND ON FLASH CAR
AB1 2CD
Tel: 01234 567890
Mob: 07712 345678
Mortgage account number:
0915/123/456789012/YER
Abbey
PO BOX 287
Stockton-on-Tees
TS17 6QQ
17th July 2010
Dear Sir/ Madam,
I would like to make a capital repayment on mortgage account number: 0915/123/456789012/YER for the sum of £10,000.00p
Please find enclosed cheque number 200001 for the total sum of 10,000.00p (Ten thousand pounds only) made payable to Mr. I Overpayer.
Please ensure the term of the mortgage is reduced and that the monthly repayments remain at £1,000.00p per month as normal.
Please confirm in writing when this has been processed and the remaining balance on the mortgage.
Yours Faithfully,
Mr. I Overpayer0
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