Direct Debit Discount

amischiefmaker

The same burden I was never charged for when I was with the Scarborough and for the Skipton when they took over from them? Is it so hard for a computer to see a payment come in from an account referenced to a valid Skipton account and link it correctly? Or is the computers union demanding more money and more rest breaks for it lol.

VIGILANT22

Is it so hard to change from a SO to a DD, as most people administer nowadays...
You have borrowed their money, so they're entitled to set the rules, if they want to reward people with a 0.25% discount most people would be happy to co-operate to take advantage of this........

amischiefmaker

Is it so hard to change from a SO to a DD, as most people administer nowadays...
You have borrowed their money, so they're entitled to set the rules, if they want to reward people with a 0.25% discount most people would be happy to co-operate to take advantage of this........

So long as they are consistent in their practices!
We could argue all day about this, about direct debit problems (see forums on here), the fact that the original loan is paid back at huge profits for the lender, and how the financial community are responsible for gambling away the economy etc etc but the facts are that an extra levy has been imposed on me which wasn't there in the original contract so I either change the way I pay or move on, and after a quick search I can see that there are much better deals out there so why not move on and give all the profit to them instead of the Skipton and save myself some money in the process:-)

VIGILANT22

amischiefmaker wrote: »

Is it so hard to change from a SO to a DD, as most people administer nowadays...
You have borrowed their money, so they're entitled to set the rules, if they want to reward people with a 0.25% discount most people would be happy to co-operate to take advantage of this........

So long as they are consistent in their practices!
We could argue all day about this, about direct debit problems (see forums on here), the fact that the original loan is paid back at huge profits for the lender, and how the financial community are responsible for gambling away the economy etc etc but the facts are that an extra levy has been imposed on me which wasn't there in the original contract so I either change the way I pay or move on, and after a quick search I can see that there are much better deals out there so why not move on and give all the profit to them instead of the Skipton and save myself some money in the process:-)

Better than 3.2%? (4.95% -1.75% = 3.2%)...remember you have all the facilities at the mo' of overpaying without restrictions...if you move..you will have a discharge fee added when redeeming the mortgage, possibly a set up fee with new lender ....can you find a deal to match 3.2% without restrictions and no fees???

dunstonh

Is it so hard for a computer to see a payment come in from an account referenced to a valid Skipton account and link it correctly? Or is the computers union demanding more money and more rest breaks for it lol.

Yes it is. Direct debit requires no human input. Standing order does as they have no control over the standing order and someone has to check to see if you have made the payment into the central account and then divert it to your mortgage account. Human input involves more cost.

Lots of businesses will offer a discount. Are you now saying that discounts are unlawful?

opinions4u

Mortgages that are paid by standing order are statistically more likely to end up in arrears, repossession and losses for the lender than those paid by direct debt.

While the OP may not like the lender's policy, there is logic to it.

If you don't like it, take your business elsewhere.

Thrugelmir

amischiefmaker wrote: »

So long as they are consistent in their practices!
We could argue all day about this, about direct debit problems (see forums on here), the fact that the original loan is paid back at huge profits for the lender, and how the financial community are responsible for gambling away the economy etc etc but the facts are that an extra levy has been imposed on me which wasn't there in the original contract so I either change the way I pay or move on, and after a quick search I can see that there are much better deals out there so why not move on and give all the profit to them instead of the Skipton and save myself some money in the process:-)

We could. But as you've borrowed from a mutual building society which is in effect a non profit organisation. As the profit is retained for the benefit of the members. Any method by which they can reduce and control administration costs makes sense. Hence why they've intoduced the change.

redpete

amischiefmaker wrote: »

I preferred to pay by standing order because it meant I could budget better so no matter what the interest rates were I knew exactly what I was paying each month.

Budgeting like that would only be useful to avoid paying more when the interest rate went up - so you would like to not pay the amount required for the new interest rate until it suited you, so the BS would not get the payment when they should.

I think I see why they prefer DDs.